Following on from the previous article on the topic of core values, the question can be asked, how do I identify my own core values? And, how do we determine the core values of our Family Enterprise?
- Self-assessment
Self-assessment is a valuable tool for individuals seeking to determine their personal core values, especially in the context of family business governance. Looking in the mirror (metaphorically) can be challenging, and never more so than when examining the fundamental beliefs that drive your own attitudes and behaviours.
To embark on this journey, one can begin by reflecting on their own experiences, beliefs, and aspirations; by asking oneself probing questions about what truly matters in life and what principles guide their decision-making, individuals can gain insights into their own values. They can consider their reactions to different situations, their passions, and the qualities they admire in others. Honest introspection can help identify recurring themes and principles that hold significant meaning and provide a sense of purpose.
In considering your own life experiences, it can be useful to think about situations which have evoked extremes of emotion, such as feelings of great satisfaction, confusion, pride or shame. It is likely that such situations have involved one or more core values, perhaps unconsciously, where those core values are either being upheld or transgressed, either by yourself or by others. In considering such situations, it is relevant to reflect that while we may strive to uphold a core value which we hold precious, we are also imperfect beings and not capable of living true to our core values 100% of the time.
- Seeking feedback
Sometimes, others who are witness to your behaviours can give helpful feedback in identifying your core values. Seeking feedback from trusted individuals, such as family members, mentors, or close friends, can provide valuable perspectives on how others perceive one’s values and behaviour. Ultimately, self-assessment requires deep reflection, active exploration, and a willingness to confront personal truths, but the clarity gained in understanding one’s core values can lay a solid foundation for effective family business governance.
- Linking Behaviours to Core Values
Behaviours are tangible manifestations of an individual’s personal core values. They serve as a reflection of what someone truly believes and values, showcasing their character and guiding their actions in various situations. By closely observing someone’s behaviours, we can gain insights into their underlying values. For example, if an individual consistently demonstrates honesty and transparency in their interactions, it indicates that integrity is a core value for them. Similarly, if someone consistently shows empathy and compassion towards others, it signifies the importance of kindness and empathy in their value system.
Behaviours can also reveal how individuals prioritize their values. For instance, if a person consistently makes time for their family and prioritizes their well-being, it indicates that family and relationships hold significant importance to them. On the other hand, if someone consistently pursues personal growth and invests in learning and skill development, it demonstrates a value for continuous improvement and self-development.
Moreover, behaviours can also highlight the consistency or inconsistency between stated values and actual actions. For instance, if an individual claims to prioritize sustainability but consistently engages in environmentally harmful practices, there may be a misalignment between their stated values and their behaviours.
- Identifying Shared Family Values
In order to properly harness the power of shared core values in building family cohesiveness, a family needs to come together and identify which of the core values of individual family members are common to the family group. This can be a difficult process for a family to undertake, as there is no guarantee that each individual will share common core values with other family members. In fact, it is possible that some core values of family members may contradict those of other family members; for example, one person’s core value of “tradition” (which could suggest resistance to change) may be in conflict with another’s core value of “innovation” (which suggests willingness to consider change).
In fact, it is highly unlikely that the individual members of a family group will share the same set of core values, but it is also likely that there will be core values shared by either some or (hopefully) a majority of family members.
Family conversations on this topic can become highly charged and emotional, and many families benefit from using an independent non-family facilitator during the process.
Robert Powell FCA GAICD is the founder and Managing Director of Family Boards Pty Limited, a specialist consultancy helping family companies achieve best practice in board governance and risk management. He an accredited specialist adviser member of the Family Business Association (AU), a Graduate of the Australian Institute of Company Directors, and a Fellow of Chartered Accountants Australia and New Zealand.