Core Values, Intolerables and a Public Hanging

Core Values, Intolerables and a Public Hanging

I’ve been an executive coach for almost 15 years and one of the things that surprises me most about working with the leaders of small and midsized businesses is how reluctant many of them are to focus on the soft stuff. I’m referring to mission, vision and values, and the Stephen Covey quote proclaiming that, “The soft stuff is the hard stuff.”

When it’s time to stand in front of their workers to explain where they want to lead the company, why the company exists and what they’ve determined are the firm’s core values, too many leaders flinch.

In early March, I took my CEO group to a two-day workshop at Zingerman’s in Ann Arbor, Mich., to learn how to create a vision for each of their businesses. Inc. Magazine called Zingerman’s “the coolest small company in America.” They’re famous for their entrepreneurial spirit, open book management, and creating an actionable vision of the future for each of their businesses. Their training business was started in 1994; it is one of nine enterprises within the community of businesses that make up this $60 million company.

It’s difficult to create a powerful envisioned future without also discussing mission, core values and culture.

The definition of the term culture that I’m fond of is, “The way we do things around here.” Culture and core values are closely linked. Each of us has a short list of 3 to 5 core values. They’re inside us and they must be discovered. Discovering takes time and reflection — you won’t get there in an hour. And just because someone else’s core values sound cool, you can’t borrow them and call them your own.

Once you’re clear on your core values, you can determine your intolerables.

These are the things you absolutely won’t abide in your business; they are the non-negotiables. Knowing them isn’t enough. You must continually communicate them and when someone violates one of your intolerables, you can’t ignore the breach.

I’ve worked with a guy who runs a fast-growing business. He’s a highly effective leader with a clear set of values and a short list of intolerables that he continually communicates to his employees.

Over a weekend, three employees violated one of those intolerables. Ten minutes after they started work the following Monday, they were escorted out of the building and terminated. Once they were gone, he called his entire work crew together and explained why the three had been fired. A business school professor I know calls this a “public hanging” and says it’s the best way to reinforce your core values and the behaviors you won’t tolerate.

It’s seldom easy to confront and terminate an employee, even when they clearly and deliberately violate one of your intolerables. Yet you must; failure to do so will leave you with an emotional hangover and lost respect. Author and leadership guru Lee Thayer famously said, “You are what you tolerate.” Bad behavior won’t change if you ignore and tolerate it.

That’s the value of a public hanging.

VALUES