Our core values and principles act as a moral compass, helping to inform our thinking, guide our decisions and drive our actions.

What is the definition of a core value or principle?

According to the Oxford Dictionary, a core value is:

“A principle or belief that a person or organization views as being of central importance.”

Whether we can articulate them or not, we all have such beliefs that shape our thoughts, decisions and actions.

Core values remain true. As Jim Collins and Jerry Porras stated in their book Built To Last (1994), core values are inherent and sacrosanct; they can never be compromised, either for convenience or short-term economic gain.

If we do compromise our principles, it is likely to lead to pain in the long run. Conversely, we are more likely to he happy and fulfilled if we know and follow our core values. As Stephen Covey notes:

“Peace of mind comes when your life is in harmony with true principles and values and in no other way.” – Stephen R Covey

One of the most important aspects of core principles is that they help us make decisions. This is why we often compare values and principles to fixed navigation aids such as the North Star or magnetic north, as displayed on a compass. We use our values to guide our way, especially when we are finding it hard to see an obvious route forward.

“It’s not hard to make decisions when you know what your values are.” – Roy Disney

The Moral Compass Tool

Have you ever been lost, not knowing which way to go?

There have been many times in the mountains when I have suddenly found myself in fog, hardly able to see. It is very easy to make a mistake in these moments and wander off in the wrong direction. The cloud can be disorientating. Sometimes you can be sure you are heading the right way until you establish your true heading.

At times like these you must rely on your compass rather than what you can see or even what you feel is the right way to go. The compass, used properly, can help guide the way. And it is the same for our moral compass. When we have to make challenging decisions, where the way ahead may not be obvious, we have to rely on that inner compass.

Therefore, when it comes to The Right Questions toolkit, our core values are represented by the compass. This is a fitting metaphor as many people talk about their moral compass. This is effectively the set of principles that aid us in making choices, be those ethical or everyday decisions.

“I have learned that as long as I hold fast to my beliefs and values – and follow my own moral compass – then the only expectations I need to live up to are my own.” – Michelle Obama

As with a real compass, to be able to use our moral compass effectively, we need to understand the forces that pull on the compass needle. In this case, we need to identify the core values – the hidden forces – that push us in certain directions.

As discussed previously, examining our passions, priorities and personal stories can all give us insights into our core principles. But sometimes finding a word to describe these tenets is a challenge, and that is why a couple of other exercises can help identify and name our values.

The Quest

Understand your values, unlock your purpose, set your priorities, achieve success. Click here to sign up and get the 1st stage for free!

 The common work and life principles list exercise

A good exercise to identify your core principles is to use a list of example values. Once you have the list of values you can:

1. Score each word in terms of how important you think that principle is to you.
2. Then score each word in terms of how closely your behaviours and actions match that principle (1 hardly at all through to 10 being always).
3. Add the importance and action scores together for each value.
4. Identify the highest-scoring (most important) core values.
5. If you have more than 3-5 principles scoring equally highly, score them again. This time using fractions, or putting them into priority order.
6. Once you have identified your top 3-5 values, write out a personal definition of why the word is important. Also, describe the actions that reflect that principle.

Here is an example table and a list of common values and principles for reference. You can use the template either by copying it into a spreadsheet or printing it out:

	Value	Importance  (1-10)	Action (1-10)	Combined Score
1	Accountability
2	Accuracy
3	Achievement
4	Adventure
5	Altruism
6	Appearance
7	Ambition
8	Autonomy
9	Assertiveness
10	Balance
11	Beauty
12	Being the best
13	Belonging
14	Boldness
15	Calmness
16	Carefulness
17	Challenge
18	Cheerfulness
19	Clarity
20	Commitment
21	Community
22	Communication
23	Compassion
24	Competitiveness
25	Connectivity
26	Consistency
27	Contentment
28	Continuous Improvement
29	Contribution
30	Control
31	Cooperation
32	Correctness
33	Courtesy
34	Creativity
35	Curiosity
36	Decisiveness
37	Democraticness
38	Dependability
39	Determination
40	Devoutness
41	Diligence
42	Discipline
43	Discretion
44	Diversity
45	Dynamism
46	Economy
47	Effectiveness
48	Efficiency
49	Elegance
50	Empathy
51	Enjoyment
52	Enthusiasm
53	Environment
54	Equality
55	Excellence
56	Excitement
57	Expertise
58	Exploration
59	Expressiveness
60	Fairness
61	Faith
62	Family
63	Flexibility
64	Fidelity
65	Fitness
66	Fluency
67	Focus
68	Freedom
69	Friendship
70	Fulfilment
71	Fun
72	Generosity
73	Goodness
74	Grace
75	Growth
76	Happiness
77	Hard Work
78	Health
79	Helping Society
80	Holiness
81	Honesty
82	Honor
83	Humour
84	Humility
85	Independence
86	Ingenuity
87	Inner Harmony
88	Inquisitiveness
89	Insightfulness
90	Integrity
91	Intelligence
92	Intimacy
93	Intuition
94	Joy
95	Justice
96	Leadership
97	Legacy
98	Love
99	Loyalty
100	Making a difference
101	Mastery
102	Merit
103	Nature
104	Obedience
105	Openness
106	Order
107	Originality
108	Partnership
109	Patriotism
110	Perfection
111	Personal growth
112	Piety
113	Positivity
114	Power
115	Practicality
116	Privacy
117	Preparedness
118	Professionalism
119	Prudence
120	Quality-orientation
121	Recognition
122	Reliability
123	Resourcefulness
124	Respect
125	Restraint
126	Results-oriented
127	Rigor
128	Romance
129	Security
130	Self-actualization
131	Self-control
132	Self-expression
133	Selflessness
134	Self-reliance
135	Sensitivity
136	Serenity
137	Service
138	Shrewdness
139	Simplicity
140	Soundness
141	Speed
142	Spirituality
143	Spontaneity
144	Stability
145	Status
146	Strategic
147	Strength
148	Structure
149	Success
150	Support
151	Teamwork
152	Temperance
153	Thankfulness
154	Thoroughness
155	Thoughtfulness
156	Timeliness
157	Tolerance
158	Traditionalism
159	Trustworthiness
160	Truth
161	Understanding
162	Uniqueness
163	Unity
164	Usefulness
165	Vision
166	Vitality
167	Vulnerability

