Many businesses invest time creating a set of company values, but over time they can fade into the background. They appear on the website, in induction packs and on office walls, yet they’re rarely discussed or used to guide everyday decisions. Ask a few employees to explain the company’s values or how they influence the way they work, and many may struggle to answer. When values become words rather than behaviours, they lose the ability to shape culture and drive performance.
Culture forms whether you manage it or not. The real question is whether it reflects the values you’ve intentionally defined or the behaviours that are rewarded, accepted and repeated every day. When company values exist only on paper, employees look elsewhere for guidance on what really matters. This article explores practical ways to keep your values relevant, ensuring they become part of everyday decision making rather than simply words displayed on a wall.
Written Values vs. Values in Action
Every business has a set of values that influence how people behave. The difference is that some organisations define them intentionally, while others allow them to develop over time without realising it.
- Written values are the principles your business says are important
- Operating values are the behaviours your team believes are truly valued, based on what leaders recognise, reward and tolerate every day
When these two align, decision making becomes more consistent. Employees have greater confidence, managers are empowered to make decisions, and there’s less need to constantly seek approval or resolve unnecessary misunderstandings.
When they don’t align, the effects are equally noticeable. Teams become inconsistent, employees hesitate to make decisions, and high performing people can become disengaged if they see a disconnect between what the business says it values and what it actually rewards.
This gap doesn’t happen because you’re a bad leader. It happens because small businesses run fast. With so many competing priorities, it’s easy for company values to become a one-off exercise: written down, displayed and then forgotten. But values only shape culture when they’re actively used. Like any business tool, they need to be applied consistently to make a real difference.
What Company Values Are Actually For
In a small business, company values are not a branding exercise. They are a decision making shortcut — one that works when you’re not in the room.
| Term | What It Means in Practice |
|---|---|
| Values | The behaviours you reward, protect, and enforce — even when it costs something. |
| Mission | Who you serve and what you deliver. |
| Vision | What the business looks like in the future. |
| Culture | The sum of values lived daily — chosen intentionally or formed by default. |
Values only become meaningful when they influence business decisions under pressure. It’s easy to uphold values when there’s no cost, but their true test comes when the right decision is also the harder one.
Ask yourself:
- Would we sacrifice short-term profit to uphold this value?
- Would we disappoint a customer if it meant staying true to it?
- Would we address poor behaviour, even from a high performer?
If the honest answer is “no,” that value isn’t ready for prime time yet. Tighten it until it points to a behaviour you can actually lead.
“What do we do here when there’s more than one reasonable option?” — that’s the question your values should answer. When values go stale, your team fills in that blank on their own.
A Practical Example of Values in Action
Imagine a customer calls to complain that their order arrived late and requests a full refund. Your employee has several reasonable options, from issuing the refund immediately to offering a partial credit or following company policy.
The right response depends on your company values.
If your business values prioritise taking ownership and putting customers first, your employee may apologise, provide a goodwill gesture and investigate the cause to prevent it happening again. If your values focus on fairness and consistency, they may explain the company’s policy, offer an appropriate resolution and escalate the matter only when necessary.
Neither approach is inherently right or wrong. What matters is that your values provide employees with the confidence to make consistent decisions without needing to seek approval every time a difficult situation arises.
Four Signs Your Company Values Need Refreshing
1. They are only mentioned during onboarding
If employees hear about your values on their first day and never again, they’re unlikely to influence behaviour. Values should be reinforced through real examples and everyday conversations, not just introduced during induction. If values appear once during onboarding — right next to the tax forms and the Wi-Fi password — your team treats them like paperwork. The fix isn’t more posters. It’s teaching values with specific examples tied to real work, not slogans.
2. Managers don’t refer to them when giving feedback
Performance discussions shouldn’t focus solely on results. Using company values as part of coaching provides a clear and consistent way to recognise positive behaviours and address areas for improvement.
3. Leaders don’t model the values
Employees pay close attention to how leaders behave, particularly under pressure. If leadership actions contradict the company’s stated values, people will follow what they see rather than what they read.
4. Your values could belong to any business
Generic values such as integrity, excellence and teamwork are only meaningful if they’re clearly defined and reflected in everyday behaviours. If your team can’t explain what each value looks like in practice, or how it influences decisions, it’s time to revisit them.
Three Ways To Keep Your Company Values Alive
1: Recruit people who share your values
Technical skills are important, but values influence how people behave every day. Build your recruitment process around the behaviours you want to see by asking interview questions that reflect your company values and considering cultural fit alongside capability.
Use the prompts below as a starting point. Require real examples, not hypotheticals.
| Value | Interview Prompt | What to Listen For |
|---|---|---|
| Accountability | Tell me about a time you made a mistake at work. What did you do next? | Ownership, specific steps, no blame-shifting |
| Teamwork | Tell me about a time you had to work with someone difficult. How did you handle it? | Empathy, process, outcome focus |
| Customer Focus | Tell me about a time you fixed a customer issue that wasn’t fully your fault. | Initiative, ownership beyond job description |
| Problem Solving | Tell me about a time you had to make a call with limited information. | Judgment, confidence, transparency |
| Respect | Tell me about a time you disagreed with your manager. What did you do? | Candor with professionalism, no victim framing |
| Quality | Tell me about a time you had to choose between speed and quality. What did you choose, and why? | Self-awareness, context sensitivity, principles |
Red flags to listen for: blame-first language, vague answers with no specifics, or “I just did what I was told” with no evidence of judgment.
