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Tag: Company values

  • Why I Prioritize People Over Profit | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    Every business decision reflects a value system, even if it’s not named outright. When sales drop, do you cut costs or beef up your sales team once you’ve confirmed your sales strategy still works? That choice reveals where you put your weight, i.e., what you prioritize when resources are constrained but the company still has room to maneuver.

    For me, the answer is to invest in the right people. However, some organizations make the choice of never calling out which approach is driving their decision-making.

    Instead of making a strategic choice, these companies operate from unnamed assumptions. This leaves their leaders in a precarious situation. When a crisis hits, some choose security while others choose growth, creating confusion and conflict. That is a value killer.

    It’s people who create value, however you define it — be it profit, revenue, standards or culture — and the leader’s job is to give them the clarity they need to align their roles with organizational goals. So here is how to bring those values to the surface to create space for principled decisions, even when the right path isn’t easy or perfect.

    Related: Why Profits Over People Is Destined to Fail

    The cost of unnamed priorities

    Decision-making can be a good gauge of how well an organization is aligning its priorities. The bigger the company, the higher the cost of people pulling in different directions. McKinsey found that fewer than half of the 1,200 global business leaders it surveyed described their decisions as timely, and many of their decision-making processes were ineffective.

    Decision paralysis does not afflict companies because they lack data like sales, profit and headcount, but because they haven’t named their values or aligned their value within the company as part of their culture. When priorities aren’t explicit, people judge each other’s actions through their own value lens. Then they get frustrated when the other party is doing it differently.

    There are exceptions. When survival is at stake due to looming bankruptcy or market crashes, the scope of decision-making narrows and cost-cutting becomes unavoidable. However, in most downturns, I have to align the whole team on what we should do. It’s then that I prioritize people over short-term profit concerns, not because I ignore financial results, but because empowered people build sustainable businesses over time.

    When values clash

    The tension between people and profit isn’t theoretical — it’s a lived reality on a daily basis. Corporate culture is basically an aligned value system that needs to be called out so everyone follows it to maximize effectiveness.

    We need to see value systems not as obstacles, but as guiding forces. They help reveal what matters most when trade-offs feel murky. Think about these clashes of values, which companies of different sizes may face without clear priorities:

    • Speed vs. quality: Do you ship fast or perfect the product before going to market?

    • Innovation vs. efficiency: Explore new markets or optimize current operations?

    • Customer satisfaction vs. margins: Absorb costs to build reputation or protect profitability of the current quarter?

    • Centralization vs. autonomy: Head-office control or local decision-making?

    Confronted with these kinds of tensions, I don’t aim to impose my values, but I also don’t believe avoiding the conversation serves anyone. Instead of choosing between competing values, the goal is to agree on the structure for how we balance them or prioritize one over the other under what conditions. Forget neutrality. Prioritizing and balancing values is not a 50-50 proposition. Instead, we first have to lean into conflict to create clarity.

    Related: Holding True to Your Values Is an Essential Decision-Making Metric

    Bringing values to the surface

    The best approach to get everyone on the same page is practical, although perhaps sometimes uncomfortable. If I am on the management team and there’s disagreement between whether to cut costs or invest in more people, let that argument surface at the table so everyone can discuss it from their own perspective.

    Cost-cutting is not necessarily anti-people. And investing in people is definitely not anti-profit for the long run. But it may feel the wrong way when decisions aren’t grounded in a shared value framework.

    The safety versus speed crisis over at OpenAI showed how misaligned values can play out if leaders are divided. The board operated from OpenAI’s original nonprofit mission that put safety first, while CEO Sam Altman valued speed to market. When Altman was briefly fired in 2023, the chaos that followed — employee revolt and investor panic — put the organization at existential risk.

    The resolution came only when OpenAI built a frame that let them hold both safety and innovation together. To avoid value killers like OpenAI’s one-time crisis, values need to be named explicitly. If there’s conflict over assumed values, this is your opportunity to build structures that hold them in balance.

    Related: How Putting People Before Profit Fueled My Company’s Long-Term Success

    Values as navigation tools

    The lesson from OpenAI was that every growing organization faces moments when values seem to clash. In mission-driven companies especially, scaling brings tension between staying true to purpose and chasing market opportunities. Rather than avoiding that tension, it must be confronted.

    This isn’t about moral superiority or choosing sides in some philosophical debate. The organizations that thrive are the ones that make their priorities explicit and have the agility to balance them when they appear to conflict. That’s what putting people first actually means: giving your team the clarity they need to navigate complex choices and create lasting value together.

    Every business decision reflects a value system, even if it’s not named outright. When sales drop, do you cut costs or beef up your sales team once you’ve confirmed your sales strategy still works? That choice reveals where you put your weight, i.e., what you prioritize when resources are constrained but the company still has room to maneuver.

    For me, the answer is to invest in the right people. However, some organizations make the choice of never calling out which approach is driving their decision-making.

    Instead of making a strategic choice, these companies operate from unnamed assumptions. This leaves their leaders in a precarious situation. When a crisis hits, some choose security while others choose growth, creating confusion and conflict. That is a value killer.

    The rest of this article is locked.

    Join Entrepreneur+ today for access.

    Simin Cai, Ph.D.

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  • How to Build a Legacy For Your Company You Can Be Proud Of | Entrepreneur

    How to Build a Legacy For Your Company You Can Be Proud Of | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    When was the last time you took stock of what your business has accomplished and what its legacy will be after you’re gone?

    Understandably, most of us are caught up in the day-to-day demands and challenges of running our company or organization while trying to manage our personal lives. Few of us ever take the time to consider what we are working towards in the long term. Where will your business be in 10 years? In 20 years? And what if, through some unforeseen tragedy, you died today and your enterprise was forced to close – what would your obituary say, and what would be written about your business?

    The “obituary test” or “eulogy test” is an exercise often used by individuals to assess their personal lives. It helps ensure they’re living in a way they’ll be proud of when they look back on their lives.

    It may seem like a morbid process, but it can be a powerful tool for determining whether or not you and the organization you’ve invested so much time, effort and energy into are aligned with your personal values in a way that will endure after you’re gone. Clearly, there are many business metrics for determining the material value of what you’ve built: stock price, dividends paid out and market cap, among dozens of others.

    Related: 5 Factors for Planning Your Entrepreneurial Legacy

    But what if you had to answer the following questions: What is your business’ legacy? What will people say about you and your business after you’re gone? Are you happy with what they will say? There are plenty of examples of companies that have left behind terrible legacies. Think of the energy company Enron, which defrauded investors, price-gouged customers and evaporated its employees’ pensions due to its corporate greed and illegal accounting practices.

    Or consider Lehman Brothers, the investment bank that was revered for over a century before its reputation was swiftly erased in a few weeks during the early days of the 2008 financial crisis. Initially, Lehman’s heavy investment in subprime mortgages helped them record astronomical profits, but when the market crashed, Lehman’s downfall was rapid and brutal. Lehman’s demise led to the biggest bankruptcy filing in U.S. history — $619 billion, with investors and U.S. taxpayers left holding the bill.

    Legacy is not just about how you hope you and your business will be viewed 20 or 30 years from now. It’s about creating a business culture now in which every decision, big or small, is aligned with the ultimate legacy you hope to leave. It’s about living your legacy today and every day.

    For years, the corporate model was based on maximizing profits at all costs while doing damage/reputation control through charitable donations. That’s exactly how companies like Purdue Pharmaceuticals operated. They made billions by misrepresenting the data on their highly addictive drug, OxyContin, which greatly contributed to the opioid crisis that continues to haunt America today. At the same time, the Sackler family, which ran Purdue, donated millions to the arts, charities and universities. Today, with the family’s legacy in tatters, most charities and institutions refuse to deal with the Sacklers or their trust.

    What these examples illustrate is that both your personal and business legacy are determined by your actions throughout the history of their existence. It’s not just the end output of profits for shareholders or a big donation to a charity after years of unscrupulous business conduct.

    Consumers want companies that are committed to more than just the bottom line of profit. They want authentic companies that walk the talk. That’s why companies like Costco are both profitable and trusted. The Reputation Management Company says that Costco has “a legacy of excellence and member satisfaction,” which is one of the reasons they are the second “most trusted company in America” (behind only Patagonia), according to a 2023 Axios survey.

    They offer low prices, quality products, treat their employees well and support their local communities through charitable donations, partnerships and they pay employees to “volunteer” in the community. They walk the talk and are living their brand’s legacy from CEO to frontline employee.

    Related: Leaving A Legacy: Your Business’ Success Requires A Sustainable-First Approach

    So, what does the obituary test tell you about you and your company? Is your company or organization creating a legacy you can be proud of that aligns with your values? If not, here are a few ideas to get you started:

    Create a legacy statement: We all know about mission statements, but consider also creating a legacy statement that articulates the impact you want your business to have in the long term – whether in your community, country or the world.

    It should reflect the values you want your company to uphold and the kind of legacy you want it to leave behind. Work with your team to develop the legacy statement and incorporate it into your strategic and long-term planning to ensure your company is working towards it daily.

    Carry out a legacy audit: Just as you might conduct a financial audit to assess your company’s fiscal health, a legacy audit can help evaluate the level of alignment between your operations and your values. The legacy audit should cover a thorough review of your company’s values, practices, products and culture. Identify areas where you’re on track and where you’re falling short so you can create a plan to address the gaps.

    Implement a values-based decision-making matrix: To ensure that your business decisions consistently reflect your legacy statement, consider implementing a values-based decision-making framework. This framework should include a set of guiding questions or criteria that you and your team can use to evaluate key decisions. For example, “Does this decision align with our company values?” or “How will this decision impact our long-term legacy?” This approach ensures that your legacy remains front and center in your day-to-day operations.

    We all want to be proud of the legacy that we leave behind. If you don’t like what you see, get to work on creating the legacy you want.

    Marc Kielburger

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  • I Scaled My Company From $10 Million to Over $200 Million in 4 Years. Here Are 3 Things He Did to Lead The Company Through Market Disruptions. | Entrepreneur

    I Scaled My Company From $10 Million to Over $200 Million in 4 Years. Here Are 3 Things He Did to Lead The Company Through Market Disruptions. | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    When I started Appfire in 2005, hardware was king and companies like Dell, IBM and HP were the leaders and innovators of all things tech. Businesses relied heavily on hardware to fuel their IT infrastructure, and the idea of the cloud seemed like a utopian dream. My partner and I built our business to support traditional hardware-centric models, and it was a system that served as well in those early years.

    By 2010, I found myself at a crossroads as the rise of cloud computing was slowly shifting focus toward virtualized environments and we were deep in development to deploy new collaboration software on a hardware-based platform. VMware burst onto the scene, making virtualized software all the rage. Hardware evaporated almost overnight.

    As a business leader, I had to make a difficult decision: should I steer my team and company in a direction that would essentially abandon all the work we’d put towards our hardware-based product to jump on the virtualization trend with the rest of the market and our competitors? Or should we stay the course, pressing on with our product that was built on a hardware platform? After careful deliberation, we decided against investing in virtualization right away as the timing wasn’t right for us.

    I’m reminded of this anecdote as the AI boom continues its momentum, with no signs of slowing down. Just take a look at Nvidia’s recent earnings or Atlassian’s introduction of Rovo, an AI assistant. Someday, when we look back at the history books, this period will be marked by the incredible rush and shift we’ve seen from companies of all sizes to integrate AI into their offerings. This extends beyond merely providing AI-powered solutions. Companies are rebranding, restructuring and reinventing themselves as AI-centric to attract investment, talent, and market share.

    As business leaders, we’re constantly faced with the challenge of whether we, too, should jump on the latest trend. Do we follow the pack and shift our entire strategy and product roadmap, or remain on our current path?

    Related: 10 Growth Strategies Every Business Owner Should Know

    Through my own journey of growing and scaling a leading software company from $10 million to over $200 million ARR in four years, I’ve identified three tips that can help leaders determine whether to embrace a trend or stay the course.