“Principles are fundamental truths that serve as the foundations for behaviour that gets you what you want out of life. They can be applied again and again in similar situations to help you achieve your goals.” – Ray Dalio

The values cards exercise

Another great way to work out your core values is to use a deck of cards which have example words printed on each card, one principle per card. You can either purchase these decks or create your own. For example, you could write out or print the list of principles given above to do this exercise. Once you have a values card deck you can follow the steps below to get to your top three core values.

“If you have more than three priorities, you have no priorities” – Brené Brown

Values card deck instructions:

1. If there are any blank cards separate these out first.
2. Think of some values or principles that you think are important to you. You can write these (one word per card) on the blank cards.
3. Now sort the pack of cards into three columns of roughly equal size. One column has the most important values to you personally. Another has those of middling importance, and the third contains the principles that are of lesser importance to you.
4. When trying to choose between values with similar meanings, pick the word that resonates the most with you.
5. Take away the columns of cards containing the values of middling and lesser importance.
6. With the remaining cards, now separate them again into three columns. Again, reflecting what you believe are your highest, middling, and lowest-importance principles.
7. Keep the most important cards, once again stacking the others to one side
8. With this final selection now put them into priority order, aiming to select your top three personal values.
9. Now, for these top three values, write your own definition of what they mean to you. Describe the sorts of behaviours that are reflected in this principle.

Using and refining your core values

Once you have identified your top 3 core values it is worth spending some time analysing how you use them. Here are some simple ways to do this:

• When you have to make a choice in the coming days, think about how those values impact the decision.
• Set some time in the diary, a week or month from now so you can reflect upon your chosen values. Ask yourself, do they still feel right? How have your actions over that period reflected your values?
• In another 3-6 months go through the list of principles or values card exercise again and compare your results. Did you come up with the same three core values?

It is worth doing this as it is quite hard to identify your top three values in your first go. Also, our present circumstances influence our priorities at any given moment. Therefore, it is important to examine our values over time. This ensures we have identified the right ones and can properly express what they mean to us.

Most importantly, this reflection allows us to highlight the behaviours that embody those values that are most important to us. We can then make sure that our core values become verbs that drive action, not just nouns that remain conceptual.

When you have properly identified your core values you can see how they impact your everyday life. Don’t just react to circumstances, use your inner compass to direct your behaviours, your decisions and your life direction. As Stephen Covey encourages us:

“Live your life by a compass, not a clock.” – Stephen R. Covey

The ‘why’ represents our values.  Our values are part of our identity; they are the things we love, the ideals we prioritise.  They are central things that define why we have a certain vision, why we do the things we do, why we attract or are attracted to certain people. I often think values as being summed up by 3 Ps; our:

• Principles
• Passions and
• Priorities

Values shape our beliefs, our worldview and the paradigm that we operate from. These are often things we hold in common with others at one level, but the particular combination and application of the values make them unique to us as an individual or specific organisation.

“I’d asked around 10 or 15 people for suggestions. Finally one lady friend asked the right question, ‘Well, what do you love most?’ That’s how I started painting for money.” 

Andy Warhol

Should we ask the question ‘why?’

People often avoid asking ‘why’ questions because they can elicit an emotional response. They can make people defensive, or make the questioner appear judgemental. But if we fail to ask ‘why’ questions of ourselves we can really miss a trick.  If, or rather when, things get tough people do start to ask ‘why’ questions. We need to make sure we have some answers before then, particularly if you are a leader.  Let’s face it; things will inevitably get difficult at some point on our journey.  In challenging times we need to understand the deep things that motivate us towards a vision or mission.  It is much better to get those ideals clear ahead of time rather than having to discover them in a time of crisis.

When it comes to why questions we can learn from young children, as they are very good at asking the question ‘why?’  They will often keep asking why until they get a satisfactory answer; children are hard to fool! You can tell when children are following this line of questioning as there are usually accompanied by a red-faced adult who is becoming increasingly irate! The parent’s frustration grows as they start to run out of responses and realise that perhaps they do not actually know the answer themselves.  As adults, it seems we are much better at fooling ourselves and settling for a more superficial answer to a why question.

