Beyond Words: How to Measure and Evaluate Core Values

“Helping people realize their dreams with excellent member service from a dedicated local team backed by a trusted, sound financial institution.”

This is what we at YMC call the "credit union lullaby." Does it sound like your value statement? 

Trust, security, and member service should be a given at any credit union, and these core values do not teach, entertain, or inspire; likewise, the credit union mantra of "people helping people" doesn't separate your credit union from any other financial institutions. Finally, opening a thesaurus and selecting core values isn't very strategic either.

Core values should guide every policy, procedure, and interaction. By rigorously defining, measuring, and integrating these values, you ensure they are more than words – they are the foundation of your organization’s identity and success.

When selecting core values at your credit union, begin with clarity. Break down broad values like communication, integrity, excellence, and authenticity into specific, observable behaviors. This precision allows for the values to be measured and managed. For instance, redefine integrity not just as honesty but as "every decision made in the best interest of our members," making it actionable and concrete.

What's key in selecting core values is that your staff sees and believes that their actions are reflected in purpose. 

According to a 2021 McKinsey & Co. study, 70% of people say their sense of purpose is defined by their work. Employees who feel their purpose is fulfilled at work report 2-5 times higher positive work and life outcomes than those who don't. When your core values connect with purpose, it can lead to increased retention, innovation, employee engagement, well-being, and revenue.

As you seek to develop your core values, ask your team the following questions:

• What behaviors are celebrated and rewarded here?
• What are the characteristics of our best-performing teams?
• What values are essential to our long-term success?
• When we make decisions, what criteria do we consistently consider?
• What values would we not compromise, even if it provided a substantial financial benefit?
• What do we want to be remembered for?
• If our credit union ceased to exist tomorrow, what would the world lose?
• What common traits do we share with our most satisfied members?
• What behaviors or practices would we never see here, and why?

These questions are designed for deep reflection and discussion. This is not an exercise to find a keyword per bullet point. It should steer you toward identifying what's most important at your credit union. 

Once you have identified your core values, engaging in regular discussions during meetings at all levels helps reinforce their importance and assess cultural integration. These includes board meetings, leadership meetings and staff meetings. Do not misunderstand this as instructions to "recite" core values at every meeting. Instead, they are guides. To put it another way, if the actions or discussion at your credit union do not align with the core values, ask yourself: Are we focused on the right things?

To gauge how well core values are being embraced and enacted, you can employ both qualitative and quantitative measurement tools, such as:

• Surveys and Feedback Forms: Regularly distributed to employees and members, these tools can assess perceptions of how well the credit union lives up to its values.
• Performance Metrics: Adapt performance reviews to include metrics specific to core values behaviors. For example, incorporate assessments of communication quality, decision-making processes, and customer feedback on authenticity and integrity.
• 360-Degree Feedback: This comprehensive feedback mechanism involves collecting insights from an employee's subordinates, colleagues, and supervisors, which is particularly effective in assessing leadership alignment with core values.

By monitoring changes over time, you can identify trends that signify shifts in cultural alignment. Credit union leaders must lead by example through consistently demonstrating core values in their actions and decision-making processes. You may also implement programs that recognize and reward employees for exemplary displays of core values.

For credit unions, core values are more than a set of ethical guidelines: They are a framework for day-to-day operations and long-term strategic planning. By taking a structured approach to defining, measuring, and reinforcing these values, credit unions can ensure they permeate every aspect of the organization, guiding decisions and interactions that enhance overall performance and customer satisfaction.

Dig Deeper into Core Values at Your Credit Union
Watch: Take a peek at this short video, Unlocking the Power of Core Values at Your Credit Union.