    1. Ensure the shift aligns with what customers want

    Don’t lose sight of customer wants and needs during times of change. Getting it right for your customers is more important than being right. Research has found that more than 90% of people believe companies should listen to customers to drive innovation. Even if as a business leader you vastly desire to incorporate AI into your end model, if it’s not important to your customers you will fail and you won’t make a profit.

    There are several ways you can get this feedback from your customer base. Deploying customer surveys, implementing a customer advisory board and meeting with customers in person are great ways to understand if what you are building makes sense for your customers. If your company has a strong channel program, talk to your partners regularly about what they are hearing from customers

    2. Determine if you have the right resources

    It can be tempting to jump on a trend, particularly when the market demands it and competitors are already on board. In 2010, one of the main reasons we decided not to quickly shift from our hardware platform strategy to virtualization was that we didn’t have people in place with the right skill set. Because of that, we knew we couldn’t succeed in virtualization in a way that would have an immediate impact on our customers.

    When a drastic market shift happens, instead of jumping on the bandwagon, put those efforts and resources into training your staff. Many are willing and looking to expand their skill set – in fact, one study shows nearly 75% of employees are willing to learn new skills. Then once you have the right people with the right skills who can help you make an impact, you can turn your focus to innovation. When employees get the right training to gain the skills they need, the business itself will see the benefits.

    Related: Your Company Won’t Grow Until You Follow These 4 Keys to Success

    3. Stay true to your core values

    Remember the core values you established when you launched your company and use them as guiding principles as you make decisions. Nearly all employees agree that a workplace culture grounded in core values plays a critical role in long-term success.

    If the latest trend aligns with your mission, vision and purpose, it could be a valuable addition to your strategy. However, if it doesn’t, pursuing it may not help your company long term. Staying true to your foundational principles ensures that your business remains focused, authentic, and purpose-driven amidst evolving market dynamics.

    When a new trend disrupts the market, navigating a path forward can be challenging. Consider the approach Atlassian took with Rovo. While others rushed to get an AI assistant to market last year, Atlassian was intentional and strategic. It mattered more to them to release a tool that aligned with their mission of making teams more effective than being the “first.”

    Remember that getting it right for the customer matters more than conforming. Oftentimes blindly following the crowd without critical thinking can lead to conformity and a loss of innovative thinking. Don’t lose sight of your mission, vision, and purpose. These values are likely what attracted employees and customers to your organization in the first place, and what will keep them long after a trend has faded out.

    Randall Ward

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  • Why Your Company Needs to Rethink Its Purpose to Acquire Loyal Customers — And Drive More Sales. | Entrepreneur

    Why Your Company Needs to Rethink Its Purpose to Acquire Loyal Customers — And Drive More Sales. | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    Becoming an entrepreneur and creating a company that creates positive change is a dream that has driven ambitious people since the beginning of the modern economy.

    But where do you start? How will you create a meaningful product or service that stands out amid the noise of today’s highly competitive and saturated marketplace? The traditional path of finding a niche and competing on quality or price is no longer enough.

    Today, if you want truly enduring and evangelical customer loyalty, you must deliver an authentic product or service that resonates with customers on an emotional level. It is important to connect them to other people, making them sincerely feel like they are part of something bigger than themselves. In short, you need to start a movement.

    For hundreds of years, social movements have been catalysts for transformative, impactful and historic change.

    Throughout history, they have served as catalysts for profound and transformative change. Dr. Martin Luther King marched on Washington with tens of thousands of supporters as part of the Civil Rights movement. Nelson Mandela’s raised fist upon being released from prison after 27 years became a powerful symbol in the movement that crushed apartheid in South Africa. The women’s suffrage movement fought for a century to get voting rights for women in America. Each one of those historic, world-changing movements was anchored in one unifying and all-encompassing force: purpose.

    Related: Looking For A Business Idea? Start With Your Purpose

    You may be thinking that those historic movements were important, but what does that have to do with business success? What does purpose have to do with business? Study after study shows that you can’t even think about starting a business in today’s economy unless it is driven by a clearly defined, tangible and unique purpose. In doing so, you and your team members will be much happier in the process, as supported by Harvard Business Review and other reporting.

    Purpose is the equivalent of “why”? The “why” encompasses a company’s contributions and impact on the world. It is the company’s reason for existing and the reason they are in business in the first place. Purpose is an enabler, a conduit and a vehicle, fueling the innovation of the world’s economy. Blackrock’s CEO, Larry Fink, says, “Without a sense of purpose, no company, either public or private, can achieve its full potential.”

    Some of the most successful companies have embraced this ethos and are fully rooted in purpose. When we look at Tesla, we may think its purpose is to sell cars, which is part of it. But its stated true purpose “is to accelerate the world’s transition to sustainable energy.” That purpose is what drove the EV car revolution — a global movement that powered EV car sales from 0.4% of the light-duty vehicle marketplace in 2004 to 15.8% in 2023. And while it sparked the EV movement, Tesla continues to be its leader. In 2023, it held 19.9% of the global EV market and is the most valuable car company in the world.

    The highly profitable clothing company Patagonia is another example of a company that started a movement based on its purpose. In 2022, the company, long known for its environmental activism, doubled down on its purpose, which is updated to “In business to save the planet.”

    But it was more than just a statement. With its purpose well defined, Patagonia founder Yvon Chouinard announced the transfer of company ownership ($3 billion in global assets and $100 million in annual profits) to a trust fund, with its dividends going to environmental advocacy organizations. With this bold support of her own movement, Chouinard declared, “Earth is our only shareholder.”

    In today’s purpose-driven economy, identifying that unifying purpose for your company — your north star — is the most critical aspect of starting any business or social enterprise. Purpose-driven companies make more money, have more engaged employees and more loyal customers and are even better at innovation and transformational change.

    Consumers are increasingly supporting businesses that stand on principle. According to Accenture, 62% of consumers want companies to take a stand on important societal issues such as sustainability, transparency and fair employment practices. The demand for authentic and purpose-driven companies is strongest among the younger generations. According to Deloitte, “millennials are driving this societal trend, with 40% of those polled believing the goal of businesses should be to ‘improve society.’” Those who ignore the intersection of business and purpose do so at their own peril, as millennials (those aged 28-43) account for $15 trillion in global purchasing power.

    Related: This CEO Says Prioritizing Purpose Over Profit Is Key to Consistent Growth and Sustainable Profit — Here’s Why.

    As a powerhouse financial company, Deloitte is probably not the first company that comes to mind in thinking of a firm driven by purpose. Yet, it is a strong proponent of the belief that exceptional organizations are led by a purpose. To amplify and advance Deloitte’s purpose, it named its first-ever chief purpose officer and established a Purpose Office. Its goals are to consistently embed purpose in the organization’s strategy and deepen the impact and positive change they are making for clients, people, and communities.

    Trust in a company has long-term benefits by creating brand loyalty and turning customers into advocates for your product. According to Edelman, “trust drives growth. When consumers trust a brand, they are more likely to purchase its products (59%) and stay loyal to and advocate for the brand (67%).”

    A company’s purpose must start at the top. Whether it’s a small business run by a sole proprietor or a major corporation led by a CEO, the leader sets the tone and must lead by example. Employees need to see the commitment to purpose reflected in the actions of leadership; otherwise, the stated purpose becomes nothing more than a catchy slogan that fails to resonate with consumers.

    Infusing purpose into your new venture is not merely a trend but a necessity to compete and thrive in the modern economy. To stand out, foster trust and create lasting connections with consumers — in other words, to build a movement — today’s companies and organizations need to find their purpose and adopt it fully until it permeates every part of their operation.

    By defining and articulating your purpose, you are laying the groundwork to start a business and, perhaps, even a movement. If you do it right, both can build value and help change the world.

    Marc Kielburger

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  • 4 Common Blunders Companies Make When Creating Culture | Entrepreneur

    4 Common Blunders Companies Make When Creating Culture | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    It’s no secret that every successful company needs a solid, identifiable corporate culture. Statistics show that 88% of job seekers believe a healthy work culture is essential for success, and the younger generations now prioritize “culture fit” above all else when job hunting. Unsurprisingly, a strong corporate culture that keeps employees engaged directly translates to as much as a 202% performance increase.

    With such compelling data, it’s shocking how often startups fail in this regard. As a successful CEO and cofounder, here are four common mistakes I’ve seen and how to avoid them in your startup journey.

    Related: Lack of Trust — What Does It Do to Your Company?

    1. Not knowing when to transition from the “tribe” stage and into more structured processes

    My company, Flowwow, is currently in that awkward “preteen” phase where we’re no longer a startup “tribe” but not yet a large corporation. This creates tension because those who have been around since the beginning often romanticize “the good old days” and resist implementing more structured processes.

    Because this is often a challenging phase for brands, many cling to the “startup family” model of everyone doing everything for too long. This can hurt morale, motivation and long-term growth and heighten the risk of a brand stalling out at a critical stage. We tried to avoid this mistake by ensuring our overall mission was tightly aligned with the values shared by every person we hire.

    We ensure everyone feels supported and heard, confirming that everyone understands our flexible and adaptable processes. We also help place each person into a team that best suits their skills and personality so they feel useful, fulfilled and engaged. Remember that the data shows 85% of employees feel disengaged, yet 69% say all they need to feel happier and engaged is acknowledgment and recognition.

    2. Not allowing your culture to evolve with the brand

    Some camps believe brands should stay consistent over time, but we think that evolution according to the market and trends is far better for overall longevity.

    Remember: as your brand grows and matures, so should your corporate culture. As a founder, it’s your job to shift internal and external perceptions about your brand during these transitional times. Your core values should remain the same, but how you act on them makes the difference.

    For instance, when Flowwow shifted from a flower service to a gifting marketplace model, the founder’s job was to not only reframe public messaging but ensure we were highlighting the things most important to us as a brand: openness, transparency and quality.

    By making this our focus, we didn’t need to do anything specific to steer our culture; it naturally evolved from authentically shared values. These principles have remained steady over time, but our “value-driven” actions are more tangible: We provide resources like language learning, mental health assistance and medical insurance to show the team that our values are more than words.

    Related: How to Lead With Transparency In Times of Uncertainty

    3. Neglecting to establish top-down communication

    I’ve heard of many startups that have failed or floundered because the founding team felt they needed to hide hardships or only tell employees what they felt was “necessary.” Often, this is done with good intentions. They mistakenly think it will demotivate or alarm employees to hear about a crisis or difficult road ahead. Don’t fall into this trap! You hired these people because you trust and believe in them, so prove it by being transparent and allowing them to support you and each other.

    When management offers open communication lines, employees feel empowered to take responsibility, bring fresh ideas and make decisions in the brand’s best interests. HBR notes that good communication from senior leadership is a top driver for employee engagement.

    4. Forgetting that the founder is the heart and soul of the brand

    Founders often fall into the trap of playing Superman (or woman): They feel like they need to be involved in everything all the time, usually at the expense of their well-being. Initially, this might be necessary, but a founder’s top goal should be to find and cultivate a core team that can be trusted to take over most of the daily tasks.

    A strong, compelling corporate culture needs an axis on which to turn, and that axis should be the founder. Instill your values into every person you hire, and then let all the things that made you want to hire them shine through. Use your influence and passion to improve, amplify and direct the company. By acting as your team’s safe, trusted harbor, you allow your corporate culture to blossom organically, resonating with both employees and customers.

    It’s vital to avoid letting yourself burn out. You are an example for everyone, so it’s your job to pay attention to your mental well-being and continually work on understanding and managing your emotional impulses. Acknowledge your limits, act within them and let your team see that you’re human. This sets the foundation for a healthy, honest atmosphere.

    Related: How Being Transparent Helps Scale Your Company

    The future of work is now, so don’t let your culture lag behind

    Corporate culture is essential to present and future organizational health and longevity. Watch factors like absenteeism, participation and even body language to get a complete picture of whether your brand’s atmosphere needs work. Remember, a healthy organization balances stability and growth, and lasting improvements must always be top-down.

    Slava Bogdan

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  • 3 Values That Empower Entrepreneurs Just Starting Their Journey | Entrepreneur

    3 Values That Empower Entrepreneurs Just Starting Their Journey | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    Launching a new venture from the ground up can be a thrilling process. Selecting your first workplace, narrowing down your business model and defining a clear action plan are all common exciting experiences that entrepreneurs go through. But even these first steps can present challenges to surpass.

