## Overview Core values are the foundational principles that shape **organisational belief**, drive **organisational culture**, and enable sustained growth. By defining, communicating, and embedding core values across an organisation, leaders can align employee behaviour, strengthen internal culture, and create a consistent experience for customers. This topic covers how beliefs are formed, how core values serve as the mechanism for shaping those beliefs, and a practical framework for executing value-driven culture change. --- ## Key Concepts - **Core Values** – fundamental principles that guide how an organisation operates and makes decisions - **Organisational Belief** – a shared feeling of certainty, permanence, and assurance held by members of an organisation - **Reference Points** – external inputs (experiences, associations, evidence) that shape a person's internal interpretation - **Compelling Story** – a narrative that emotionally connects employees to the organisation's mission and values - **Key Champions** – top-performing, trusted individuals who spread values and culture throughout the organisation - **Milestones & Actionables** – time-bound goals and specific actions that translate values into measurable outcomes --- ## Detailed Notes ### Organisational Belief - **Belief** is the feeling of **certainty, permanence, assurance, and rigidity** about something - Belief is formed from two sources: - **Internal interpretation** – a person's own understanding or conclusion about something - **External inputs** – reference points, experiences of others, and opinions from one's associations - If you provide core values as reference points, experiences, or associations, they gradually shape a person's **internal interpretation** and eventually become their belief - You **cannot change internal interpretation directly**; instead, supply correct reference points so a new belief forms naturally #### How Beliefs Strengthen - When opinion is influenced through consistent reference points, experience, and association, it becomes a **massive belief** - A massive belief is a strong predictor of how an individual will perform - If reference points and interpretations are **wrong**, they build **wrong beliefs** — and vice versa - If reference points and interpretations align with the **organisational goal**, employees' belief in that goal strengthens, and they begin working toward it #### Negative vs. Positive Beliefs - **Negative beliefs** develop when wrong reference points go unchallenged - Examples of harmful belief patterns: - "There is no point regretting past mistakes" → Actually, reflection prevents repetition - A sense of **false permanence** (e.g., "my role is guaranteed regardless of performance") reduces motivation and accountability - **Positive beliefs** are built through correct interpretation and consistent reinforcement - An optimistic person with the **right belief pattern** can transform outcomes; a **negative belief pattern** can destroy them #### Building the Right Beliefs - **Practice** – continuously collect correct interpretations and reference points - **Detachment** – distance yourself from people and inputs that provide wrong interpretations and reference points - The combination of **practice + detachment** enables control over the mind and belief formation --- ### Framework of Execution #### Step 1: Define Your Core Values - Core values are the **pillars** that support organisational belief — like legs supporting a table - Common core values include: | Category | Example Values | |---|---| | **Reliability** | Dependability, Consistency, Commitment | | **Customer Focus** | Customer Centricity, Involving the Customer, Service to Others | | **Performance** | Efficiency, Outperformance, Focus on Impact | | **Culture** | Collaboration, Compassion, Positivity | | **Growth** | Innovation, Entrepreneurial Spirit, Fast Mover | | **Integrity** | Loyalty, Being Open, Keep It Simple | - Organisations often **combine values into phrases or sentences** to make them memorable - Three particularly powerful core values: - **Customer Centricity** – the customer comes first in every decision - **Internal Collaboration** – employees work together across functions - **Ownership** – every employee treats their work as if they own the business and takes full responsibility #### Step 2: Write a Compelling Story - Craft a **compelling, exciting narrative** that communicates the organisation's beliefs and mission - The story should: - Inspire emotional connection among employees - Help **remove underperformers** (parasites) and **elevate top performers** - Share this story across **every department** of the organisation - Core values + compelling story = **emotional binding** of employees to the organisation #### Step 3: Identify and Empower Key Champions - Identify your **top trusted individuals** (key champions) within the organisation - Train them as **positive agents** to spread the story and values - Rationale: **Negative stories spread easily on their own**, but positive stories require deliberate effort — people, teams, and partners must actively carry them - Champions spread core values and story → this becomes **organisational culture** → culture creates a positive experience when customers interact with you → customers develop **positive belief** about the organisation #### Step 4: Set Milestones and Actionables - Write **specific milestones** with clear **dates and deadlines** - Define the **actions** required to reach each milestone - Plan **communication cadence**: - How many meetings and when - Channels: email, internal webinars, social media, physical meetings - Require leaders to provide **training, counselling, mentoring, or coaching** to their teams to execute action steps - Core values + organisational beliefs → **stronger organisation** → next level of growth --- ## Tables ### Belief Formation: Internal vs. External | Factor | Description | Role in Belief | |---|---|---| | **Internal Interpretation** | A person's own understanding of something | Forms the core of a belief | | **Reference Points** | Evidence, data, or examples from the external world | Shapes and validates internal interpretation | | **Experience** | Direct or observed outcomes | Reinforces or challenges existing beliefs | | **Association** | Opinions and influences from peers and networks | Provides social proof for beliefs | ### Four-Step Execution Framework | Step | Action | Outcome | |---|---|---| | 1. Define Core Values | Identify and articulate foundational principles | Clear organisational identity | | 2. Write Compelling Story | Craft an emotional narrative around the values | Employee emotional connection | | 3. Empower Key Champions | Train top individuals to spread values | Culture propagation across the organisation | | 4. Set Milestones & Actionables | Define goals, deadlines, and communication plans | Measurable execution and accountability | --- ## Diagrams ### Belief Formation Process ```mermaid flowchart TD A[External Inputs] --> B[Reference Points] A --> C[Experiences] A --> D[Associations] B --> E[Internal Interpretation] C --> E D --> E E --> F{Right or Wrong?} F -->|Right Inputs| G[Positive Belief] F -->|Wrong Inputs| H[Negative Belief] G --> I[High Performance] H --> J[Low Performance / Stagnation] ``` ### Core Values to Organisational Culture ```mermaid flowchart TD A[Define Core Values] --> B[Craft Compelling Story] B --> C[Empower Key Champions] C --> D[Champions Spread Values & Story] D --> E[Organisational Culture Forms] E --> F[Positive Customer Experience] F --> G[Customer Develops Positive Belief] G --> H[Business Growth] ``` ### Practice + Detachment Model ```mermaid flowchart LR A[Practice] -->|Collect correct reference points| C[Right Belief Formation] B[Detachment] -->|Remove wrong influences| C C --> D[Aligned Employee Behaviour] D --> E[Organisational Goal Achievement] ``` --- ## Key Terms - **Core Values** – the foundational principles that define what an organisation stands for and guide its decisions - **Organisational Belief** – a shared conviction within an organisation shaped by consistent reference points and interpretation - **Internal Interpretation** – a person's own mental conclusion about a concept, influenced by external inputs - **Reference Point** – an external piece of evidence, example, or data point used to shape belief - **Massive Belief** – a deeply held belief supported by multiple consistent reference points, making it highly resistant to change - **Feeling of Permanence** – a belief so strong it creates a sense of unchangeability, which can be positive (stability) or negative (complacency) - **Compelling Story** – an emotionally engaging narrative that communicates organisational values and purpose - **Key Champions** – high-trust, high-influence individuals trained to propagate values and culture throughout an organisation - **Customer Centricity** – a core value where the customer is placed at the centre of all decisions - **Ownership** – a mindset where employees treat their responsibilities as if they personally own the outcome - **Milestones** – specific, time-bound targets that measure progress toward a goal - **Actionables** – concrete steps or tasks required to achieve a milestone --- ## Quick Revision 1. **Core values** are the foundational pillars that build organisational belief and culture 2. **Beliefs** are formed through **internal interpretation** shaped by **external inputs** (reference points, experiences, associations) 3. You cannot change internal interpretation directly — supply **correct reference points** to build the right beliefs 4. **Negative beliefs** arise from wrong reference points and can create harmful permanence (complacency) 5. **Practice** (collecting right inputs) + **Detachment** (removing wrong inputs) = belief control 6. **Step 1**: Define clear core values (e.g., customer centricity, collaboration, ownership) 7. **Step 2**: Craft a compelling story that emotionally connects employees to the organisation's mission 8. **Step 3**: Identify and train key champions to spread values across the organisation 9. **Step 4**: Set measurable milestones with deadlines, communication plans, and leader-led training 10. Core values → organisational belief → organisational culture → positive customer experience → **business growth**