FOR INVESTORS
Do your portfolio companies have core values?
One of the most common risks of founding teams is a lack of shared direction and focus. At Blackhawke, we often find when we work with startups that employees may not feel empowered or qualified to make decisions, they are unsure where their time should be spent, they hear conflicting messages from leaders, and feel like they are spinning their wheels without actually accomplishing anything. Then, because the employees are all working on something without being on the same page, the startup underperforms.
A lack of a shared mental model — a common, agreed-upon understanding of a situation or system among team members — can derail or misdirect your portfolio companies. While creating a vision statement can help the team build a shared mental model, it’s not enough. A vision statement does not provide information about how employees should behave, how to make decisions, or how to work with others. Core values can do exactly that.
Core values provide a foundation and boundaries for decision-making, behavior, and actions. At Blackhawke (soon to be Symeta), we have 3 core values and example behaviors of how to “live” out our values. Everyone on our team knows, embraces, and uses them to guide decision-making and their behavior.
Epic Curiosity
We value long-term, sustainable change. Which means, we are always seeking new knowledge, perpetually innovating, manifesting atypical ideas, and questioning the “truth.” The world never stops changing, nor do we. We are determined to constantly evolve and adapt.
Behaviors to “live” epic curiosity:
- Never Stop Learning
- Persistently Challenge the Status Quo
- Launch the future
Unapologetic Authenticity
Authenticity and self-awareness are indispensable. We value introspection — individually and collectively — that leads to deep understanding and a focus on being true to the self and true to the situation. By confronting reality and communicating candidly, we are able to design solutions that genuinely fit our customer’s needs.
Behaviors to “live” unapologetic authenticity :
- Just Be You
- Collaborate with Alignment and Cohesion
- Communicate Candidly
Scientific Artistry
Our members are intellectual over-achievers and visionary critical thinkers. We value the scientific method and the knowledge it helps us unearth. We let data light our path but recognizing there is still a lot we don’t know. We use what we know to artistically create evidence-based solutions while always leaving room for new discovery.
Behaviors to “live” Scientific Artistry:
- Rely on Science, Data, and Logic
- Create Extraordinary Value
How Core Values Will Improve Startup Performance
Transparency builds trust. It’s not just showing others the data. It’s revealing the criteria that we use to make our decisions and the criteria by which we judge the decision-making process. ~ Ray Dalio
Provides a Framework for Decision-Making: As a founder myself, when faced with strategic decisions, I use Blackhawke’s core values to make choices that align with the company’s mission and values. When issues or challenges arise, your founders can use their core values to approach them in a systematic way that helps them move toward the company’s vision.
Strategic Alignment: Core values help align the actions and behaviors of all employees with the company’s mission and vision. Startups that lack a clear set of core valuesmay struggle to maintain a sense of purpose, direction, and ethics as they grow and evolve, ultimately leading to underperformance and making a strong exit less likely.
Clarifies Expectations: Core values convey a sense of responsibility and commitment to stakeholders (e.g., investors, customers, partners). When conflicts arise within the founding team, they can act as a reference point for resolving disputes and disagreements. They provide an objective basis for open discussions, enabling employees to express their viewpoints and concerns without fear of reprisal.
Creates Cultural Consistency: The values set the tone for how employees interact (internally and externally), how they approach their work, and the type of workplace environment that is fostered. A positive, values-aligned culture helps attract and retain top talent.
Strengthens Brand and Reputation: Core values influence how the company is perceived by customers, investors, and the broader community. A startup that consistently upholds its values can build trust and a positive reputation, strengthening relationships with their customers.
Conclusion
Core values are the foundation for building a strong culture and cohesive teams, both of which help to accelerate performance. If you want your portfolio companies to perform at their best, make sure they clearly articulate what “best” means for them by building a shared understanding of values. Lastly, core values can also help you make decisions about whether the startup is a good fit and aligns with your values as an investor.
“If you want to build a ship, don’t drum up people to collect wood and don’t assign them tasks and work, but rather teach them to long for the endless immensity of the sea. ~Antoine de Saint-Exupery”
Share your core values with us and how you make them a reality in the comment section.
Have Questions or Need Advice? At Blackhawke (soon to be Symeta), we have several I-O psychologists with expertise in entrepreneurship performance and performance management. Feel free to schedule a 15-minute consultation; we’d be happy to provide some advice or answer questions, no strings attached!
About Blackhawke Behavior Science
Want to learn more about building a strong entrepreneurial team and healthy organizational culture? Visit Blackhawke’s Medium publication, From I-O to IPO, or www.blackhawke.io and get social with us on Linkedin, Instagram, or Twitter!
