Most corporate values statements (e.g., "integrity") are unactionable and don't change internal culture. Effective leaders codify specific, observable behaviors—the "how" of working together. This makes unspoken expectations explicit and creates a clear standard for accountability that a vague value never could.

Prioritize sustainable, long-term growth and value creation over immediate, expedient gains that could damage the business's future. This philosophy guides decisions from product development to strategic planning, ensuring the company builds a lasting competitive advantage instead of chasing fleeting wins.

Instead of pitching the abstract value of 'delight,' connect it to concrete business objectives. By asking a founder, 'Are users proud enough to recommend our product?' the focus shifted from a vague concept to a clear driver of word-of-mouth growth, making it easier to get buy-in.

Founders often mistake their preferences for principles. A true principle is a non-negotiable rule you adhere to regardless of the trade-offs (e.g., 'always do things the right way'). A preference is a desired path you're willing to abandon when circumstances change (e.g., 'prefer not to build a sales team yet'). Clarifying this distinction leads to more consistent and high-integrity decisions.

Values are not just words on a wall; they are an active management system. They should be a filter in the hiring process, a reason for public celebration when embodied, and a non-negotiable standard for performance. A company's true values are defined by the behavior it is willing to tolerate.

Instead of imposing top-down values, Gamma's CEO created a "notebook" of behaviors that team members organically praised in each other. These observed, authentic actions became the foundation of their culture deck, ensuring the values reflected reality.

Setting values on day one often leads to inauthentic principles. A more effective approach is to operate the business, observe which behaviors are genuinely rewarded and cherished, and then name those emergent qualities as your official values, ensuring they reflect reality rather than aspiration.

Instead of vague values, define culture as a concrete set of "if-then" statements that govern reinforcement (e.g., "IF you are on time, THEN you are respected"). This turns an abstract concept into an operational system that can be explicitly taught, managed, and improved across the organization.

Abstract values like "celebrate diversity" are useless for driving behavior. A value is only effective if it's tangible enough to be used in a performance review. Instead, use an observable action like "include all perspectives," which you can coach and evaluate.