Simon Sinek identified the importance of asking why in his book Start with why. He argues that people who know their ‘why’ are the ones who lead and inspire others. Therefore we need to ask why, but we can also choose to construct our why questions in such a way that is less confrontational. For example, asking someone ‘what motivates you?’ is often better than ‘why are you doing that?’

“People don’t buy what you do; they buy why you do it. And what you do simply proves what you believe”

Simon Sinek

The 5 Whys

Asking why several times over and applying the why to each subsequent answer can help us dig down to the motivational root of an issue.

I was out running one day and spotted someone fishing by a riverbank. Apart from eating the fish, I had never really understood the allure of fishing, so I asked them why they enjoyed it.  Their first answer was because they enjoyed being outdoors.  Instead of asking directly ‘why’ again, I said: “that’s interesting, I love being outdoors too, what particularly do you like about it?” They answered that it was the only time they really slowed down and felt at peace.  When I questioned further they said that the most important thing was getting the time to reflect.  I then left them to enjoy their peace and reflection but by asking ‘why’ several times over I had gained a deeper understanding into the motivations of that person and learned that fishing was not just about catching fish!

The art of asking why in this way was used by great effect by Sakichi Toyoda who developed the ‘5 whys’ approach to problem-solving within the Toyota Motor Corporation and helped to revolutionise their manufacturing and make Toyota production far more efficient. Every system and action was analysed by asking why over and over until the primary reason was revealed and the process could be refined.

Reflection question:

• Which work processes could you do this for? Choose a process that you follow and ask why you do it. Keep asking why until you get the real reason for the existence of the process. Once you know the answer, consider, how could this be done better?

Revealing our values

So we need to look at why we do things and ask ‘why’ of ourselves many times over.  Then, as we delve into our answers we begin to see our principles and values revealed.

As we go through this process we will soon see that there are actually many things that we value or that we would agree are good principles.  The key here is working out what are the things that you value the most.  For example, you could say that you value making new friends as well as maintaining long-standing relationships. But, if in looking at both these activities you see that you spend a lot more time on one than the other, then arguably that is the one you value the most.  Equally, you could say that you value two worthy charities. But again, the one you give the most money to would probably give a good indication of where your priorities lie.

These are simple examples but the principle applies even to more abstract concepts.  Loyalty and integrity are both excellent things to value. It might require some careful thought working out which one you prioritise most, but it can be done. There are further exercises in the posts and links below to help you.

Identifying core values

You will probably start with quite a long list but it is a worthwhile exercise to drill down to a list of 4-6 core values for yourself or your organisation. Any more than that and it becomes harder to see how your values differentiate you from other people.  If you are an organisation trying to discover, agree and instil values into your workforce it is also hard for people to remember many more than this!

Then, of this shortlist, identify your top two. Brené Brown (author of Dare to Lead) has done a lot of research that backs up the importance of knowing your top values and priorities.

Refining the expression of your core values

As you hone down to your core values it can also be useful to use adjectives to really help capture the particular nature of a value.  So, for example, you might value of community, but what sort of community?  Is it close community, global community, fun community, caring community, inclusive community, or diverse community you are thinking about?  Adding the right adjective moves you closer to your unique perspective and combination of values.

There are further exercises and advice on how to identify and refine your values in the post What are your personal values?

The importance of values

The process of exploring your values is one worth spending time on. Values are at least as essential as the discovery of our vision and mission. Don’t worry about getting them perfectly captured, especially on a first try. Even our values evolve over time so think of this as a cyclical process, as with other decision making approaches. Do some thinking, record or communicate your thoughts, and then return to reflect on them again regularly in the future.

Once we have identified our values we may not always need to refer to them all the time but they are always there steering us, even if it is just at a subconscious level.

When I was in the Alps for the first time I had a particular dream in mind: a dream of standing on the summit of Mont Blanc.  Success was therefore easy to define; my aim was to get to the top of Mont Blanc and back safely.  Most of the time the vision was there to see, as Mont Blanc loomed large above me. The mission was also clear when I looked at the route on the map.  But, as I climbed higher up and the cloud started to roll in, I could no longer see the mountain clearly.  I could see the route on the map but I could not relate it to the ground.  It was at this point that I had to rely on my compass and altimeter to keep me on the right track.

Values are like a compass; they help us keep on track even when the route to achieving our dream is unclear or the mission is challenged.  Values are therefore invaluable.

“He who has a why to live for can bear almost any how.“

Friedrich Nietzsche

Reflection question:

• Once you have identified them, what can you do to keep your values in mind?

One thing I do is to have my personal values and vision at the top of my to-do list. My list of tasks is organised by role and having my values at the top helps me to weigh my priorities correctly.

If you want to read more about values then check out why things we value define our personal identity.

Values are central; they go to the very core of us, to our personal identity.  Our principles are perhaps the most important things as, whether or not we live out our dream or achieve our mission, they are most likely to remain intact. Values are a foundation and a plumb line as well as a moral compass.

