It is imperative that the founding partners share the same values. It is important that the employees understand fully the values of the company. They should be shared and explained. It will help the company stay on track as it grows. Understanding the basic values will allow each individual to operate inside the values of the company. I also use this in evaluating the decisions of my managers. If someone is acting outside of the values of the company it allows me the opportunity to explain the values and discuss why they are important. If a manager is unable to embrace corporate values I usually encourage them to find employment elsewhere because they will, sooner or later, create a serious problem for the company.
The Values Statement is self-explanatory. It describes how you feel the company should act. It tells the world what you think of investors, employees and the community you are part of. If you do not believe any of these are stake-holders you should explain this because someone in your company will think that these parties have a vested interest and will act outside of what you think is correct.
You will find boilerplates for values statements. These templates are things that good thinking people have written, but do not believe in. These templates are useless. Write what you think. Describe your thoughts as completely as possible. This statement will be the guiding light for your partners and employees. It will indicate how they should take on problems when something unusual arrives or the company takes on new sets of problems when the business environment is changing.
Take your time writing this statement and review it often. It is the essence of who you are. It says what is important to you and explains why you act the way you do. If the statement is fluff, those around you, including private equity, will see this immediately and you will lose credibility.
The following is a values statement from one of my companies. We were dedicated to customer service, more than anything else, and successfully created an all cash retail business with 17 million Euro in Revenues by the fourth year.
We are dedicated to those who use our products and services. In meeting their needs, we must produce quality services. Our objective is to serve our customers as they want to be served, providing quality services at reasonable prices. We must anticipate the technological advances in the market, continuously improving and developing our product and service line. Quality control must be an integral part of our process creating long-term relationships with our client base.
Our employees are respected as individuals and are compensated in a fair and adequate manner. We recognize their merit and respect their dignity. Development and advancement for those qualified will create an atmosphere where suggestions and complaints are possibilities for growth and unity. We must provide competent management, and their actions must be just and ethical.
Our final responsibility is to our shareholders. Business must make a sound profit. Research and Development is our future. We must purchase new equipment, new facilities and launch new products guaranteeing the investment of those who believe in our company. Reserves must be created to provide for adverse times. Our shareholders should realize a reasonable return when we operate according to these principles.
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