Are Core Values Really that Important?

Howdy, Upstarts!

I love the idea behind Core Values, and I think that, when used properly, they can bring a lot of value to a Startup! In fact, I think they are so important that one of the first things that I do when joining a Startup Founder Team is to review (or write) a set of Core Values.

Your homework is due on Friday!

When I was in university, my math classes gave us a lot of homework. I mean a lot of homework! I mean an impossible amount of homework! No, really! One person couldn't finish those homework assignments. (But I have to admit that this is really the only way to learn Math: Practice! Practice! Practice!)

The assignments were collections of proofs or equations that were too long for only one person to finish by the deadline. So to complete our homework, we needed to work in groups: dividing the problem sets and assigning portions to each team member. The professors understood we would do this, and actually planned their assignments to encourage this behavior, as it was a good way to teach team-building, communication, and organization as well as hyperbolic geometry.

The key part of this strategy was to divide our assignments in such a way that each individual worked on fewer problems than the entire assignment, but that each problem had at least two individuals work on an answer. When each individual had completed their part of the assignment, we would review the answers for each problem in a way that lets the individuals who had submitted answers compare their respective work. Because Mathematics is a discipline of pure logic and axioms, each individual should arrive at the same answer. That means that if two people came to the same conclusion, then it is almost certain that the answer is right; however, if two people came to different conclusions, then it is almost certain that somebody's answer is wrong, and our team could dig a little deeper.

Just like one of Taylor swift's ex-boyfriends, the rules of Mathematics never change!

I love consistency!

Geometry was codified by a Greek guy named Euclid, and it relies on five assumptions. Only five. Everything you know about triangles, spheres, lines, and planes all derive from these five assumptions. If you use these five assumptions as a starting point, every mathematician for 2,000 years will reach the exact same conclusions.

Every. Single. Time.

In fact, by changing a single one of those assumptions, a talented mathematician could define an entirely different type of geometry. 

The German Genius, Carl Friedrich Gauss, did exactly this! By ignoring Euclid's assumptions about how parallel lines work, Gauss pioneered some of the first steps in non-euclidean geometry. This allowed mankind to calculate geometry on the surface of spheres. I know that this sounds super nerdy (it is), but trust me, it is super cool because now we have satellites and the internet! 

But no matter the assumptions, the rules of math are consistent. That means that when we chopped up our math homework, and each problem had two people produce answers that could be compared, it was super simple to identify when our teammates made mistakes. Two independent mathematicians should always reach the same conclusion, and if they don’t then there is definitely a problem that needs further investigation, especially before you turn in your homework assignment!

Mathematics is consistent! There are always assumptions that mean that every person should consistently reach the same conclusion.

But how does my decade-old math homework correlate to Core Values for Startups?

Why do Startup Founders Distrust Core Values?

I have a high opinion for Core Values. But, I also understand that many entrepreneurs do not.

Many Startup Founders might dismiss Core Values as a waste of time or as needles jargon. And that is understandable! I hate jargon too! 

A Startup Founder always has countless nearly-impossible things to do. They have to build a product. They have to find funding. They have to make sales. They have to hire teams. A Startup Founder must constantly be juggling tasks to keep their Startup swimming simply to avoid drowning! Amidst all of this work, it can be easy for highly-focused, stressed-out Startup Founders to dismiss Core Values as a type of “Traditional Corporate Bullshit”: like “trust exercise” or “team-building”.

I get it! I am one of those highly-focused, stressed-out Startup Founders.

But the fact that I am one of those Startup Founders, constantly juggling tasks, is the exact reason that I love Core Values!

Core Values make my life as a Startup Founder easier! 

Okay so, the job of a Startup Founder is to juggle an endless list of near-impossibles tasks.

Just like those impossibly-long homework assignments from my math classes! 

And just like those assignments, the only way to accomplish every task on those lists is to tackle them with a team, and this is why Venture Funds invest in early-stage Startups almost entirely based on their Co-Founders. And just like those assignments, the way to ensure that your team comes to the best possible solutions is to have a set of core assumptions that empowers your Co-Founders to consistently reach conclusions.

And that is what Core Values are for!

Core Values are Your Geometric Assumptions

To articulate how powerful Core Values can be, I will need to rely on my training as a mathematician. 

Core Values empower each member of your Startup Co-Founders to reach Consistent Conclusions.

Do you remember the Greek fellow, Euclid? Do you remember those core assumptions that he used to create his geometry? Those five core assumptions from which everything that we know about triangles can be derived? Those five core assumptions that empower every mathematician to reach the same conclusions about spheres, no matter what day of the week it is or time of day it is? Those things?

Well, your Startup’s Core Values are its Core Assumptions.

Like the core assumptions of geometry, your Startup's Core Values are the base principles from which every decision that your organization takes and every strategy that your business makes should be derived.

A colleague of mine has made this specific point on several occasions. He and his Co-Founders can operate independently, and trust the decisions made by each member of their Founding Team. This means that when their CEO is raising funds, he can trust his CTO to build the product in a way that is consistent with the vision of their Startup. This means that when the CTO deploys a new feature, he can trust their CMO to be able to create marketing messages in a way that is consistent with the vision of their Startup. Each member of their Co-Founders can operate independently and manage their purview of responsibilities while making consistent decisions and keeping their Startup swimming forward without drowning. Without Core Values, these Founders would be second-guessing each other and making counter-productive decisions.

By articulating the Core Values of your Startup, you can empower your Co-Founders and employees to make decisions that are consistent with your visions.

Now, let's push this logic even further!

If you create a set of Core Values, then it is possible for you to dramatically increase the productivity of your Startup Venture. 

Do you remember all of those tasks that a Startup Founder is constantly juggling? Deal Flow. Product Design. Hiring Pipeline. Funding Rounds. All of these are mission-critical tasks, without which a Startup Venture simply stalls and drowns, much less grow. (Never forget how important Growth is for a Startup Venture!) Eventually, all of these tasks simply become overwhelming for a single person, and so one of the defining skills of a Founder is to be able to delegate this work. 

By providing your teammates Core Values, you can shape and guide their actions through an articulated philosophy. You can count on their decision-making because they apply the same Core Values, the same Geometric core assumptions, that you would. And just like my team of mathematics students from the university, each member of your Venture Team should reach the same answer to every problem (or at least very damn close!).

Core Values ensure consistency!

Core Values are a Powerful Tool

So in short: Yes, Core Values are important.

It is important to understand that every aspect of your Startup should be geared towards improving the efficiency of your team and accelerating your business. Core Values are one of the most powerful tools that you have at your disposal to improve your Startup. They allow your team to make consistent decisions. They empower your team to perform at their best. They enable your team to trust each other. 

All of these things let your Startup keep swimming forward, instead of stalling and drowning! 

I understand that Core Values can seem “corny” or “corporate-ish”; and, believe me when I say that I am not the biggest fan of things that are “corny” or “corporate-ish”. However, I have seen first-hand how useful well-articulated Core Values can be; and, I have seen the costs of failing to empower decision making within your Startup Team.

At this point in my career, one of the first major tasks I set for myself is to define the Core Values of any Startup with which I choose to work because this will let me scale my team quickly and accelerate my product growth.

So if you haven't already, take some time (even if it is only one happy-hour) to articulate what your Core Values are!