“We are not in control, principles control. We control our actions, but the consequences that flow from these actions are controlled by Principles.”  Stephen R. Covey

Our decisions and actions flow from our principles and in this way our values help to define us; they are part of our identity.  Our exploration and discovery of our principles is therefore a discovery of self.  As one anonymous observer noted: “Every one of us has in him a continent of undiscovered character.  Blessed is he who acts the Columbus to his own soul.”

So what do we know about our own identity?  What do we value in ourselves and others?

Think about the first two questions you are generally asked when you meet someone.  If you are from the UK, the US or a large part of the world it is likely to be “what is your name?” (usually meaning your first name) quickly followed by “what do you do?”

What are people really asking when they enquire about what you do?  They are asking about your job, profession or vocation for sure.  But the fact that this comes out so quickly when we meet people indicates how highly we rate work in our culture and how closely we identify ourselves with what we do.  When people ask what you do they are actually asking who you are.  They are hoping for an answer that will help them quickly categorise you.

What do you do?

I went along with this for many years because, for a long time, it was easy.  I started out as an Army Officer working as a bomb disposal expert.  This was an easy title, and one I enjoyed using, as it sounded impressive.  I enjoyed seeing the raised eyebrows and the endearing look of respect (that I so little deserved in reality).  Next, I was a Project Manager, working in the construction industry.  Again an easy label, although I must admit it sounded less impressive at parties than something with ‘Bomb’ in the title.  But hey, I was married by then so who was I trying to impress anyway?  Well everyone actually!

The real challenge came with my next job, working for a rapidly growing church.  My job description was constantly evolving and therefore it was hard to describe exactly what I did, especially as I was not actually a church minister.  I found that introducing myself generally required a long explanation.  The process of outlining what I did was just long enough to watch people’s eyes glaze over, stare down their drinks or look furtively towards the exit.

When I moved on again and started working as a management consultant it was not really any easier, as the title ‘consultant’ invokes so many different things.   You may be motivated by helping individuals and equipping organisations, but one has a lot of justification to do when people look at you with an expression that seems to imply ‘consultant’ is synonymous with ‘parasite’!

Training dolphins to be government assassins

And then, at one networking event, I had a moment of clarity.  I started introducing myself in this way: “Hi, I’m Simon, I train dolphins to be government assassins.”  Once again I had attained the level of eyebrow movement that I have attained as a bomb disposal officer (but I guess more out of surprise than respect).  Life was easy once again (for a moment at least) but it did make me think. Why do people, including me, care so much about titles?  Why would I be prepared to embellish or even make up something about what I do? What does it say about me? The answers to these questions are pretty challenging.

Are we just what we do?

If asked about your identity, like me, you may not initially answer beyond your name and job but of course, there is much more to us than that.  One way we can discover something more about our identity is by what we think when we look at other people.  As we walk down a street, enter a room or sit staring out of a café window we are constantly assessing those around us.  We compare looks, wealth, car, house, job, children, happiness, clothes, phone.  In conversation, this process continues through things like accent, vocabulary, demeanour, politics, religion, aspirations and education.

Of course, much of what we first think is not real; we try to make a value judgement in a fleeting moment, judging the book by its cover.  Not surprisingly this process actually tells us more about us than about the other person, because how we classify others speaks volumes about how we perceive ourselves.  If we are putting someone else in a certain box or on a certain level what does that say about our position?  I for one did not think I had a pride problem until I thought about this!

Even this internal classification can be somewhat misleading.  We all have roles that we play and we often wear masks that represent an aspirational self, the person we want to show to the world, rather than the real us.  But even if this ideal self is not the true self we can learn more of ourselves. This is because even if we are aspiring to be something or someone else it once again reveals what we value.

What is your worldview? What are your beliefs?

Work, position, pension, benefits package and job title can be important to us.  Our perception of our perfect partner, spouse and family can be the more presentable faces of simple base motivators.  Money, sex and power have always been identified as strong drivers, even if they are hidden under more subtle layers of respectability.  Our identity can also be wrapped up in more ethereal things.  Our worldview, philosophy, faith or politics can define us because they affect the way we live.

None of these things needs to be necessarily good or bad in themselves, but for everything we prioritise we need to ask why we care about it so that we can understand it further and get under the skin of our thinking.  We need to be aware of the things around which we construct our lives.  We need to be certain of the foundation we are building upon.

Worth-ship

If we value something very highly we give it worth above other things or even ultimate worth. We build our lives around it. This prioritising, giving position, reverence or regard was called ‘worschipe’ in Middle English.  Today its name is ‘worship’.  In other words, even if you do not consider yourself religious we all give something religious value.

Here is some insight from the influential writer David Foster Wallace on the subject:

“Because here’s something else that’s weird but true: in the day-to-day trenches of adult life, there is actually no such thing as atheism. There is no such thing as not worshipping. Everybody worships. The only choice we get is what to worship.

And the compelling reason for maybe choosing some sort of god or spiritual-type thing to worship — be it JC or Allah, bet it YHWH or the Wiccan Mother Goddess, or the Four Noble Truths, or some inviolable set of ethical principles — is that pretty much anything else you worship will eat you alive.”

