The Core Value Equation

About the Author

Darius Mirshahzadeh is a highly respected CEO, serial entrepreneur, and culture-building innovator. Recognized as one of Glassdoor’s Top CEOs of Small and Medium Companies in the US, Darius has achieved numerous accolades including several Stevie Awards, a ranking as the #3 Best Place to Work by the San Francisco Business Times, and a spot at #40 on the Inc. 500 list of fastest-growing companies. His insights and thought leadership have been featured in notable publications such as The New York Times, Inc. Magazine, Huffington Post, Entrepreneur.com, Fast Company, and Forbes. Darius's work in innovation and corporate culture has set a benchmark for leaders looking to create dynamic and successful organizations.

Main Idea

In his book The Core Value Equation: A Framework to Drive Results, Create Limitless Scale and Win the War for Talent, Darius Mirshahzadeh presents a compelling argument that the establishment and implementation of core values are essential for business success. He believes that core values are the foundation for making decisions, creating a consistent culture, and attracting the right talent. By embedding core values deeply into the organization, leaders can drive results and create a scalable business that stands the test of time.

Table of Contents

1. Introduction
2. Are You Managing A Monster?
3. There Is A Solution: Core Values
4. Companies Do Not Have Core Values; People Have Core Values
5. How To Build Core Values
6. Launching Your Core Values
7. Make Your Core Values Stick
8. Proving That Your Values Are More Than Fluff
9. Using Your Core Values
10. Keep The Ball Rolling
11. Conclusion

Introduction

The journey of a CEO is fraught with challenges, particularly in decision-making, maintaining a consistent culture, and recruiting the right talent. In The Core Value Equation, Darius Mirshahzadeh addresses these issues by advocating for the development of core values that guide a company's operations and culture. These values act as a compass, helping leaders navigate complex situations and ensuring that every team member is aligned with the company's mission.

Are You Managing A Monster?

Even successful businesses can feel overwhelming and unrecognizable to their leaders. Darius refers to this phenomenon as managing a "monster" – a business that, despite its success, is plagued by conflicting ideas and cultures. This inconsistency makes decision-making and culture-building extraordinarily difficult.

• A CEO of a growing tech company finds themselves constantly firefighting due to a lack of cohesive culture. Different departments operate under different assumptions, leading to internal conflicts and inefficiencies.
• A retail business expands rapidly but struggles with maintaining a unified customer service approach, resulting in varied customer experiences across locations.

There Is A Solution: Core Values

The solution to managing a monster is establishing core values. These values unify the company under a shared set of beliefs and goals. By clearly defining and implementing core values, leaders can create a consistent culture that simplifies decision-making and aligns everyone in the organization.

"Core values are the beliefs, goals, and assumptions that your business and workers hold to be true for the business." – Darius Mirshahzadeh

Companies Do Not Have Core Values; People Have Core Values

It's crucial to understand that core values are not just words on paper; they need to be embodied by the people within the organization. If employees do not internalize these values, the company cannot truly live by them.

"Companies are simply an amalgamation of a group of people. If the people do not have the core values, then the business doesn’t have it either." – Darius Mirshahzadeh

• A company that values innovation must encourage all its employees to think creatively and reward innovative ideas, ensuring that the core value of innovation is reflected in everyday actions.
• A business that prioritizes customer satisfaction should ensure that every employee, from front-line staff to executives, is committed to providing exceptional service.

How To Build Core Values

Creating core values is not about defining them arbitrarily but discovering what truly matters to your organization. This discovery process should involve input from the entire team, especially senior management, to ensure the values are genuinely reflective of the company's ethos.

"The best way to create a core belief system that is effective is to discover them, not define them." – Darius Mirshahzadeh

Steps to Building Core Values: