Operationalizing core values
How to bring them to life
In this edition
Stuff you might like
Operationalizing core values [lightly-edited reposted from LinkedIn]
Stuff you might like
I loved this NYT story (paywall unlocked) about an amateur musician making USD200k a year from basically the Spotify equivalent of clickbait. It’s a fascinating look into his psyche. It’s also a peek into a possible future of endless volumes of AI-generated music and video flooding platforms, potentially drowning out human-created content.
I like reading Klement on Investing, a newsletter by an investment bank economist, because he explains academic research about investing in a very accessible way. He recently discussed a paper on the economic indicators that really matter (hint: there are only 3-5 that truly matter). I liked his reminder at the end, that it’s supposed to be hard:
There is no easy way to beat the market, no simple checklist to follow, because if there were, everybody would do it and the checklist would simply become market consensus again, and following it at best will give you average returns. To quote Charlie Munger from the Howard Marks letter linked above: “It’s not supposed to be easy. Anyone who finds it easy is stupid.”
Operationalizing core values
[lightly-edited repost from LinkedIn]
Last week, I posted about the importance of core values. Coincidentally I later had a great chat with a founder about their company’s proposed new core values. 🧭
We discussed 4 key areas:
📝 The process by which these core values were drawn up. Involving as many people as possible will help increase the core values resonate and connect with the team.
🧐 The extent to which they reflect the founders’ own values. Given their dominant role, founders’ personal values will inevitably shape the company’s values. This is primarily a reality check to ensure genuine founder alignment with the selected values.
🌟 Clarity on whether the core values describe existing reality or are aspirational. Aspirational core values need deliberate mechanisms to become reality. But there can’t be too many aspirational values at any given time.
🔧 Mechanisms to reinforce the core values. Announcing the core values is just the first step. Deliberate mechanisms are essential to make them more than just words on a wall. Common examples are recruiting and recognition processes to evaluate candidates for core value “fit” and to reward employees for championing core values. Famously, Airbnb has Core Values Interviews and Amazon has Bar Raisers. “Softer” mechanisms like rituals and story-telling are also powerful, but not sufficient in themselves.
There are of course other critical things, like role-modelling by founders and leaders 🏆 and responding to culture violations. ⚠️ All of which is a reminder that driving values and building culture is not easy.