The Importance of knowing where your priorities and values lie

David Foster Wallace then goes on to illustrate the dangers we face:

“If you worship money and things, if they are where you tap real meaning in life, then you will never have enough, never feel you have enough. It’s the truth. Worship your body and beauty and sexual allure and you will always feel ugly. And when time and age start showing, you will die a million deaths before they finally grieve you. On one level, we all know this stuff already. It’s been codified as myths, proverbs, clichés, epigrams, parables; the skeleton of every great story. The whole trick is keeping the truth upfront in daily consciousness.

Worship power, you will end up feeling weak and afraid, and you will need ever more power over others to numb you to your own fear. Worship your intellect, being seen as smart, you will end up feeling stupid, a fraud, always on the verge of being found out. But the insidious thing about these forms of worship is not that they’re evil or sinful, it’s that they’re unconscious. They are default settings.

They’re the kind of worship you just gradually slip into, day after day, getting more and more selective about what you see and how you measure value without ever being fully aware that that’s what you’re doing.”

We may not believe in God but we all choose to give something ultimate worth and choose to build our lives around it. It is important that we know what that thing is and ask ourselves why we value it so highly.

Digging down to our principles

Self-exploration can be a scary journey but it is an essential one.  We need to know about our principles because what happens when these things are challenged or even taken away? What are we left with?  Are our values vulnerable?  If they come under attack could everything else come tumbling down?  We face long-term insecurity if our values are unreliable or temporal things, even if they are good things such as people or helpful things such as possessions.

So what are your values? How do they affect your identity? I would encourage you to take some time out to reflect seriously on these questions.

You can explore these questions and discover more about your own values by reading: What are your personal values?

“Men go abroad to wonder at the heights of mountains, at the huge waves of the sea, at the long courses of the rivers, at the vast compass of the ocean, at the circular motions of the stars, and they pass by themselves without wondering.”  St. Augustine

What next?

You may want also want some help, delving deeper into your values and identifying your goals. I have the pleasure of seeing amazing, positive, transformations in the individuals and organisations I work with. If you would like some assistance too, in person or online, then please do drop me a line. You can email me via the contact page.

What is the most important decision you have ever made? It might have been choosing your romantic partner, selecting your school, or deciding upon your career. How did you make that decision? Whatever process you applied – consciously or otherwise – to your choice, that decision was informed by your personal values. This is what values-based decision-making or principle-based decision-making is all about; understanding how our precepts and beliefs inform our judgements.

Why is values-based decision-making important?

We might think that our biggest decisions would be based upon pure logic and critical reasoning, but we would be wrong. Just think for a moment; if your spouse or partner asked you why you wanted to be with them, how would you reply? Would you immediately say,

“well I considered the factors, and – following an analytical process – decided that you were the most rational choice of partner, presenting the best statistical chance of a successful union (given the limited alternatives)”?

I doubt that would get a kindly reception.

You are more likely to answer that it is because you love them. But then you must think about the follow-up question of why do you love them? When you explore that question you can see that, knowingly, or otherwise, you have made a values-based decision. The reasons for loving someone are bound up with your principles, beliefs, and passions.

When I first started to think about decision-making, during my time as a bomb disposal officer, I did use to think that decision-making was largely a rational process. It took some near-death experiences for me to realise that the neuroscience of decision-making is much more complicated. Slowly I came to appreciate the important psychology of heuristics and bias, as well as understanding the importance of assumptions and how values underpin our decision-making.

Values, principles, and ethics in decision-making

The book that introduced me to the concept of principle-based decision making was The Seven Habits of Highly Effective People. Stephen Covey points out:

“We are not in control, principles control. We control our actions, but the consequences that flow from these actions are controlled by Principles.”

Stephen R Covey 

So, the fact is that – whether we know it or not – our personal values drive our decision-making and influence the choices we make. But this is not a new discovery and Covey was not alone in this idea. For example, Gandhi said,

“Your values become your destiny.”

Gandhi

And this school of thought goes back much further. The idea of making right judgements is the field of ethics in philosophy. In Western philosophy, it was Socrates, Plato and Aristotle – the so-called founding fathers of ethics – who started this tradition.

Ethical decision-making is not just about choices in medicine (such as when to end care) or complex moral conundrums faced by society (such as assisted suicide). You cannot separate ethics from personal values and our everyday behaviour. As well as the moral code of the society we live in, we all have our own inner sense of morality that informs our actions. The ability to make these choices, according to our values is inextricably tied to our understanding of freedom. Aristotle summed it up this way:

“Freedom is obedience to self-formulated rules.”

Aristotle

How do values influence our choices?

My favourite analogy for personal values is that they are like a compass. The whole point of a magnetic compass is that it points to the North, no matter which way we are facing. Even when we cannot see properly – for example when stuck in fog or deep in a jungle – the compass gives us reliable data about our direction.

Personal values do the same for us. Whatever our circumstances, our values are an inner compass, informing us of whether the direction we are choosing is in line with principles or not.

“I have learned that as long as I hold fast to my beliefs and values – and follow my own moral compass – then the only expectations I need to live up to are my own.”

