Skip to main content

1. Core Values

Assessment Statement

The Core Values of the business unit are clearly defined by top management, well understood by managers, and guide decision-making.

Scoring Guide: Participants assess their organization using the following 5-point Likert scale:

Score
Description
5
Strongly Agree: Values are clearly defined, well understood, and guide decision-making.
4
Agree
3
Neutral: Values are defined but not well understood by managers.  
2
Disagree
1
Strongly Disagree: Values are not clearly defined by top management.

Interpretation

This KRA assesses the degree to which an organization’s core values are clearly articulated by top leadership, internalized by management, and applied consistently in guiding everyday decision-making. Core values are not merely aspirational statements, they are the anchor that provides stability to an organization’s identity, strategy, and behavior during both steady and disruptive times.

This statement gauges the maturity of values integration across three dimensions:

  1. Definition: Are the values articulated in a way that is clear and specific?

  2. Understanding: Do mid-level leaders and frontline managers comprehend what these values mean in practice?

  3. Application: Are values truly driving behavior, from strategically important decisions down to everyday decisions?

Example: Southwest Airlines, Score: 5 – Strongly Agree

Southwest Airlines’s core value, “Employees First”, is clearly defined by leadership and well understood by managers. During a financial downturn, instead of laying off staff, executives cut their own bonuses, reduced routes, and trimmed discretionary spending. Leadership explained that “if the company treats its employees well, the employees will treat their customers well,” demonstrating values-guided decision-making in practice.

 Reference: “The Role Core Values Play in Strategy Execution,” HBS Online Business Insights Blog (Harvard Business School Online) https://online.hbs.edu/blog/post/how-to-implement-core-values-in-the-workplace

Learn more here: Camillus, John C. 2011. "Organisational Identity and the Business Environment: The Strategic Connection." International Journal of Business Environment 4, no. 4: 306–314.