What are core values?? For any individual or organization who needs to locate their values, creating core values is extremely important to help individuals or organizations gain prestige and voice in society. In business, this is also a key factor determining the price and positioning of products in the market. So what are core values? Let's Johnson's Blog Find out in the following article.
What is the concept of core values?
In the modern business world, we often hear phrases like core values, mission, vision, corporate culture, ... associated with every step and all business activities of the company. To be able to see and define correctly, readers must first understand the basic concepts of these categories.
Core values are the essential and enduring system of guiding principles that influence an organization's decisions and actions. That means even if the company's mission and plans change, the core values remain the same. This is also the belief system that affects how people behave towards others or between groups. Core values are considered "soul" and "root" in the organization, helping to form a shared mentality and create a culture.
Not only that, core values are everything in business that cannot be measured by material values and are the basis for the unit to build its common rules.
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Components of building the core value of the business
Each company will have its own development orientation and establish specific core values associated with the company trademark for the unit. Core values of the product It is also a factor that companies need to pay attention to. It is important to stand out from the competitor other.
To form a core value for the business, the organization needs to identify some of the following elements:
- Responsibility: For actions, decisions, policies. It applies to each individual as well as to the collective as a whole.
- Balance: Towards an ideal working environment where work and employee health can be maintained.
- Commitment: Concerning standards of product/service quality.
- Community: Actively contributing to society, demonstrating responsibility and ethics.
- Empowerment: Encourage the initiative and creativity of members.
- Innovation: The pursuit of innovative, world-changing things.
Besides defining for themselves a separate way of positioning, businesses can completely refer to famous brands such as: What are Apple's core values?, the value that microsoft brings... This will be a valuable lesson for organizations in the first steps.
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5 steps to determine the core value of a business
Identify personnel in charge
It is extremely important to identify the person or group responsible for establishing and maintaining core values. This provides consistency in how you are held accountable and ensures core values are upheld in day-to-day business operations. Elements of an organization's core values are linked from day-to-day operations to the company's sales policy and growth plan.
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Find out inside the business
The basis for forming core values are based on the company's available resources, so it is paramount to identify the elements that the company has. Businesses can refer model 5m with components: Material - Machine - Man - Method - Measurement.
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Analyze business resources
Depending on the company, what they consider important to their business is different. Therefore, the construction of core values cannot be "imitation" by any other company.
A few important questions need to be answered at this stage:
- What drives the business in the market?
- What do we want our company to be known for?
- The difference of the business compared to competitor?
- What motivates employees to join the organization?
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Remove inappropriate values
To refine the list important corporate values, administrators must go through a “retain, discard, and combine” process to select from 10 to 15 optional characteristics that are truly important to the organization.
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Check and make the final decision
To create The company's complete set of core values, the manager must make it to the final stage by reviewing the list of 10-15 options above to choose the 5 - 10 most important values for your company. Typically, a company has 3-7 core values that are aligned and represent the team.
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