Michelle Obama

To complete the analogy, it is worth remembering that a compass can be affected by magnetic interference and occasionally not be trusted. In the same way, even our moral compass can be thrown off by cognitive bias. That is why no one aspect of decision-making can be considered without respect to other facets. We must be aware of all the various neural processes if we really want to make good decisions.

Values in decision-making for organisations 

Ray Dalio is an expert in how values affect decision-making in an organisation. In his book, Principles, he shares the values that he has identified and implemented – both in personal and business life. What makes Ray Dalio’s company Bridgewater, so impressive is the way they have built their values into the very fabric of the business.

For many organisations, their company values are just nice-sounding universal values (such as trust or creativity) that have been decided upon by an executive, but with little thought to how these values should truly affect the culture of an organisation. Many employees can barely remember their company values, let alone explain how they should inform their judgements and behaviours. Not so at Bridgewater.

Building a company from the values up

At Bridgewater, not only did they identify the company values, but they also then built organisational processes to reflect those principles, even writing code to embed these principles into automated decision-making. With each decision made these values are tested, the results examined, and the algorithms refined in a constant process of improvement.

This approach, backed up by the transparent way Bridgewater makes choices, empowers people at every level in the business to make decisions. Decision-making is not the preserve of management or the executive suite. At Bridgewater, this empowerment has fuelled effectiveness, growth and profitability.

As Roy Disney, the co-founder of another values-driven company observes,

“It’s not hard to make decisions when you know what your values are.”

Roy Disney

It is worth reflecting upon. What are the principles of your organisation and how do they inform processes? Do the actions and behaviours of employees reflect the core values? Are people empowered to make decisions?

Principle-based leadership

This sort of organisation is led by a leader who understands the importance of values; someone who knows their own principles and lives according to them. We call that integrity; someone who walks the talk, and integrity is one of the most frequently listed essential traits of a leader.

Stephen Covey wrote about this sort of leadership in his other popular book, The Principle-Centred Leader, but this approach to leadership also has a lot in common with servant leadership, transformational leadership and authentic leadership, all of which emphasize leaders of moral principle and purpose.

So how do you start?

So, having seen that understanding personal values is important as they affect our choices, what do we do about it? The first step in making better decisions is to identify the principles that guide you in your judgements. This will help both you and the people you work with. As Ray Dalio points out,

“The most important thing is that you develop your own principles and ideally write them down, especially if you are working with others.”

Ray Dalio

Take a moment to think. Can you write down your top values? Try to think of the top principles that you adhere to. I recommend 5 to 10 as a maximum. If you are a bit stuck then there are various tools, exercises that can help you do this and if you would like some help then read my post on What Are Your Personal Values?

I watched the target intently. I could see the picture rise and fall in my sights as I breathed, the crosshairs tracking a vertical line as my lungs expanded and contracted. Having positioned myself carefully, I aligned my body so that I naturally achieved my point of aim. My rifle was held securely, nicely balanced, but without any tension in my muscles. Feeling calm and focused, I let the crosshairs sink once again, then held my breath as they came to rest on the centre of the target. I increased the pressure on the trigger, never letting the crosshairs move from their position. There was a jolt, as the shot released, but the rifle settled back into position, aligned to the midpoint of the target. I was hundreds of metres away, but I knew that I had hit it dead centre. I knew because I had applied my marksmanship principles, and everything had been in balance. It felt right.

Understanding and applying principles

Target shooting can be very satisfying but, as I found out in my military training, that does not mean that it is easy. That is because even though the principles of shooting are simple, maintaining those standards takes focus and practice. In that way, shooting is a metaphor for other areas of life. Even when we know the theory of how to do something the practice can be hard.

It is particularly hard if we do not know the fundamentals in the first place. Without understanding the key principles of shooting I might never have become a good marksman, no matter how much I tried. As Anders Ericsson and Robert Pool point out in their book Peak, there is an important difference between practice and effective practice. If we want to get better, we need to focus on doing things correctly, according to the appropriate standards.

So, what are the right standards? How do we know the principles to live by? This is the focus of this series on understanding values. The more I teach decision-making, facilitate leadership courses, or coach people through life’s challenges, the more I see the importance of understanding and acting upon our personal values.

The need for balance and alignment

Much of the importance of values comes down to balance. There are so many reasons that we need balance in life. Whichever aspect of our existence you look at – such as work, relationships, or health – it is a lack of balance that causes problems.

We need alignment in each area of our lives in order to flourish. To lead we need integrity; a boss needs to walk the talk if they are to be truly effective. To make effective decisions we need to make sure our choices fit our values. It is similar to our wellbeing; to be happy our expectations cannot be too far removed from reality. Our self-esteem is also dependent upon balance. We need to behave in line with our principles and live up to our standards. This is why it is so important to know our values and understand how to monitor them.

Just as your car runs more smoothly and requires less energy to go faster and farther when the wheels are in perfect alignment, you perform better when your thoughts, feelings, emotions, goals, and values are in balance.