    My first startup was an internet company called Joyo.com, which I co-founded in late 1999. This was in the early days when the internet was still very young and full of undiscovered potential. Joyo’s first three months saw many fierce debates within my team as we struggled to agree on what we wanted our startup to achieve — with so many possibilities available in the internet space at that time, from e-commerce and web portals to travel sites and games, it was tough to decide on the best course of action.

    In such moments, a founder needs to trust in their ability to make hard decisions and stick to them. This kind of steadfast resilience can help guide entrepreneurs through the early stages of a company. So, I finally decided to build Joyo.com as China’s first B2C e-commerce platform at the end of February 2000. Joyo became the largest such site in China at the time and was acquired by Amazon in 2004 and rebranded as Amazon China.

    Related: How to Tap into the U.S. Social Commerce Market Through Millennials and Gen Z

    My second venture, DHgate, was a much more arduous challenge. As China’s first B2B e-commerce platform, it was extremely difficult to prove our business model and attract investment. I discovered how truly cold and heartless the business world can be when we almost ran out of funds just before we launched in 2004. An investor who had signed a contract to fund us suddenly reneged on his promise in the eleventh hour, which meant that I had to turn to my own savings to pay the remaining employees at DHgate, never knowing if that week might be our last.

    Without sufficient funds, we surrendered the office and moved to a 20sqm conference room next to the toilet of a friend’s company. My office chair was broken, but my hope was strong. I was able to find a way to stay focused on the positives and possibilities. Most importantly, I looked inward for strength and confidence in my business.

    Beyond a lack of funding, the biggest problem we faced in the early days was that nobody trusted us. This was back in the mid-2000s when traditional trade was still booming. Nobody believed the entire complex process of international trade could be achieved online. Validating our business model was like running a marathon — a long and challenging ordeal.

    Most entrepreneurs experience win-or-go-home moments like these. Mentally, the early stages can be the most difficult period of building a company. Yet, we persevered, and today DHgate is one of the world’s leading B2B cross-border e-commerce platforms.

    Related: Core Values: What They Are, Why They’re Important, and How to Implement Them Today

    The hardest challenges give the greatest rewards

    Keeping a young company afloat is a daily struggle. Challenges and obstacles come from all directions — you may have to deal with limited access to capital, an undersized and overstretched team, a lack of market recognition in a possibly overcrowded market, and a lack of mass understanding around the business or technology, among other factors.

    Your staff and investors all have lofty expectations, and you must also set high standards for yourself. Maintaining high motivation and energy in the office is a constant challenge, especially when everyone knows you’re feeling exhausted and anxious. This builds an incredible amount of pressure and stress, which rides on the shoulders of founders who already battle self-doubt daily.

    Yet, running your own business can also be incredibly rewarding. Every entrepreneurial journey has its ups and downs; if you can find the right path and persevere through obstacles, you can achieve things that nobody has ever done before, and your efforts can pay off a hundred-fold. These growing pains are worth it for your own personal development, too.

    Related: The 8 Biggest Challenges for New Entrepreneurs

    Strong founders who make it through the initial stages of entrepreneurship tend to have certain key characteristics. New founders may benefit from embracing these three key values or standards to hold themselves to:

    1. Talk to your heart to follow your passions

    Your founding journey will be made all the easier when you are following a dream that you are truly passionate about. As a bonus, you’ll be able to make your team more passionate, too. When facing difficult decisions, talk to your heart for guidance. I have done this many times in my life to help me choose a path that excites my imagination and keeps my interest.

    2. Be brave and dare to do difficult things

    If you listen to your heart, you will hear an answer, and your next course of action will become clear. So, take action! Start looking for opportunities, and you will find them — it is practically inevitable if you look hard enough. As long as you know what your goal is, it doesn’t matter if you don’t see the path from the start. The important thing is to start walking down that road.

    Related: The Top 5 Reasons Why Entrepreneurship is Difficult (and How to Overcome Them)

    3. Be persistent

    Eventually, you will stumble on your path. Everybody does. The key is to celebrate your failures, learn from them and keep moving on. Persistence just requires you to keep showing up daily to pursue your goals. If you listen to your heart and follow your passions, optimism, and confidence in your projects, come much easier. It may sound cliché, but I believe that while it’s not magic at first, steadfast persistence in any goal can create magic.

    Diane Wang

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  • Rapid Scaling Can Hurt Your Company. Here's How to Avoid Disaster. | Entrepreneur

    Rapid Scaling Can Hurt Your Company. Here's How to Avoid Disaster. | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    According to Goldman Sachs, the economic stage for 2024 appears to be a bullish one, as it predicts an annual global GDP growth of 2.6%, which should buoy spirits if you’re a leader hoping for happy returns. Be careful, though: Growth and scaling aren’t always synonymous. If you have unrealistic expectations when it comes to the latter, you could well hamper the results of the former.

    The simple fact is that the vast majority of companies don’t have an unlimited capacity to scale. At some point, rapid and unchecked growth can cause them to buckle and break in operation and logistics, which upends vision, brand and broader intentions.

    At EOS Worldwide, we have a cultural ethos that everyone should fight for the greater good, which is seen in our core values, as well as in our focus and marketing strategy. Everyone moves forward because of that shared vision and care. And the payoffs go far: Team members feel confident in their purpose, as well as empowered because they know they’ve been chosen specifically for a unique set of talents. Scaling happens naturally as a result.

    Related: 7 Ways To Scale Your Startup or Business

    A solid foundation-vision

    Among the critical considerations in avoiding overextension is determining which pace is uniquely right for you, certainly, but also that your vision be more than words.

    Begin with a documented “North Star” concept to be embraced today, tomorrow and far into the future. Make it at once compelling and clear, and be certain that it resonates with all team members. If behaviors among some staff members aren’t aligning, for example, it might well be that vision training hasn’t been sufficient. This can be frustrating as you start to scale, which makes it an absolutely critical step.

    Keep in mind, too, that instilling a vision effectively isn’t cheap in any sense: it means investing money, time and energy, and you might have to give up some efficiency in the process. There is, after all, an inherent inefficiency in driving toward a shared goal, because you need to make room for creativity and exploration.

    Your vision also needs to be protected. It sets core values, and so it’s vital to avoid bending or breaking it in order to attain scaling ambitions. For example, one of our company’s core values is to “do the right thing.” Sounds disarmingly simple, but we make a point of following through on it via another core principle: “helping first.” This means that we train our teams to give without expecting anything in return. Again, this isn’t always efficient, but it keeps us grounded and consistent.

    Related: Core Values: What They Are, Why They’re Important, and How to Implement Them Today

    We’re still scaling, to be sure, but simply aren’t willing to sacrifice purpose, or to stray outside niche or core competencies. Consequently, our 10-year growth target is doable, because it has just enough dynamic tension to keep everyone stretching toward an ambitious objective while also having the right amount of “give” so the challenge doesn’t break everyone.

    Has your company lost its way in an effort to scale without restraint? Then consider putting the following measures in place:

    1. Break big “Rocks” into smaller ones

    You likely already have one-, three- and 10-year targets. Perfect, but to make sure you’re moving in a steady and manageable direction, my suggestion is that you create something analogous to what we term at EOS Worldwide a 90-Day World™ and individual “Rocks” (objectives) therein. It’s a structure specifically designed to mark each quarter-year contribution towards annual goals and has resulted in measurably greater success.

    Your version might include giving every team member a weekly scorecard that includes key tasks towards meeting 90-day expectations. It’s then the responsibility of managers to work to ensure employees are hitting scorecard numbers — making progress toward personal and company objectives. This process also keeps an organization from scaling too fast, as it’s a form of reverse engineering that starts with a broader vision: Nothing can suddenly get added (like a new product line) that doesn’t mesh with that mission focus.

    2. Make sure you’ve got the right mix

    Every person has two roles at work: the one they play today and the one they’ll play in the future. However, you can’t just scale big and hand out dozens of promotions in a year, or teams wind up feeling overwhelmed and unprepared.

    So, employees need to be given the capacity, time and energy necessary to grow. For example, say you’ve mapped out an accountability chart that anticipates the staff knowledge and expertise you’ll need in one year or three years. Is the current team going to be the one to executive effectively? Do they have the capacity and resources?

    Knowing the answers to these questions early means you can prepare accordingly, which might or might not include rearranging a team. In a 2021 survey, the Pew Research Center revealed that a stunning 63% of workers were ready to leave their employers because of a lack of promotional opportunities. This means that if you’ve hired the wrong people and can’t provide advancement, you owe it to them to either find a way to upskill or say goodbye in a respectful and responsible way that aligns with your vision.

    Related: Builders and Boosters — A Leader’s Guide to Forming a Resilient Team

    3. Let culture evolve organically

    Another pitfall of scaling too quickly is an inability to maintain a preferred culture. To avoid a forced or brittle atmospheric shock during robust growth, it’s pivotal to treat company culture with intention, and patience.

    Consider Starbucks and its scaling challenges, detailed in part in a Branding Strategy Insider article. It’s a powerhouse now, but it hit growth boundaries the hard way. For the first couple of decades, growth was modest, then came a flexion point where the company added 200-plus locations annually. As its former CEO, Howard Schultz, explained in his 2012 book, Onward: How Starbucks Fought for Its Life without Losing Its Soul (Rodale Books), the business scaled so quickly that it broke its ability to properly service customers. Their people could no longer create or control the desired experience, and the culture suffered. Fortunately, the now-35,000-plus-location colossus made this realization early and righted the ship.

    Related: 3 Ways To Invest In Coffee, Other Than Drinking It

    Infinite scaling may sound like the fast track to profitability, but it’s a unicorn dream: Don’t fall for that temptation. Instead, plan growth based on vision, people and culture. You’ll then operate with thoughtful restraint and be faced with fewer preventable problems.

    Mark O'Donnell

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  • What It Takes to Build a Best-In-Class Company | Entrepreneur

    What It Takes to Build a Best-In-Class Company | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    More than 5 million businesses were created in the U.S. in 2022. What makes the true industry giants stand out in a world of fierce competition? What separates an average company from a top-tier organization that’s successful and pivotal in shaping the future?

    Drawing upon 20-plus years as an entrepreneur, during which I’ve witnessed numerous businesses rise and fall, I’ve gathered insights into critical factors that differentiate outstanding enterprises from the rest.

    Let’s dig into the essential elements that elevate a company to best-in-class status, exploring how ethical conduct, innovation and social responsibility are admirable goals and vital drivers of success.

    Related: How to Take Advantage of Your Underdog Status and Conquer Industry Giants

    Ethical practices: A foundation of excellence

    When we talk about ethical conduct in business, we’re not just checking boxes to comply with laws and regulations. We are establishing a compass that guides our companies’ actions, shapes culture and dictates how we interact with stakeholders. In a time when trust can shatter like glass and reputation is everything, integrity is the foundation upon which best-in-class businesses are built.

    In my enterprises, I’ve learned that cultivating a culture that values doing the right thing, even when it’s tough, is critical. This means creating an environment where your team feels empowered to make ethical decisions, with you leading by example. Weaving ethics into your company’s DNA increases credibility, fosters trust and boosts profitability.

    And here’s the magic: When customers and clients trust your company, they become loyal advocates, bolstering your reputation and driving sustainable growth through word-of-mouth referrals. Ethical practices also attract socially conscious investors, further boosting your company’s financial health.

    To establish and strengthen ethical practices:

    • Create ethics and values statements as a team and share them internally and externally.
    • Incorporate your ethics and values into your brand messaging, recruiting, and training materials.
    • Embody these in your conduct as a leader and organization.

    Related: More Than Just A Moral Compass: The Power Of Ethical Business Practices

    Pioneering business practices

    Innovation isn’t confined to new technology and cutting-edge software. Best-in-class companies view innovation as a continuous pursuit of creative solutions to problems, whether in your products, services, how you treat team members or the processes that drive your business.

    Innovation isn’t just a buzzword; it’s a significant driver of profitability. A recent McKinsey & Company study found that companies embracing innovation enjoy a substantial performance edge, outperforming their peers by a staggering 2.4 times in economic profit.

