The Power of Values Alignment in Early-Stage Startups

“Values are like fingerprints. Nobody’s are the same, but you leave ’em all over everything you do.” — Elvis Presley

If Sisyphus had a co-founder

In a startup, trust and mutual understanding among stakeholders are essential. The early days can feel like the honeymoon phase of a relationship — energy is high, excitement is in the air, and everyone is optimistic about the future. But just like any relationship, this initial excitement will eventually level out. It’s crucial to establish a solid foundation early on that you can rely upon when things get difficult. And they generally do get difficult (after all, if startups were easy, everybody would have one) and that is not the time to discover a misalignment of values among the founders.

Setting Your Foundation

• Create a Values Charter: List and prioritize your core values. This is a living document that should be reviewed regularly and referenced during key decisions.
• Contextualize Your Values: Map out key moments in your business where decisions can advance the company’s mission. Explain how you expect to live your values through specific actions in those key moments.
• Integrate Values into Agreements: Incorporate your Values Charter into shareholder agreements, employment contracts, compensation plans, and KPIs to maintain alignment as your team grows.
• Prepare for Sacrifices: Understand that living your values often requires sacrifices. The most important time to have a clear understanding of shared values is when you can’t get everything you want, and must make a choice.
• Develop Cultural Practices That Reinforce Values: Establish practices like a “Values in Action” spotlight during project retrospectives, or add a “Values Alignment Hero Award” to your peer-recognition program to keep the principles visible and your team engaged.

Leadership plays a critical role in upholding the Values Charter, ensuring that when the honeymoon period fades, the team remains cohesive and committed, guided by shared principles and a clear understanding of priorities.

In the coming weeks, I’ll be posting more articles with useful tools and techniques that I hope you will find useful in establishing a durable foundation of shared values for your startup. If you have any questions, suggestions, comments, or criticism, please reach out or add a comment!

— Michael