Brian Tracy

How to work out your values and monitor your principles

I regularly take time out to re-examine my values and reflect on them to make sure they are captured accurately and to measure how I am doing against my principles. I also tend to look at my principles first before I go about setting goals. As with target shooting, you must point in the right general direction before you home in on a specific target.

It may be that you already have a clear idea of your values, or it could be that you have never really considered your personal principles. Either way, here is a good exercise to go through to identify, refine and test your ideals. Here are the steps to follow:

1. Identify a long list of values

2. Prioritise the list

3. Assess your principles against your actions

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1. Identify a long list of values 

First, write out a long list of words that sum up your personal values. There is no limit on how many phrases to use at this stage. It is worth doing some brainstorming and thinking about the words that best sum up your principles. The choice of words is important as our interpretation of language is nuanced and personal. The terms you choose must connect with you and express both your head and your heart.

Remember, as noted in my earlier post on why what we value matters,

• Values are principles. They are ideals, truths, or propositions that we aspire to.
• Values are standards. They are the formal and informal precepts, regulations, and rules we live by.
• Values are judgements. They are the benchmark, the plumbline, the compass that informs our decision-making.
• Values are beliefs. They are the tenets, convictions, and ideas we put our faith in.
• Values are priorities. They are our motivations, the things that take precedence, that we give importance to and affect how we use our resources.

Once you have a list, or if you are struggling to think of the right words, then you can use example inventories of popular principles as a prompt. You can find such examples in What Are Your Personal Values where I have listed over 150 common values.

2. Prioritise the list 

Once you have a comprehensive list of values the next thing to do is to prioritise the list. Initially whittle it down to ten, then aim for five or fewer. The reason to do this is to identify the most important principles, the ones that dominate your decisions and behaviours. To do this you may want to take your initial list and score each value out of ten. If you still need to reduce the list then do direct comparisons between the words you have chosen, ask yourself, if I had to choose between x and y which would be the most important?

Once you have your top five values then take some time to write out what they mean to you. As mentioned earlier, the exact meaning of a term can be very individual so write out a short sentence to define what that standard means in terms of informing your actions and decisions. This is very important. The value does not exist as just a conceptual ideal, it must be understood in relation to your thinking and behaviour.

3. Assess your principles against your actions  

The next step is then to assess each of your top principles against your actions. Here you need to be brutally honest with yourself. Reflect on your day, your week, your month and give yourself a score from 0-10 in terms of how close you lived up to your standards. Also, reflect on other big life moments and decisions, or when you were particularly happy or sad, how did you align with your values at those key times?

Examining the gap between the values we espouse, and our actual behaviour can be very revealing. Here are some common things to look for:

Continual misalignment

If there is a continual misalignment then we must ask ourselves if we really hold to that principle. It might be that we think we value something because it is a standard upheld by our culture, family, or organisation. It may well be a good precept, but it may not drive us personally. If that is the case, you might want to go back to the prioritisation exercise and see if there are other values that better describe your actual choices.

Temporary misalignment

Often, we find that we have strayed from our principles in a particular choice or fallen short of our principles in a given situation. This is not a long-term trend, more of a temporary blip. These can leave us feeling unhappy or anxious until we resolve the issue. Once you have identified the instance where there was a problem you can reflect on what you need to do to bring things back on track. Is there a decision that needs to be changed, a relationship that needs to be mended, or a goal that needs to be set? Whatever it is, work out what action will restore your balance.

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Apply your principles and maintain your aim

If you want to achieve your aim it is not enough just to know what your target is. You are unlikely to hit the target if you are facing the wrong way. Therefore, you need to know your guiding principles if you truly want to succeed.

Whether you want to achieve a goal, get a better balance in life, develop as a good leader, or improve your decision-making, all these things are dependent upon understanding your personal values. The better you understand your own standards, the happier and more effective you will be.

So, take some time to:

1. Identify a long list of values
2. Prioritise the list
3. Assess your principles against your actions

Seeing how close you align with your principles is foundational to creating a meaningful plan for any self-improvement. So, check your values today but then frequently take time to see how you are measuring up to your standards.

Apply your principles, maintain your aim, and you will hit the target!

When I was about ten years old, I decided to run away from home and ran (unexpectedly) into an ethical issue. I can’t remember exactly why I wanted to run away (as my life wasn’t exactly bad) but I do remember that I strolled out of the house carrying nothing but a penknife. I was obviously confident in my survival skills and overly trusting that warm weather would continue!

With my elementary school logic, I decided that a hole in the ground – in the woods not far from my house – was the obvious place to start my new life. As this den was also known to my friends it was not long before one stumbled across me as I cleared the twigs from my future bed space.

“What are you doing?” My friend asked me. “Making camp.” I replied, “I have run away from home so don’t tell anyone!”

My friend wandered off and I continued working. Then, about twenty minutes later my friend arrived back. Behind him stood my dad. I remember looking into my friend’s eyes, feeling betrayed but also knowing they had done the right thing. I was outraged and relieved all at the same time.

What are ethics and why are they important?

At that stage in life, I had no idea what ethics was, but I did intuitively know that my friend made a courageous moral decision that day. Ethics is simply that; it is making good or right choices. That includes big ethical dilemmas, such should we limit artificial intelligence or genetic engineering, right through to more everyday choices, such as whether you help yourself to extra stationery at the office for personal use at home.