    Nurturing innovation doesn’t only mean hosting grand brainstorming sessions; it involves having a company culture where every team member feels empowered to contribute ideas regardless of their title.

    It centers on embracing diverse voices and perspectives, encouraging experimentation, and seeing failure as a stepping stone to success. Best-in-class companies are pioneers who establish themselves as thought leaders in their industry and push the boundaries of what’s possible.

    I learned these principles early in my business career through observing successful companies and leaders. After a few years of ideation and experimentation, I found what worked for my leadership style and industry. Today, I’m still trying new things and paying close attention to results and the feedback of my teams, clients and other stakeholders.

    Which approaches to innovation will work for you? You’ll only discover by jumping in fearlessly and getting creative.

    To leverage innovation in your business:

    • Look for opportunities to improve efficiency, productivity, and results.
    • Include your leadership and frontline teams in planning from the start.
    • Talk to clients, investors and other stakeholders to gather unique perspectives and discover new ideas.
    • Due your due diligence: Study a variety of strategies and solutions.
    • Take risks (measured) — don’t be afraid to disrupt the status quo.

    Related: How To Use Entrepreneurial Creativity For Innovation

    Leading the charge for positive change

    To be a best-in-class company, you can’t shy away from taking on significant challenges.

    This means fully embracing environmental, social, and governance (ESG) principles and addressing critical concerns such as sustainability, reducing your carbon footprint, promoting employee wellbeing and engaging with the community.

    It has become evident that stakeholders want, need and deserve a business approach that aligns with their values and addresses pressing global concerns.

    A recent study revealed global investors are increasingly focused on ESG issues in their investment strategies. Roughly 89% of investors considered ESG issues in some form as part of their investment approach in 2022, up from 84% in 2021.

    Equally vital is the commitment to diversity, equity and inclusion (DEI). Companies that prioritize diversity and inclusion not only contribute to a more equitable society but also reap the rewards of being able to tap into a variety of perspectives and ideas.

    When you demonstrate an unwavering commitment to positive change, you enhance employee engagement and elevate your brand’s reputation, resonating with socially conscious consumers and investors.

    To become a more conscientious organization:

    • Listen to your stakeholders and the public to learn what’s most important to them.
    • Research more into what comprises ESG and DEI initiatives.
    • Hire professionals or retain consultants with relevant expertise.
    • As with ethics, share these values across your organization and let them guide your actions.

    Related: Why ESG-Conscious Companies are Resilient Companies

    Standing the test of time

    Success goes beyond the bottom line; it hinges on a relentless pursuit of excellence. Best-in-class companies understand this truth.

    They thrive by integrating ethics into their DNA, prioritizing innovation, and leading positive change by adopting ESG and DEI initiatives.

    Through these pillars, they enhance profitability, but more importantly, create a lasting positive impact that solidifies their best-in-class status, setting a high standard for all who follow.

    Robert Finlay

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  • How Crafting a Story Helps Founders Define Their Mission and Values | Entrepreneur

    How Crafting a Story Helps Founders Define Their Mission and Values | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    According to Builtin, 46% of job applicants place a high value on company culture, and 47% cite their current work culture as the main reason they’re seeking new jobs. Corporate values influence company culture, which is now one of the most critical aspects of employment.

    Founders should be focused on their mission and vision from the ground up. This also helps them understand themselves better and “find their why.” This purpose then spreads across the company under their umbrella and leads the way for others to feel fulfilled at work.

    Related: The First Time We Tried to Define Our Company’s Core Values, It Failed. Here’s What We Did Differently the Second Time.

    Your story strengthens your values, which strengthens your brand

    The ability to understand and articulate your values helps you understand yourself deeper. It’s something that takes thought, introspection and time to work through. You can’t simply decide on a brand story and build your values around it, nor can you arbitrarily pick values that you think will “sound good” and use them as a basis for your story. You will soon find out that does not work out.

    While it is common that founders must figure out their mission before they share their story, it can work vice versa: Sometimes speaking to a media coach or mentor helps founders understand themselves and flesh out the details of their mission and story. In fact, even talking to the right journalists who ask good questions can be helpful for digging deeper into the roots of who you are and what you want your company to be.

    It’s worth the time and effort to define your personal values and let that be what influences your corporate mission and story. By infusing these essential parts of yourself into your brand, you’re weaving something that resonates as authentic and meaningful into the foundation of your company. Then, when you’re speaking to the media, potential customers or a new team member, your passion and sincerity will be what they pick up on.

    Values are dynamic: Don’t shy away from evolution and growth

    Many people believe they must cling to a single set of values for their entire lives. Otherwise, they will be perceived as unreliable, untrustworthy or even betraying themselves or their families. The same can be said for businesses, too.

    However, research supports that it’s normal and healthy for values to change and adapt over time. For instance, what was important to you as a child may no longer hold the same value as an adult. Or an opinion formed as a teen might not hold up to your lived adult experience. The priorities you have as a single person are likely to shift when you become a spouse or parent. In every instance, it’s reasonable for these value shifts to happen, and nobody would be able to make a serious argument that it was “bad” or “wrong” to make these changes.

    In the same vein, the values your company starts with may be different from the ones that serve your goals in a year or three years’ time. Yes, there will be thematic similarities, just like a founder’s personal values will share common threads reflective of their individual identities. An evolving mission is a healthy part of your brand’s storytelling.

    The ability to revisit, modify and live out each new iteration of your values is also an integral part of your story. This kind of honesty and transparency shows that you, as the founder (and by extension, the company), are willing to embrace vulnerability, be open to change and stand up for what you believe is right. This is a particular type of strength that only a small number of brands — and people — can claim to possess.

    Related: Core Values: What They Are, Why They’re Important, and How to Implement Them Today

    Telling your brand’s story is telling your story, so make it count

    In his own talks about values, Mark Manson, author of the bestselling book, The Subtle Art of Not Giving a F*ck, notes that “we are defined by what we choose to find important in our lives.” This is equally true in business. What founders value most will be reflected in their mission and values and will become inextricably woven into the tapestry of the brand’s story.

    Our values are fundamental to our identity, and our identity (aka your brand story in a capitalistic world) is what draws people to us. The more authentic and aligned with reality your brand story is, the easier it will be to grow your company and employees that will help you thrive.

    Related: How to Develop a Company Vision and Values That Employees Buy Into

    Anastasia Chernikova

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  • A Step-by-Step Guide to Achieving Organizational Alignment | Entrepreneur

    A Step-by-Step Guide to Achieving Organizational Alignment | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    As a CEO, you put valuable time and effort into mastering your business strategy. It shapes your business structure and operations by providing life to your vision, purpose and values, driving the way you work.

    But no matter how solid your strategy, it’s only impactful if every team member is onboard, in sync and focused on the most important things.

    In my experience, achieving organizational alignment starts with me as the leader. The only way to do it successfully is from the top down.

    Related: ‘The Alignment Factor’: The Keys to Internal Alignment

    Why is organizational alignment important?

    Organizational alignment means that all employees have clarity about their roles and responsibilities, specifically in regard to how they contribute to the company’s success. It involves creating a sense of purpose and clarity around the individual tasks that they do each day.

    A business cannot scale without top-down alignment. The key is to create a unified front of team members working harmoniously toward the same goals.

    Achieving organizational alignment requires deliberate action and a systematic approach. Here are the key steps that CEOs can follow to build organizational alignment within their companies:

    Step 1: Build the right team

    Hiring the right people for the right roles may seem obvious, and yet so many companies get it wrong. Companies often hire people based on experience and skillset alone, but they forget about another incredibly important factor: culture fit.

    Should culture fit be the top priority when it comes to hiring? Probably not. But nonetheless, it can’t be disregarded because it has a high impact on organizational performance. Having people on your team who believe in and agree with your company values is critical to moving the organization forward. If an employee’s values are not in line with those of the company, they won’t be motivated to contribute to achieving the mission, and therefore, they are more likely to underperform.

    Step 2: Rally the team around a shared purpose

    Your purpose must resonate with all other foundational aspects of your business — vision, mission, etc. All team members should know, understand and commit to upholding the company’s purpose. It’s important to consistently remind team members of the “why” behind their daily work to maintain motivation. Attributing each goal to achieving a larger mission helps keep the larger mission in sight, even when narrowing it down to individual tasks.

    Step 3: Set and track collaborative goals

    With the broader strategy in place, break down the overarching goals by teams. Here you can enlist the help of your management team to break down the goals further into individual roles.

    In order to set and track goals properly, you must be on board with establishing a culture of transparency and accountability. Being transparent about individual responsibilities ensures that no two team members are stepping on each other’s toes, and everyone knows who is working on what.

    Furthermore, all employees should know how their teammates are progressing on targets. Making this data visible encourages team members to hold themselves and each other accountable. When employees encounter roadblocks, they should know who to approach for guidance and support.

    Consider using OKR software tools for optimal goal management.

    Step 4: Implement good communication habits

    We know that communication is often the root cause of workplace failures. It’s essential to not only strengthen the communication skills of your team members but also to establish systems and processes that will streamline effective communication.

    Teams should have daily stand-up meetings, also called huddles. Daily huddles are quick meetings structured to include updates on goals to keep everyone in the loop on the team’s performance. Managers should also have consistent one-on-one meetings with their direct reports to review targets on a more in-depth level and facilitate effective communication between managers and employees.

    In addition to tools like Slack and Zoom, you may also consider adopting an integrative workspace system with communication capabilities to streamline conversations.

    Related: Why Aligning Your Company Values is Crucial for Long-Term Success

    Step 5: Encourage teamwork

    By having employees work together to achieve goals, you yield better collaboration and faster results. Employees bring diverse perspectives, skills and experiences to the table, which can lead to innovative solutions and improved efficiency.

    In addition to being proven to boost morale, promoting teamwork in the workplace reinforces the concept of working together to achieve common goals, promoting alignment among team members.

    6. Focus on employee engagement

    Employee engagement is a key indicator of business performance and alignment. It’s important to consistently show appreciation to your employees and remind them that their contributions are meaningful.

    Consider using culture-building tools, like surveys and the Employer Net Promoter Score (eNPS), to gauge how well your culture is performing. These tools measure workplace engagement and satisfaction and can also provide insights into how employees perceive their work’s impact on the company’s mission, vision and values. By addressing any misalignments, CEOs can strengthen organizational alignment and improve performance.

    The common theme among all these steps is that they all involve the team. I would argue that in any successful organization, your people are your best asset. Refining, empowering and driving forward employees falls on the shoulders of the CEO. This is why it’s critical to get every step right and ensure you are actively working toward strengthening your team at its core.

    An empowered and aligned workforce is a productive one, and as the leader of the team, it starts with you.

    Related: How To Align Your Company Goals To Breed Success

    Doug Walner

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  • Core Values and Practices Are Booster Fuel for Your Business. Here’s How to Establish the Right Ones. | Entrepreneur

    Core Values and Practices Are Booster Fuel for Your Business. Here’s How to Establish the Right Ones. | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    As a long-time strategy consultant, I learned early on in my career that if I wanted my clients’ businesses to succeed — financially and otherwise — then I had to first help them clarify and strengthen their business culture. This idea is backed by Peter Drucker, one of the most prominent management consultants of all time, when he said, “Culture eats strategy for breakfast.”

    Culture, however, is a pretty amorphous idea. It’s sort of like love. You know what it feels like but it can be a hard thing to describe and/or know how to build. That’s where your business’ values and practices come in.

    Values and practices clarify how your team thinks and acts and serve as the bedrock of your company culture. Capturing, communicating and living a succinct and well-defined set of values and practices is pure gold that directly leads to:

    • Increased efficiency
    • Better decision-making
    • Improved communication
    • Managed expectations
    • Stronger productivity
    • More effective hiring practices
    • Greater profitability

    Here are some time-tested ideas about both creating values and practices and how to best implement them.

    Related: Core Values: What They Are, Why They’re Important, and How to Implement Them Today

    Values vs. practices

    Values and practices are similar in that they both are meant to describe the ways that you and your team think and act. However, values are more general and lofty while practices describe practical and specific actions.