2: Reinforce values through recognition and feedback
Posters alone don’t shape workplace behaviour. What makes a difference is recognising and reinforcing your values through everyday actions. When someone demonstrates a company value, acknowledge it and explain how their actions reflect that value:
- “Thanks to Sarah for staying back to resolve a customer delivery issue. That’s Accountability in action.”
- “James took the time to help a new team member understand our processes this week. A great example of Teamwork.”
Keep recognition straightforward and consistent. It might be a weekly acknowledgement during a team meeting, a dedicated Teams channel, or a quick mention at a company wide meeting. When leaders regularly recognise behaviours that reflect company values, employees are more likely to understand and repeat them.
The same approach applies when holding people accountable. Rather than making feedback personal, use your company values as a clear and consistent standard:
- “When you spoke over the customer, that didn’t reflect our value of Respect.”
- “Next time, allow them to finish explaining the issue before confirming your understanding and responding.”
Focus on the behaviour rather than the individual, refer to the specific situation and be clear about what should happen differently next time. When values are understood and consistently applied, expectations become clearer and conversations about performance are based on agreed standards rather than personal opinions.
3: Lead by example
Employees look to leaders to understand what the business truly values. Your decisions, priorities and actions send a stronger message than any document or poster. When leaders consistently demonstrate the behaviours they expect from others, company values become part of the culture rather than just words on a page.
Embedding Your Values Into Everyday Work
Company values are most effective when they’re visible in the moments that matter, not just displayed on a wall. Look for practical ways to weave them into your day-to-day operations, such as:
- Including values in role descriptions and performance expectations.
- Sharing a “value of the week” with a real example during team meetings.
- Referencing values in procedures, checklists and quality standards.
- Reinforcing values during onboarding through stories and real-life examples.
- Highlighting your values in internal communications.
The more often your team sees and applies your values, the more naturally they become part of your business culture.
| Question | ✓ Healthy Sign | ✗ Gap Signal |
|---|---|---|
| Can 80% of your team name the values without looking? | Employees cite them in conversation | Blank stares or one vague answer |
| Can managers cite recent coaching tied to a value? | Specific feedback references values by name | Coaching is output only, never behavioural |
| Can you name a decision where values overrode convenience? | A real example comes to mind immediately | You have to think hard — or can’t find one |
| Do new hires see values in action in their first two weeks? | Values show up in onboarding and early interactions | Values appear on Day 1 then disappear |
| Would customers notice if your values disappeared tomorrow? | Customers describe your business in value aligned terms | Culture is invisible to the outside world |
If two or more gap signals show up, you don’t have a values problem — you have a repetition and reinforcement problem. That’s fixable without a retreat or a rebrand.
When Is It Time to Refresh Your Company Values?
Your company values shouldn’t change frequently, but they should evolve when your business does. Consider reviewing them if:
- Your strategy changes significantly, such as entering a new market or introducing a new business model.
- Your customer base or competitive environment shifts.
- Your business merges, acquires another organisation or undergoes major leadership changes.
- Ongoing internal challenges suggest your current values are unclear or no longer reflect the way you want your business to operate.
Avoid changing your values simply because you want something new or they’re starting to feel familiar. Consistency builds trust, and frequent changes can reduce their credibility.
If you to decide to refresh your values:
- Keep the principles that still reflect your business.
- Replace vague language with clear, observable behaviours.
- Remove any values you aren’t prepared to uphold.
- Define what each value looks like in practice.
- Explain the reasons for the changes to your team.
- Embed the updated values into recruitment, onboarding, performance conversations and recognition so they become part of everyday business.
The Benefits Of Bringing Your Values To Life
When company values become part of everyday behaviour, the benefits extend well beyond culture.
- Higher employee retention, as people are more likely to stay in a workplace where expectations are clear and consistent.
- Better recruitment decisions, by attracting and selecting people whose behaviours align with your culture.
- A more consistent customer experience, with employees making decisions based on shared principles rather than personal judgement.
- Greater empowerment, reducing the need for owners to be involved in every decision because employees understand what the business stands for.
The businesses with the strongest cultures aren’t necessarily those with the most polished values statements. They’re the ones where employees can confidently explain what the business stands for and demonstrate those values through their actions every day.
The Alternative Board’s Approach: Putting Values Into Practice
Understanding the importance of business values is one thing. Knowing whether those values are genuinely reflected in the way your leadership team and employees work, and in the experience you provide to customers, is another.
The Alternative Board’s Blueprint includes a structured Values assessment that helps business owners look beyond simply having a set of values written down. It provides a practical way to assess how well each value is understood and demonstrated by the business owner, leadership team and employees, while also considering how those values influence both the employee and customer experience.
This turns values from broad statements into something that can be assessed and acted upon. It helps identify where your culture is aligned with the business you want to build and where there may be gaps that need attention.
If you’ve been running your business on values that exist mostly in your own head, the Blueprint gives you a way to put them on paper, share them with your team, and start measuring what’s working.
Talk to your local TAB Business Owner to learn how values can form part of a broader approach to strategic planning and building a stronger business.