Making good decisions is not easy. We might have an intuitive feel of what is right or wrong but sometimes the answer is not obvious. This is particularly the case when various values come under tension.

Taking my running away as an example, my friend had to balance the value of loyalty against that of care. Loyalty might have persuaded them to keep quiet as I had shared something in confidence, but out of care for me they knew the right thing was to tell my parents.

Therefore, sometimes values on their own are not sufficient. In these moments, where good values are in tension, we can employ a decision-making tool to help make the best ethical choice.

How to make ethical decisions

One such technique has been developed by The Ethics Centre in Australia. The Ethics Centre is a not-for-profit organisation that promotes the use of ethics in everyday life and decision-making. They suggest a decision-making model based on considering values, principles, and purpose.

In this context (and using the wording of The Ethics Centre):

• Values tell us what’s good – they’re the things we strive for, desire, and seek to protect.
• Principles tell us what’s right – outlining how we may or may not achieve our values.
• Purpose is your reason for being – it gives life to your values and principles.

Of course, to employ this methodology you must first know what your values, principles and purpose are, so let’s take some time to consider each in turn.

Values

Values are things we give worth, things we prioritise. The values (or virtues) we aspire to come in different forms, such as:

• Personal values (the ones we prioritise as an individual)
• Corporate values (the ones we hold in a community or organization such as a company’s values)
• Universal values (ones that are held in common more globally such as the UN Charter of Human Rights)

Therefore, the starting point, when making a decision, is working out which values are the most important ones in the circumstance. If you have never properly identified your values, then I would recommend you discover your top 3 personal values.

Principles

Principles help us think about what is right or wrong and, in this way, they complement values. These principles are essentially algorithms for behaviour. For example, when working in the British Army and considering a course of action the principles I was taught to apply can be summed up in the following question:

“Is this action lawful, appropriate, and professional?”

Many of our principles have a basis in religion. For example, one of the principles I (like many) try to live by is the Golden Rule. The Golden Rule is the idea of treating others as we would like to be treated and this precept is reflected in various spiritual traditions. For example, the Hindu Mahabharata states:

“One should never do something to others that one would regard as an injury to one’s own self.”

Mahābhārata 13.114.8

Or in the teachings of the Buddha:

“Hurt not others in ways that you yourself would find hurtful.”

Udanavarga 5:18

And similarly, Jesus of Nazareth said:

“Do to others what you want them to do to you.”

Matthew 7:12

So, as with values, there are some common themes, but it is also worth reflecting upon the specific principles you hold to. This can be done systematically if you take time to reflect on how you make decisions. This reflective process will start to reveal the underlying principles you use.

If you would like to explore more on identifying and developing principles, then I recommend reading Ray Dalio’s book Principles where you can see how this process can be done on both a personal and organisational level.

Purpose

Similarly, to values and principles, there can be overlapping ideas of purpose. These might be:

• Individual purpose – your own sense of personal purpose
• Professional purpose – the specific purpose we have in a given work role
• Organisational purpose – the mission statement of a team or business your work for

To understand purpose and make it measurable it is advisable to create a clear and concise mission statement. A good purpose statement is a definition of success, within a given context.

For example, my own mission statement is:

 “To serve people by helping them unlock their leadership, in order to support them on their adventure.”

In this case, my personal purpose statement also encompasses my top three values of service, leadership, and adventure (but this does not have to be the case). For example, Oprah Winfrey’s purpose statement is:

“To be a teacher. And to be known for inspiring my students to be more than they thought they could be.”

What I find useful about this (and good purpose statements in general) is they can give a measure of success against different time scales. Both the mission statements above can be used to consider achievement in a day, week, year, or lifetime. These statements also help to analyse whether decisions have worked towards the good and successful outcome of the stated purpose.

Factors that impact good decision-making and ethical choices

Even after identifying our values, principles, and purpose, or those specific to a given ethical problem, there are still factors that can impact making a good choice. Most of these factors relate to cognitive bias, the subconscious rules of thumb we use to help us make quick decisions.

To minimise the negative impacts of cognitive bias it is worth considering the following:

• Education and training. Learn about decision-making and the different types of cognitive bias
• Diversity of thought. Bring different perspectives to a team or decision
• Build a culture that allows challenge. Create a culture around you where people are more likely to challenge or call out bad behaviour and decisions (even if that is just a good friend who will be brutally honest with you)

The three things to help you make good ethical decisions

Therefore, if you want to make ethical decisions you need to first know your values, principles, and purpose. Then, while allowing for cognitive bias, you can then balance these three elements against each other to make your choice.

This does not mean you will immediately come up with an answer. If you are new to exploring values, principles, and purpose then that will likely throw up challenges and questions to work through before you even get back to the ethical problem you are facing!

But don’t despair. The search for good outcomes and truth is a journey, not a single destination. It should inspire personal reflection, critical thinking, and the sort of discourse that Socrates would be proud of. And that quality thinking leads to good actions, and as Martin Luther King said:

“The time is always right, to do what is right.”