    Below is a brief list of some values and practices that will help you differentiate between the two.

    Values

    • Accountability
    • Collaboration
    • Inclusion
    • Make it happen
    • Keep it simple
    • Not bound by convention
    • Persistence
    • Teamwork

    Practices

    • Clear out email once per week
    • Express gratitude and appreciation
    • Invest in your professional growth
    • Leave meetings with clear next steps
    • Practice financial transparency
    • Seek first to understand
    • Serve while selling
    • Set outcomes-based agendas

    As you can see, some of the values are only one word and others are short phrases; either way works. Also, note that each of the practices begins with a verb to make them active.

    Related: Do Core Values Still Matter Today?

    Some key tips for establishing values and practices

    There are a variety of ways to establish and implement your ideas, but the most important thing is to focus on values first. Once you’ve created a set of values then you can move on to identifying your practices. It can be a bit much to tackle both at the same time, but your values can help inform your practices.

    Resist the temptation to list all of the values of your business. What you’re seeking are four core values that are especially unique to your business. You’re looking for non-negotiable qualities of your company and culture that differentiates you from others in your space.

    You want to keep your list of practices to a manageable size. I recommend having 10 practices. Because practices are much more specific and tactical, having a larger list than your values is fine.

    When eliciting potential values and practices, ask your team for advice. Ask them about a staff member who represents what is best about your business. What are their core qualities? What do they do well? Alternatively, ask them to think of some former staff members that weren’t a good match for your company. What were their qualities and/or work habits that made them a mismatch for your culture?

    Related: 4 Reminders To Help Define Your Company’s Values

    Implementation and revision

    After creating your values and practices, don’t let them collect dust! Determine how you can apply them to daily operations so they stay top-of-mind and have a better chance at guiding the creation of your business culture. Here are some examples:

    • Share your values internally and externally. Being upfront about your values builds trustworthiness and long-term relationships with your team and customers. Post your values and practices into any company-wide publication such as your strategic plan, employee manual, business cards, posters for your office, meeting agendas, your website and even marketing materials.
    • Clearly communicate your values and practices during onboarding and training processes.
    • Make sure your management team is also embodying these values and leading by example.
    • Use your values as a filter in your hiring processes. Asking interview questions that relate to your values enables you to make more informed decisions when hiring. For example, if you have a value about teamwork, ask a candidate what role they usually play on a team or ask them to provide examples of a team failure or success they have experienced.
    • Celebrate your values. At my company, we set up a simple way for all employees to submit a video or text message of praise for anyone they see living out the values of our business. When we first started doing this, we required all team members to do this once a month with the hope that it would become ingrained in our culture. We then highlight these “shoutouts” during team meetings.
    • Get regular feedback from your team. We do this by sending a quarterly culture survey to our team. The survey asks them questions to determine if the values and practices are clear to them. It also asks them to rate which values and practices are most beneficial to the team and to their work. After collecting survey results, we meet as a team to discuss our values and practices.

    As you implement your values and practices, you’re going to learn about what works and what doesn’t. As such, be prepared to revise them. At my company, we have a solid set of values and practices that we spent a fair amount of time creating. But as our business evolves and we bring on new team members, we revisit the values and practices and revise them as needed.

    Eric Ryan

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  • Adopting Business Value Does Good & Makes You More Money | Entrepreneur

    Adopting Business Value Does Good & Makes You More Money | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    In the past, society broadly — and entrepreneurs specifically — tended to embrace the capitalist rubric of “profit at all costs.” However, growing income inequality and increasing awareness of sustainability and employee well-being are fueling real change. Increasingly, altruism offers a better path for leaders to build resilient, future-proof enterprises.

    Here’s how.

    Words people first associate with for-profit structures likely don’t include altruism. On the contrary, the average person might offer diametrically opposed qualities, like greed and avarice. Unfortunately, this perception often perpetuates a dog-eat-dog culture, and the plain truth is that finding ways to embrace altruism as a core business value can fuel both broad societal good as well as revenue.

    A tale of shifting values

    People’s frustration with greed is growing, and they’re expressing it in various ways. As reported in a 2021 article in The Washington Post, employee loyalty is at an all-time low, reflective in part of the fact that the average worker typically receives little more than a paycheck in exchange for work. Largely gone are the days of fringe benefits, pension plans and generous vacation time allocations.

    Moreover, anxiety about growing economic inequality is increasing. Wealth disparities in countries like the U.S. are greater than ever, leading populations to face the possibility of their children winding up worse off than they are. In response, people are starting to think more broadly and deeply about how companies’ values reflect their own.

    One result of this is the growth of a new economic segment: the socially-conscious consumer. Among other qualities, these people think about the concept of wealth in wider terms than the simple accumulation of material things and are increasingly demanding that employers reflect this outlook. A remarkable 2022 Qualtrics survey found that 56% of respondents “…wouldn’t even consider a job at a company that has values they disagree with, while a 2020 CNBC/Momentive survey found that “40% of workers say they would likely quit their job if their organization took a stand on a political issue they do not agree with.”

    In other words, we’re witnessing the growth of altruism in the business world from the ground up.

    Related: 18 Business Leaders on Creating an Inclusive and Equitable Society

    Turning altruism into an advantage

    Entrepreneurs have much to gain from making a practice of disinterested and selfless concern. In doing so, they can generate tremendous value within companies, enhance employee loyalty and engender public trust, gaining significant advantages over firms still prioritizing the bottom line above all else.

    Here are a few ways to make it a core business practice:

    • Prioritize employee well-being: A business that puts staff members’ needs above its own is more likely to have loyal employees that demonstrate altruism themselves, according to a 2022 report by the Research Journal of Management Practice. This could be achieved by providing paid leave during significant life events — extending beyond maternity and paternity leave to cover unexpected lapses in childcare coverage, as well as caring for a sick family member or attending to the mental health of a loved one. Offering remote work options can also help gain employee trust.
    • Build value-based business connections: Entrepreneurs might be wise to consider a policy of only doing business with firms that share their values, extending this approach to the way they connect clients with trusted partners. This arrangement can be mutually beneficial, even if it means choosing a partner that costs a bit more. Building industry partnerships based on shared beliefs rather than rote costs can lead to more sustainable and meaningful connections.

    Embracing an altruistic future

    Our world is already changing, with consumers, employees and the general public demanding more from companies. Entrepreneurs can embrace this change and use it to build entities that stand the test of time. “Doing well by doing good” has the potential to not only produce financial success but also create a more fulfilling and meaningful entrepreneurial journey — with benefits that include increased employee loyalty and public trust, as well as a growing market of socially-conscious consumers.

    Here are some additional strategies for integrating this spirit into entrepreneurial ventures:

    • Embrace corporate social responsibility (CSR): CSR initiatives that address social, environmental and economic issues relevant to your industry and community not only actively contribute to the well-being of society and the environment, but also demonstrate a business’s commitment to altruism, and will foster goodwill among customers and stakeholders alike.

    Related: Corporate Social Responsibility Can Actually Be a Competitive Advantage, So Where’s Your CSR Program?

    • Encourage a culture of giving back: Promote volunteerism and philanthropy within your organization by offering employees, say, paid time off for volunteer work, or matching their charitable donations. Such a culture can enhance staff morale and strengthen a company’s reputation as a socially responsible enterprise.
    • Practice transparent communication: Be open and honest with employees, customers and stakeholders about business practices, goals and challenges. Transparency fosters trust and demonstrates a commitment to ethics. So, share your successes and setbacks in implementing forward-thinking policies, and use the resulting feedback to make improvements.
    • Create an ethical supply chain: Work with suppliers that share your commitment to altruism, ensuring that they adhere to ethical labor practices, maintain sustainable operations and minimize their environmental impact. This can create a positive ripple effect that benefits all parties involved. A Business of Sustainability Index by GreenPrint revealed that 68% of Americans are willing to pay more for sustainable goods and otherwise support eco-conscious companies.
    • Measure and report on your impact: Regularly assess and report on the social, environmental, and economic impact of your business practices. By quantifying progress and sharing results, you showcase a commitment to altruism and inspire others to follow suit.

    Related: 3 Keys to Developing a Sustainable Supply Chain

    Chris Porteous

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  • 3 Keys to Leading Teams During a Time of Divisive Opinions and Tension | Entrepreneur

    3 Keys to Leading Teams During a Time of Divisive Opinions and Tension | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    Gone are the days of avoiding politics and religion at the dinner table. Today, we often wear our opinions and beliefs on our sleeves, and divisive views dominate the news. Employees are increasingly vocalizing their support or dissent for various causes and issues and expecting their places of work to take a stand. With a major election occurring next year, and tensions sure to arise throughout the process, now is the time for you to invest in your company’s cultural foundation so that no matter the circumstances, a team’s cohesion and productivity aren’t collateral damage of the election cycle.

    This climate can be treacherous for business leaders trying to unite teams toward productive goals. Employers who stay quiet or whose views land on an unpopular side of the debate risk sparking discord — in fact, 40% of workers would consider quitting their job if their leader took a stance they disagreed with, according to a recent CNBC|Momentive Workforce Survey. Oftentimes, though, quiet can be misconstrued as well, or worse, become a void filled by others’ opinions that may not be in the best interest of the business.

    We all want to experience psychological safety in the workplace and have the opportunity for our opinions to be heard. If your employees trust that the organization and team have their back, they’ll be more willing to collaborate and pull together. This begins by walking your talk — address your employees’ concerns, lead “fireside” chats where your door is open to anyone from any level or send thoughtful and well-constructed emails that acknowledge the turmoil affecting your teams.

    Related: How The Best Executives Show Leadership in Times of Uncertainty

    If you can find ways to balance the differences and unions within your teams, you can discover that a business can be a beautiful example of diversity, an antidote to the echo chambers we find online and a real opportunity to understand others. Here are three ways that you can start being more proactive about the tough conversations in your company and build a strong foundation to weather combative times:

    1. Set clear cultural values from the start

    The combative atmosphere around business values may encourage you to take a neutral stance on everything, but staying quiet won’t stop gaps from forming. Instead, you want to be proactive like Salesforce about creating shared values that build a culture of trust and respect for individual beliefs. Since 2015, Salesforce has been public about its moves to make pay within its workforce more equitable and has spoken out against discriminatory legislation.

    For strong cultural values to exist within your organization and have alignment between all employees, you have to start from the beginning for a consistent experience. When new hires arrive, welcome them with a transparent conversation about what behaviors are expected that reflect the company values and how commitment to these behaviors plays a critical role in the company’s success. Also, invite them to call you out if they don’t see those values in action so they know that no one is exempt from these values.

    While having discussions about culture can be challenging, it will be much easier and healthier to have conversations now instead of when something goes wrong. Set expectations from the beginning of your working relationships (or as soon as you can). When trouble arises, you’ll already have a shared language to tackle it.

    Related: Why You Should Care About Psychological Safety in the Workplace

    2. Remind one another of what makes you you

    Create a shared culture, but don’t ignore differences either. Your differences make you unique as a group of people and as a business. What’s more, your differing views can fuel creativity and growth and helps you to connect with a wider audience.

    When acknowledging differences as a leader, it’s important to remember that not every moment is ideal for these conversations. Again, a good rule of thumb is to be proactive about these discussions rather than waiting for a misunderstanding to arise.

    Set aside time to get to know each other better. Ask your teams what differences they bring to the table and give them a chance to educate you on the best language to use when talking about those differences.

    3. Rally toward a common cause

    Twice a month, I send out Friday emails to my team to discuss recent events and double down on our shared purpose. With the media leaning more heavily on divisive language, I choose to talk about shared aims and challenges, so the team can remember that we have more in common than we may initially think. In a recent email, I ended by writing: “I look forward to sharing stories as we seek out those commonalities in places we may have overlooked in the past. Just like our acts of kindness create a ripple effect, our search for and celebration of commonality can do the same.”

    Related: How to Turn Company Values Into Shared Employee Beliefs

    Despite differences, shared beliefs can be central themes in your team’s narrative. If things get hairy in the political world, you can rest on these shared beliefs, using them to lean on as you talk about dissimilarities. What could your shared purpose be?

