One of the really cool things about putting together an event for growth-oriented entrepreneurs, is that we get to invite some amazingly talented people to speak.

A couple of weeks ago, we flew out Ann Rhoades, author of Built on Values to speak to many of our Elite Mastermind and Elite Momentum members about the importance of identifying the observable behaviors that make up each of your company’s Values.

While I’ve known and taught the importance of behaviors for years, it was wonderful to have one of the best practitioners on the planet share some insights.  Here are the (mostly) raw notes I took from her talk:

Values are only words on the wall unless and until you define the behaviors under the Values

Book mention: Purpose Meets Execution; Louis Efron, former Tesla leader

We write rules for one person.  We’ve got to stop doing that. You don’t need a 285 page employee handbook.  Values with well-defined behaviors should eliminate most of the need for a handbook or a set of “policies”.

Southwest was always 10% below market in compensation but had the lowest turnover.

People want to work for/with an organization that has similar Values.

Linde and I went up to New York to work with David Neeleman to build JetBlue on Values

If you’re going to have a purpose, use it.

• “Bringing Humanity back to air travel.”
• At JetBlue we ran every decision against our Purpose.

Consciously design your culture.  If you don’t pay attention to it, it will get out of hand.

At Southwest and at JetBlue, we included a review of culture and people practices as part of every board meeting.

5 Pieces to the Built on Values Model

1. Values Blueprint
2. Hiring “A” Players
3. Continuous Discipline (C!)
4. Customer Branding
5. Accountability and Rewards

Leaders → Values → Behaviors → Culture → Performance

Values Committee; Culture Committee

• We want team members to be part of keeping the culture alive and well
• Example of JetBlue CEO sending a message every Sunday night for 19+ years (and running) to all employees that included stories that highlight the Values

Get your C players hired away by the competition

How to lead with Values where there are Virtual teams:

• Values scroll across the screen
• Personal notes from leaders
• Values on their ID badges
• Visit once per quarter to the office
• Letter to the home that can re-enroll the family as well
  • Herb Kelleher sends personal notes in the mail that employees keep in their pocket for years and years

Keep doing what you are doing, building these great companies.