    Since I began sharing more of my full self with my team, they have begun to reciprocate, creating a highly empowered and trusting culture. The best path toward building an empathetic culture lies in your hands and is cultivated first and foremost through your modeling and behavior. Ask yourself what is your behavior? How does your team feel after interactions with you?

    If you are truly and authentically empathetic, your team will learn to do the same. It becomes a cultural norm. And the business will attract the type of people who can help that culture flourish exponentially.

    Kristen Sieffert

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  • Entrepreneur | 4 Reasons Values Matter So Much in Business

    Entrepreneur | 4 Reasons Values Matter So Much in Business

    Opinions expressed by Entrepreneur contributors are their own.

    There’s a cynical and quite popular view about business, to the effect that it’s “all about the money.” You hear from inside the business world (sometimes in popular expressions like “greed is good” or “business is business”) and outside of it (from people who believe there’s something inevitably selfish or aggressive about business).

    While this view does describe a slice of reality, it’s ultimately reductive and incomplete. The bigger picture is more complex and nuanced.

    To be successful over the long run, a business must continuously deliver benefits to a series of stakeholders. Investors and employees, partners and clients, vendors and even governments: all must benefit from the continued existence of a business to keep contributing to its growth and flourishing. Keep penalizing any one of these constituents, and the natural karmic wheel starts turning, creating losses and offsetting gains in ways both visible and not.

    So, how do successful businesses keep this web of interlocking interests tightly knit? Financial incentives undoubtedly play a part. So do opportunities for engagement and personal growth. But there’s also something deeper. Something that plays to people’s sense of identity and fosters trusted, long-term relationships. Enter values.

    Related: Why Core Values Are So Important and How to Implement Them

    In their simplest form, values are basic principles that favor some goals, attitudes and actions over others. A value practiced by a person or group becomes a virtue of that entity. A team of 40 psychology researchers has identified six core virtues that exist in virtually all cultures: wisdom, courage, empathy, justice, temperance and transcendence. In the world of organizations, classic examples of values are Bridgewater’s radical transparency, the Navy SEAL Ethos and Band-Aid’s standards of safety.

    To serve their purpose, values impose preferences and priorities. They mean that when faced with trade-offs, you systematically prefer some options and choices over others. A bunch of nice words that claim to value everything good equally is not the same thing as a set of authentically held core values. Values imply commitment, sometimes even sacrifice.

    Jim Collins, the best-selling author of Good to Great, has spent decades studying the DNA of successful businesses. His team has combed through mountains of data to complete their evidence-based comparisons. On the other end of this analysis, Collins writes that there is but one non-negotiable element for any business that strives for greatness. It isn’t a trendy strategy, insight or hack. It’s something that sounds a bit old-fashioned but that the data shows is much more important: A company must have a set of core values that do not change.

    Here are four reasons why values matter so much in business:

    1. They help define culture

    Culture is about much more than office swag, perks or dress-down Fridays. It’s made up of all the elements that make the reality of a business coherent to its stakeholders — from the factors that truly drive its decisions, to its policies and work modalities, all the way down to team dynamics and the tone that people use to interact with one another. In elevating some goals over others, values provide the settings that define a work culture. Silicon Valley is known for a more relaxed work environment and collaborative work methods, both of which are conducive to creativity. Wall Street law firms are more buttoned up, valuing prudence and discipline to established standards more highly. Each culture works in its own way and is upheld by a different set of values.

    2. They cement relationships

    Relationships are built around shared expectations of future behavior. When these expectations are met, mutual trust builds over time, justifying higher levels of joint commitment. A set of shared values creates benchmarks for behavior and dispute resolution. Research shows that an adopted value becomes a reliable indicator of future behavior. For example, one study found that the correlation between honesty scores across situations is greater than the correlation between cigarette smoking and lung cancer. Since authentically held values are so helpful in predicting behavior, it’s no wonder they’re a critical component of quality, long-term relationships.

    Related: The Power of Having Core Values

    3. They coordinate efficient decision-making

    Leaders often don’t have the bandwidth to micro-manage every decision. With a clear set of core values in place, stakeholders can better determine which options and choices are preferable on their own. Values provide heuristics — decision-making shortcuts — during times of uncertainty or compressed deadlines. Decisions can then become more decentralized and efficient while staying true to a company’s long-term goals and identity.

    4. They sustain a company’s mission

    A mission or purpose can set the overall direction of a business, but values are the vehicles for how it wants to get there. Research suggests that companies with a sense of purpose tend to grow faster than those without one, but purpose alone isn’t enough. A set of core values that are congruent with the broader purpose of a company gives shape to the journey.

    For all the usual emphasis on words, however, values ultimately come down to actions. Otherwise, nice words on paper inevitably turn to confusion, cynicism and chaos. For this reason, one value perhaps lies at the center of all others: the value of integrity. Integrity means the authentic alignment between words and actions. There’s a fine line between genuine confusion with moral uncertainty and paying values mere lip service, carrying them out only when expedient. Human beings are usually smart enough to tell the difference, especially over longer stretches of time.

    In short, values can provide businesses with a key combination of structure and flexibility to achieve their many goals. If your business hasn’t established or fleshed out its own core values yet, you now have a deeper understanding of why they matter so much. So, ensure that yours are authentic, unchanging and maintained throughout your organization.

    Related: 3 Steps to Establish Authentic Core Values

    Frederick Pinto

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  • Entrepreneur | How to Create a High-Impact Company With a High-Impact Purpose

    Entrepreneur | How to Create a High-Impact Company With a High-Impact Purpose

    Opinions expressed by Entrepreneur contributors are their own.

    Purpose at work is crucial if you want to love your job and have a meaningful career. I know this to be true from experience. Before I came to work at StoneAge, the global manufacturing leader in high-pressure industrial cleaning equipment, over 16 years ago, I was purposeless and lost — which, in part, led to addiction issues and low self-esteem. I was miserable in my job at the time, which led me to underperform, which made me more miserable. Back then, I didn’t understand the value of purpose, much less why the company’s purpose should resonate with me — truth be told, I wasn’t clear on what the company’s purpose was. Even worse, I was purposeless myself. All of it came crashing down when I overdosed in 2006. To recover and heal, I moved home with my mom to rebuild my life after an overdose in 2006.

    Fast-forward a decade and a half later, and I now realize how common this is. Maybe not the overdosing part but feeling miserable at work because your purpose and your company’s purpose either don’t align or don’t exist. I learned by working at StoneAge the power a company’s purpose has on motivating employees and helping them find more meaning in their work. Now, every day I live my personal purpose — to be an impactful leader that improves the lives of my customers and teammates — and am inspired by our company’s purpose of helping our customers go home to their families every night less stressed and uninjured because we make products that help them do their challenging jobs safer, easier and better. When you help your employees tap into the power of purpose, you can create an unstoppable organization. But it isn’t easy unless you have a clear company purpose.

    Related: Why a Purpose-Driven Business Is the Real Key to Success

    So, why is having a clear company purpose so important? When people are inspired and aligned with purpose, a company can easily attract and retain employees and build a loyal customer base. Having a higher purpose can help a company create a positive social and environmental impact, which can benefit society — which I believe should be a mission of all executive leaders. And most importantly, a clear purpose helps leaders make better strategic decisions that align with their values and goals, leading to long-term success.

    Don’t believe me? Look at Fortune Magazine’s “Most Admired Companies List. According to Korn Ferry, 97% of leaders at companies that have made the “Most Admired Company List” said employees embrace the organization’s purpose, and 95% believe their organization’s purpose aligns with the company’s vision and goals. Leading with purpose leads to success.

    Take Patagonia, for example. Patagonia has a higher purpose of helping save the planet from the devastating effects of climate change. In fact, Patagonia pledges 1% of sales to the preservation and restoration of the natural environment. This purpose is evident in every aspect of the company’s operations, from its sustainable manufacturing processes to its political activism and support for environmental causes. Patagonia’s employees are deeply engaged and motivated by the company’s mission and feel a sense of purpose and fulfillment in their work. This, in turn, has helped Patagonia to build a loyal customer base and become a leader in the sustainable clothing industry.

    How should a company go about developing a higher purpose? Here’s what we did:

    We defined the impact we wanted to make

    We make high-pressure industrial cleaning equipment and serve a notoriously dangerous industry — cleaning industrial facilities such as refineries, chemical plants, power plants, food processing plants and more. Our products make a hazardous and difficult job easier and safer. And our customers, although an essential part of the supply chain, are often looked at as glorified janitors, an undeserved label placed upon a critical industry.

    Industrial cleaning contractors rely on us to help them finish their jobs on time, on budget and as safely and easily as possible. We understand that our products, backed by our commitment to service, make their lives easier. We also understand that manufacturing everything we humans use daily would come to a screeching halt without industrial cleaning. Quite simply, the world is dirty, and we help keep it clean so you don’t have to worry about it. We clearly defined how we positively impact the world, which motivates us to innovate products and better serve our customers.

    Related: 3 Reasons Why a Strong Purpose Is a Good Business Idea

    We not only aligned our purpose with our values, we made our purpose a value

    We believe in keeping things simple. We don’t want our values to be an eye-roll-inducing poster that hangs on a wall. So, we narrowed our values to three principles that our employees understand and can speak to: Practice Self-Leadership, Be a Great Teammate and Deliver on the StoneAge Assurance Promise. The StoneAge Assurance Promise is our commitment to doing whatever it takes to help our customers complete their cleaning jobs safely, on time, on budget and as easily as possible — our purpose.

    We engaged stakeholders throughout the organization

    A higher purpose isn’t developed in a conference room by the executive management team, at least not one that stakeholders are inspired by. So, we set out to engage our team. Together, we developed the StoneAge Assurance Promise and our other two core values. Then we asked our customers what they thought about it, and the feedback was resoundingly positive. We hit a home run; our purpose aligned perfectly with what our customers needed and wanted from us.

    We continuously communicate our purpose

    What good is a higher purpose if no one knows what it is? That’s why the StoneAge Assurance Promise is everywhere. We discuss how well we deliver our promise to our customers daily and recognize employees who go above and beyond in embodying the promise. It’s woven into our hiring and onboarding practices and performance review process. It’s also on our website and marketing content; our customers even talk about it. Undoubtedly, our purpose is embedded in everything we do because of our commitment to communicating about it regularly.

    Related: What’s Your Purpose? 5 Reasons You Need to Set One for Your Business.

    Finally, we lead by example because we embody our purpose

    Every day, our employees lead by example by taking action and making decisions that align with our higher purpose. Our commitment to our promise builds trust and credibility with our customers and each other. Everyone demonstrates the company’s commitment to its purpose; there is no StoneAge without the StoneAge Assurance Promise.

    A higher purpose is essential for a company’s success and should be a priority for leaders. Helping your employees understand and embrace purpose will create a more engaged, motivated and purposeful workforce aligned with your company’s mission and values. The results can be outstanding if done correctly — long-term success and a positive impact on society.

    Kerry Siggins

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  • Why Aligning Your Leadership Style and Values is Critical for Leadership

    Why Aligning Your Leadership Style and Values is Critical for Leadership

    Opinions expressed by Entrepreneur contributors are their own.

    When you hear the word “values,” you probably think of some personal examples, such as discipline or perseverance. Go one step further and consider leaders you admire. What values were behind the notable decisions they made or memorable actions they took? Were those values in alignment with their choices?

    As a leader, I firmly believe that aligning your management style with your values is critical. Otherwise, you will come across as disingenuous. If a leader says they value trust but is constantly micromanaging the team, are they really trusting? You’ve likely considered this type of alignment when looking at your career moves or choosing a candidate at the polls. What about within yourself? Let’s explore how you can understand your values and align your leadership style accordingly.

    Related: Do Core Values Still Matter Today?

    Understand your values

    To align your leadership style with your values, you must understand them first. Most of us have several core values that we live by. Of course, some may change over time, but you likely have a set of values that never change. These values guide you in decision-making, solving problems and building relationships. Core values also shape how you approach your work.

    Examples of core values include honesty, integrity, commitment, respect, trust and communication. While individuals live by their core values, as many as 80% of companies and organizations have them. It’s up to leadership to carry out an organization’s core values, which affect employee behavior and company culture. Employees will see the misalignment if the company values state one thing and leaders behave differently.

    Next, you’ll need to understand your leadership style.

    What’s your leadership style?

    The better you understand how you engage with others, the easier it will be to align with personal and company values. There are eight different kinds of leadership styles:

    An autocratic leader takes control. Key characteristics of an autocratic leader include being results-centered, efficient and micromanaging. This type of leader wants to ensure employees abide by company policies and rely on leadership for instruction. An autocratic leader can be helpful in emergencies when less-experienced employees need clear instructions to reach a solution.

    Charismatic leaders have a charming and magnetic management style. They are highly persuasive, committed to their cause, and interested in building relationships. A charismatic leader takes pride in rallying the team to achieve a goal. This management style often results in helping employees feel engaged, supported and motivated at work.

    Democratic leaders are collaborative and experimental. A democratic management style promotes creativity, engagement and teamwork. A democratic leader enjoys getting input from the team before making decisions. This management style can lead to bonds between leaders and team members.

    Laissez-faire or a “hands-off” leader promotes trust and growth among the team. These leaders encourage innovation, have confidence in their employees, and want independent staff. This leadership style works best with highly experienced professionals. When self-disciplined employees have more autonomy, they often demonstrate initiative.

    Related: 7 Leadership Styles on Television Entrepreneurs Can Learn From

    Leaders who utilize a coaching style of management may remind you of a sports team coach. Coach-like leaders can identify what motivates each employee and are dedicated to their team members’ development. Leaders with a coaching management style often encourage their employees to develop their talents further and create new opportunities.

    A pacesetting leader creates high standards for the team and is always looking for ways to be productive. This type of leader has high expectations and overwhelms employees with demands. This management style can help build trust among employees who recognize their manager adheres to the same standards they set for their team.

    Leaders with a bureaucratic management style utilize a well-defined hierarchy for tasks. A bureaucratic leader is focused on following rules, is less concerned with collaboration and assigns each employee responsibilities and tasks. This leadership style is helpful in heavily regulated industries but less effective in creative environments.

    Transactional leaders improve employee performance via rewards, such as incentives and monetary bonuses. A leader with a transactional management style acts as a mentor for employees, provides detailed instruction to ensure expectations are met, and responds to adverse outcomes with disciplinary actions. This management style is highly effective in helping teams hit sales and revenue goals but less helpful in leading teams or departments focused on driving innovation.

    Now that you’ve identified your core values and leadership style, it’s time to get them in sync.

    Align your values with your leadership style

    1. State your intentions

    Kick things off by formally defining your values and purpose in a written statement. Your purpose is what you want to accomplish, for whom, and to what result. Your values will precisely guide how you tackle the goals outlined in your purpose.

    Then, share your purpose and values with your team. Your purpose can be an evolving document that changes with experience, but you’ll hold each other accountable as a team.

    2. Behave consistently

    Now it’s time to act on the standards you’ve set. Look at actions, decisions, and plans through the lens of your purpose and core values. If there’s any misalignment, talk to other leaders you trust within the company. Each day, strive to go home knowing you did your best to stay aligned with your values. If you retroactively catch yourself misaligned, ensure you take proactive action the next day to remedy the decision or action.

    Related: This Is Why It’s So Important to Articulate Your Brand Values

    3. Seek feedback

    Stay true to your word by encouraging honest feedback. Make it clear that you’re trying to act in alignment with your values regularly.

    Structure your feedback discussions and ask how you can do better. When the conversation ends, genuinely thank them for taking the time to help you understand their viewpoint.

    In addition to seeking feedback, regularly check in to refine your purpose and values and share it with your team.

    Understanding your values and aligning them with your leadership style takes time and practice, especially in an evolving company setting. Be open to change and feedback to adjust your actions accordingly.

    Related: 4 Ways to Balance Company Rules With Values

    Vanessa N. Martinez

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  • This Ukrainian CEO Reveals What it Takes to Sustain a High-Performing Hybrid Team (Even During a War).

    This Ukrainian CEO Reveals What it Takes to Sustain a High-Performing Hybrid Team (Even During a War).

    Opinions expressed by Entrepreneur contributors are their own.

    The last couple of years has been incredibly challenging for businesses worldwide. None were left unaffected by the ongoing crises of global warming, Covid-19, or inflation. When the pandemic hit, it left companies with no other option but to adopt a new hybrid model of work culture. Each of us had to step out of our comfort zone and learn how to master work-from-home quickly.

    Just when we thought the pandemic was over, the full-scale invasion of Ukraine posed a new threat to the world economy and politics. The whole generation of Ukrainian entrepreneurs was now forced to find ways of supporting their businesses and teams regardless of the war. As the CEO of BetterMe, a company headquartered in Ukraine, I can share the experience of how I charge my team with energy and motivation, considering the major crises that keep unfolding around us in Ukraine.

    On the first day of the invasion, I was sure of nothing but one thing: If my team withstood this crisis, the company would keep thriving too. After almost a year of full-scale war, the Ukrainian tech industry is not just surviving — it continues growing day by day. According to data from the National Bank of Ukraine, IT industry export revenues actually increased by 23% year-on-year during the first six months of 2022 to reach $3.74 billion. Our teams stay strong and motivated despite the power outages, the mental health burden and the neverending bad news that the war brings daily. How is that possible?

    Related: Russia-Ukraine War And What It Is Doing To Businesses And Consumers

    Ralph Emerson once said, “Every great institution is the lengthened shadow of a single man.” Even if Emerson hinted at the leader, I believe the company is an extension of everyone who works there. If your team shares common goals and values with your business, it will withstand any storm coming its way.

    Values matter: How to motivate better performance in the workplace

    Company-wide and individual employee values should sync to achieve the best results on both sides. Such alignment makes them equals, working together towards one common goal. More than that, the company needs to know how to channel these values. If the candidates are aware of these values during the interview, they’ll know whether this company is a good match for them too.

    As a result, a value-united team will share a sense of mission they strive to achieve together. For example, at BetterMe, we aspire to make a healthy lifestyle available to millions of people worldwide. Our mission is creating happiness from within, which spreads not only to our users but also to our team. People are our greatest value, so we prioritized caring for them when the war knocked on our doors.

    Helping others became our team’s biggest motivation and value in 2022. We thought of ways we could support people, our fellow Ukrainians, at the time of this nationwide crisis. On the second day of the war, we opened free access to BetterMe: Health Coaching and BetterMe: Mental Health for all Ukrainians. Even though it was a challenging task, the team saw its tremendous value for the people and worked hard to make it happen. We had numerous volunteer initiatives throughout the year, including holding donation events or launching a charity sportswear collection to raise funds. We stay on track because everyone on the team is strongly motivated to contribute to others’ wellbeing and keep helping those affected by the war.

    Building a strong team starts with hiring the right people

    But great teams aren’t created when the crisis hits — this process starts much earlier. According to recent research, a bad hire isn’t only bad for the team but can also cost a company $15,000 on average. That’s why we practice bar-raising: It’s a great tool to cut unnecessary costs and ensure we hire the right people. This practice applies to the last interview stage, aiming to “scan” a person and see if they align with the company’s values.

    In the interview process, our C-level employees can ask the candidate anything from how they would act in various imaginary scenarios to how they envision their professional growth in the future. These questions can clarify their motivation, values and professional potential.

    Hearing their answers, your employee can assess whether this person is a good fit for your company. Bar-raising can bring you closer to that employee-company match and guarantee successful long-term relationships. Hiring “your” people creates stronger teams and companies that can deal with any crisis.

    What to do when a crisis puts your values on hold

    A crisis is only dangerous to the extent it affects your team’s wellbeing. Evolutionarily, a situation of danger puts all humans into a fight-or-flight mode, evoking our basic survival instincts and making everything else insignificant. Because how can one remain productive and motivated on a falling plane?

    When a plane is about to take off, all passengers hear instructions: “Put on your oxygen mask first before helping others.” This rule applies to business perfectly: Prioritize your wellbeing to help your clients later. Taking care of your team first is crucial to getting your company back on track as quickly as possible. When the full-scale invasion started, I instantly prioritized the safety and security of our team and their families. After helping with the evacuation, we encouraged our team to stay on track with our mental health app, regular sports, online English lessons, drawing, and planting masterclasses, floral design classes etc. Despite continuing to work hybrid, regular activities provided stability for our team in times of uncertainty.

    Related: Back-to-Office: Why Putting Employees First Will Be Your Best Business Move

    In some cases, hybrid work culture can even contribute to a sense of belonging in the workplace. For example, an online initiative can unite people who work remotely and make them feel like they’re all doing a part in a significant project together. In our case, we organized a Vyshyvanka Day flashmob when everyone recorded a short video wearing their piece of national garment and singing our national song, which lifted the whole team’s spirits. Under the company’s care and guidance, the team performance will gradually improve as everyone learns to adapt and manage stress better. The good news is — you’re all in this together.

    In times of crises and instability, businesses start seeing what matters the most. People are the company’s most important value: Whoever wins the talent race can scale better and faster than their competitors. By implementing these practices, you can get ahead in this race; strengthen and motivate the team to deliver results amidst the crisis. I know that a sense of shared mission and values in my team keeps our company thriving, even when the power outages hit Kyiv again.

    And remember: Any crisis coming your way is both a test and an exceptional opportunity for growth. It only matters how you handle it.

    Victoria Repa

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  • How Serving in The Army Taught This Leader The Importance of Employee Wellbeing

    How Serving in The Army Taught This Leader The Importance of Employee Wellbeing

    Opinions expressed by Entrepreneur contributors are their own.

    Once upon a time, protecting the wellbeing of employees might have been viewed as a luxury for a few lucky workers or a fluffy topic for soft leaders with nothing better to worry about — but things are changing. The U.S. military has recognized the importance of mental health since 2009 when it launched its “resilience training” program. While the corporate sector has been slower to catch on, more than 90% of leaders believe promoting wellness boosts performance.

    As a past military leader myself, many of the biggest lessons I’ve learned about employee wellbeing come from my time in the army. Today, I’ll share them with you.

    Related: How Military Service Made These Veterans Better Entrepreneurs

    The military and mindfulness

    The big M has become more popularized over the last few years, yet not every organization thinks it’s useful or feels comfortable discussing it. Most people certainly wouldn’t associate with the military.

    But mindfulness is the ability to be fully present in the moment. And where could that skill be more critical than in a survival environment where failing to be alert could put you and the rest of the team in danger?

    The army teaches soldiers how to stay in the moment and make better decisions under pressure by encouraging mindfulness practices like sitting with your thoughts for a few minutes each day. As well as boosting on-the-job performance, the military has found this training helps soldiers to deal with the after-effects of being in a traumatic situation.

    Standard employees might not be dealing with life-and-death situations, but they can adopt similar principles.

    Mindfulness in the workplace comes down to developing the ability to deal with the emotions, stresses and conflicts that crop up each day. You need to teach employees how to become more aware of the present moment and accept their feelings, thoughts and decision-making processes instead of being slaves to them. It’s the difference between feeling stressed and thinking “the world is burning, I’m overwhelmed and I want to go home” and “I’m feeling the sensation of stress right now, but that’s okay, it’s just a sensation. I’ll let myself breathe for a bit and let it go.”

    Thanks to the widespread awareness of mindfulness these days, it’s easier than ever to help your team learn to deal with what’s going on in their head. For instance, the Calm app is full of guided meditations, many of which are directly related to the workplace and last less than ten minutes (making them easy to slot into schedules).

    Why not offer a free subscription to everyone who works for you?

    Related: Military Service Is the Ultimate Training Ground for Entrepreneurship (Infographic)

    It’s all about the culture

    You’d struggle to find an organization with a more tight-knit culture than the army — those who have been in the military often describe it as a “brotherhood.” Everyone is united by their shared purpose to serve the country, authority is respected for the most part and everyone knows they have to work together to achieve their goals.

    68% of veterans say they’re proud of their service. How many people would say the same of a former employer?

    You can try to emulate this idea of a “brotherhood” by giving your employees a sense of purpose and connecting them to the company’s greater mission. Make your values a part of daily processes, and review them with your employees.

    The way you lead also makes a big difference. Instead of creating a dog-eat-dog or hustle-hard environment, lead with empathy, transparency and trustworthiness. Are you truly being honest with your team and doing your best to look out for them?

    To show that you have everyone’s best interests at heart, curate an agile working environment and give everyone opportunities to try new things, plus the flexibility to take things easy when they’re struggling. You may be able to use technology to help your team connect and get more out of their job — for instance, tools that facilitate remote working or offer education.

    Don’t forget the financial side

    It’s a well-known fact that the U.S. military looks after its soldiers. Not only do most soldiers receive a fairly substantial salary, but they also have a range of other perks. These include:

    • Free college at public colleges.
    • A savings deposit program with 10% interest (for those in a combat zone).
    • Affordable housing.
    • Affordable life insurance.
    • Allowances for food and housing (in some cases).

    Many private-sector companies could learn from this. In the working world, employers often favor solutions related to improving corporate culture and providing perks of the job, while employees would simply prefer to earn more. The truth is something in between — there’s more to a positive working experience than good pay, but without financial security, you’re probably not going to get people to stick around or produce their best work.

    Who is going to want to follow the guided meditations on Calm if they can’t even fill their car up with gas?

    Considering the current environment with rising inflation, high-interest rates and the increasing cost of living, this isn’t something you should be neglecting. Do some market research to gauge how much other companies are giving employees with similar roles — and look at your budget to see if there’s any wiggle room to offer more.

    Wellbeing is just the beginning

    With the global corporate wellness market set to reach $90 billion by 2026, overlooking this could mean you get left behind. When you work on your team’s wellbeing, you won’t just be making your employees happier — you’ll increase the chances of them sticking around, being more productive and being committed enough to the organization to lead innovation.

    Employee wellbeing isn’t as simple as implementing a single action, and a strategy that works for one company isn’t necessarily going to be right for every organization. But if you try various approaches and are prepared to tweak them until you figure out what works, you’ll be impressed with the results.

    Tim Madden

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  • How To Lead With Validation and Become A Better Leader

    How To Lead With Validation and Become A Better Leader

    Opinions expressed by Entrepreneur contributors are their own.

    On the final episode of her TV show, Oprah declared: “I’ve talked to nearly 30,000 people on this show, and all 30,000 had one thing in common. They all wanted validation.”

    All humans share this innate need and intense desire. When we look at Abraham Maslow’s hierarchy of needs, three out of five components are related to validation: safety, love and belonging and esteem.

    Related: 5 Rock-Solid Leadership Strategies That Drive Success

    But, what is validation really?

    Validation is allowing and acknowledging someone’s unique emotional experience, thoughts, values, dreams, beliefs, concerns and contributions.

    Allowing: This happens through practicing silence and providing space for full expression.

    Acknowledging: This means expressing that you recognize that what was shared is accurate, valid and important.

    Validation is the feedback that sends the clear message: “You are seen, safe and supported.”

    Related: Your Employees Are Probably Feeling Triggered at Work

    Why does validation matter?

    Validation helps build stronger relationships because it helps people feel valued. Validation is essential to create a deep connection with another human being and is a necessary skill for leaders.

    When we validate others, their needs of safety, love, belonging and esteem are met. These are the requirements for self-actualization. When someone feels invalidated, they cannot fulfill their potential — it may even stunt their growth.

    Validation is so much more than rewarding extraordinary work with money, perks or verbal praise. It requires genuine care and an appreciation of the whole person — not just their accomplishments and efforts.

    Even top performers stop growing when they don’t feel validated or feel invalidated. Invalidation is the unspoken barrier to vulnerability, authenticity and belonging.

    Related: The Pursuit of Happiness: Self-Actualization and Maslow’s Mistake

    Validation is the prerequisite for vulnerability

    In recent years, we’ve all heard about the power of vulnerability and the need for authenticity in every aspect of our lives. I believe everyone understands the value of being vulnerable. And most of us want to be vulnerable. For many of us, it’s a deep desire.

    However, many of us are constantly invalidated, making us cautious or even close to attempting to be vulnerable again. We guard ourselves against people who invalidate our experiences.

    For people to be vulnerable and authentic, they need a safe place. They need a safe person.

    Validation is the prerequisite for vulnerability. When someone validates our experience after we’ve shared something vulnerable, we are likely to be vulnerable again with them. However, we become hesitant or resistant to open up when we are invalidated.

    Related: The Benefits of Practicing Vulnerability in the Office

    What is invalidation?

    Many of us think of invalidation as saying something mean to another person when in reality, many of our invalidating responses actually come from a good place.

    Invalidation can happen by denying, dismissing, or diminishing someone’s experience.

    Denying is overt invalidation. When you tell someone that what they perceive as true didn’t happen or is not happening, it is evident that they will feel unseen, unsafe and unsupported. However, dismissing and diminishing is a more covert message often disguised as motivation. I call this “motivational shame.”

    Most leaders have been trained to motivate their teams. But motivation is not enough. Motivation can be detrimental when it invalidates someone, no matter how great your intentions might be. Invalidation happens when someone expresses concern, and you reply: “You’ll be fine” or “You’ve got this!”

    Invalidation looks like someone sharing an experience they consider painful and receiving the reply: “It’s not such a big deal” or “It could be worse.” Many people would go as far as to share those worst cases with them.

    Even sharing solutions like a mantra or positive affirmation can be an invalidating experience because when people share their feelings, they are not necessarily seeking solutions. They are just seeking confirmation that they are not wrong or fundamentally flawed for feeling them.

    Essentially, being invalidated is getting the message that we are not being rational in our feelings and that we shouldn’t feel that way. This leaves us feeling worse and leads us to shut down, affecting our state, health and performance.

    Validation helps create a safe culture where your psychological safety is a possible reality.

    Fostering an inclusive environment

    It’s a great step to encourage your employees to be transparent, but saying phrases like “be your true self” or “bring your whole self to work” is not enough. Authenticity still feels daring and must be validated for that person to remain authentic.

    Without validation, you cannot have a genuinely inclusive environment because inclusion is not a policy.

    We feel included when we can be authentic and don’t have to strive to fit in. When we are validated, we feel that we belong, just as we are.

    Related: 4 Ways to Cultivate Inclusion and Compassion In the Workplace

    How to validate those you lead

    Validating is a critical leadership skill, even in self-leadership. I’m sharing some examples of validation in the workplace to illustrate how simple it can be:

    Experience: “Wow, being a woman of color in this company sounds difficult.”

    Thoughts: “I really appreciate your willingness to share your ideas!”

    Values: “Wow… I can see why that’s important to you.”

    Dreams: “You sound so excited about this new goal, and with your work ethic, I’m sure you can do it!”

    Beliefs: “Can you tell me more about that?”

    Concerns: “I can understand why you feel that way. I’d be worried too!”

    Contribution: “You’ve put so much into this project. I’m so happy for you. What an amazing accomplishment!”

    Validating is an effective way to connect with those you lead because it communicates that you care about them. To make a difference in the people you lead, you must create an environment where they feel valued. I encourage you to think about how you might replace motivation with validation. As you do this, you can genuinely be the impactful leader you want to be.

    Elayna Fernandez

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  • How to Activate and Align Your Values When Under Pressure

    How to Activate and Align Your Values When Under Pressure

    Opinions expressed by Entrepreneur contributors are their own.

    In times of high pressure, aspirational core values can seem entirely impractical. Who has time for being “bold,” “innovative” or “connected” when they’re slammed by a barrage of emails and threatened by volatility or disruption?

    In these situations, values are relegated to vinyl stickers on an office wall or words tucked away on the About Us page of a website. How many people can recall their company’s values, never mind using them as a blueprint for decision-making and the basis for team alignment and trust?

    Related: Want Success? Define Your Company Values

    How workplace values emerge

    Values are what is important. Whether you can articulate them clearly or not, you have values. Your company has values and they are set by the executive — not the marketing — team.

    Leadership values shape employee behavior. If leaders value financial performance over all else, employee well-being, environmental impact or social connectivity may be neglected. Values contagion is a real phenomenon, and no training initiative will shift your culture if leadership values are misaligned or inconsistent. Employees roll their eyes at what they perceive as phony company values when leaders don’t walk the talk.

    Values in distress

    Distress arises when there is a misalignment of values. For example, imagine that you’re working late nights and sacrificing family time. If a core value is family, you’ll start feeling resentful toward work. Or perhaps you’re spending too much time caring for your family when a core value is productivity. You might then resent your family. There is no right or wrong; your values profile is entirely unique.

    In life’s journey, purpose is your North Star and values are the flame lighting your way. The terrain may be challenging, but knowing what is important and acting in alignment reduces ambiguity and increases fulfillment. You’ll have a reason “why” and a torch to guide your “how.” If the flame of your values burns low, you — and your team — may feel lost. In an environment of uncertainty, we activate ancient survival mechanisms, including our negativity bias, to secure our safety.

    Are values purely cognitive?

    The missing link in values alignment is our physiological state. When distressed, under threat or unwell, our values shift from aspirational and collaborative to primal and protective.

    There’s an ancient part of the brain called the amygdala. It scans input arriving via our senses and triggers strong emotions to help protect us from perceived threats. This can save our life if a lion wanders into the office. It saved the lives of our ancestors who navigated challenging environments where direct threats to survival were the norm. Fast forward to modern life, where inboxes overflow, amplified by pressure to perform and conflicting demands. We are our worst enemies because to manage complexity, we need to be calm, present and energized — yet we’re sleeping less and worrying more than ever.

    The flame of our values is reduced to embers under chronic distress. Our window of tolerance shrinks. We become a less human version of ourselves. Driven by basic survival emotions such as anger, sadness, fear, craving or disgust, the potential for creativity and collaboration is impaired. Our values downgrade to surviving rather than thriving.

    Related: A Set of Core Values Is What Makes Company Culture a Real Thing

    Find your baseline of calm

    Values-based leadership requires deliberately shifting from fight, flight or freeze into a state of calm coherence: body, emotion and mind. How do you establish calm? Create space in your day. Schedule micro-breaks. Use breathing techniques, meditation, and time in nature to reboot your nervous system.

    Train yourself out of habituated busyness by silencing your phone when it is not in use. Your phone is a tool, don’t mistake it for a friend. It is an extractive technology, and it is mining your attention.

    Polyvagal theory suggests that our nervous system is capable of progressing from calm to playfulness, trust, and high performance. In high performance, you can purposefully ride the edge of fight-flight while in a deeply immersive flow state. Here lies the golden zone for values-based action — and a 500% productivity boost.

    When you trust your environment, yourself and your team, you unlock psychological safety and a shift towards a values-driven culture.

    Values as habits

    Your values should be actionable. Instead of words describing desired traits, they should be an identity you believe in. For example, if you value kindness, your identity is: I am a kind person. Now, what does a kind person do? Simply, they treat others with respect, care and compassion.

    So we proceed to build micro-habits around this identity. Start with what you can achieve in 60 seconds or less. Prepare your environment by leaving strategically positioned cues or reminders. As a kind person, I might choose gratitude as a micro-habit worth implementing. So I set a reminder at 4 p.m. every day to reach out to one person in appreciation, care or support. With repetition, this is embedded in my operating system as a habit. I consistently send positive ripples across my circle of influence. I’m becoming the person I aspire to be through targeted, decisive and practical action.

    We are the sum of our habits. Even a company value like innovation requires a web of supporting practices, ranging from vitality to goal-setting. Leaders valuing innovation need to allocate space for it to emerge. Habits such as relaxation, which shifts us out of fight-flight mode, contemplation and play will support innovation.

    Follow a phased approach, upscaling the habits that work. Build rhythm in your work and life.

    Related: The 8 Values Every Company Should Live By

    Conclusion

    Instead of espousing aspirational values, lead with values-based behavior. You’ll transform yourself, your team and your business one micro-habit at a time.

    Remember that the most significant risk to values is distress — so stay calm. Be the change you wish to see in your organization. Nurture your values flame so that you burn bright instead of burning out. Light the way, and your team and culture will follow.

    Bradley Hook

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