Guiding Your Business to Success: The Importance of Establishing Core Values with Jennifer Smith

Jason Phillips: [00:00:00] Welcome to the Contractor Freedom Podcast. I'm your host, Jason Phillips. This show exists to help small business owners like you escape tyranny of Contractor Prison and enter the bliss of Contractor Freedom so that you can have the time, money, and Freedom to live your life with purpose beyond your business.

As the owner of a multi million dollar home improvement company and certified human behavior consultant, I'll be sharing with you skills for life, love, leadership, and business. I'll also be connecting you with experts that can help you. Help you scale your business and your life. So if you want to build the business and the life of your dreams, then you are in the right place.

Let's go. 

Jason Phillips: Hey friends, today we are gonna be talking about core values and what they are, what they're not, and why they're important, how to use 'em.

And I think you're gonna, I think you're gonna find some value in this. I have with me today, Ms. Jennifer Smith. Who is one of my senior leaders at my company [00:01:00] Tell all our friends about you. Who was Jennifer Smith? 

Jennifer Smith: Okay. I'm the HR manager here at Phillips. I also manage the fleet, do a little writing for marketing, which is a love of mine.

I was actually originally hired here as your communications person, and I definitely still do a lot of communicating and I do a few tasks here and there. For you to help you out, and that's fun for me. I'm also a human behavior consultant and love that because I love people, I love personalities, and I love helping people find their fit.

Jason Phillips: That's pretty amazing. You said you do a few tasks for me here and there. That's an understatement. Actually. I don't know what I would do without you. I'll talk so much about leadership and culture. I get a lot of questions. On core values, and I've even recently been in contact with a number of small business owners, painting contractors in particular that are trying to [00:02:00] clear up some or rewrite, or revise or draft from scratch some core values.

So I thought we might just share the journey. You and I have done a lot of work. Yes. On that very subject. Yeah. It's important to us here. So there's things we value. Right, but they're not necessarily always core values. Mm-hmm. And then there's let, can we just talk about the types of values? What's your take on that?

Jennifer Smith: Well, I think there are some values that are more core than others, and I would call those foundational values such as honesty. Integrity. Those were pay to play values here at Phillips. If you're not honest, and if you're not a person of integrity where we know that your word is your bond, that what you say, we can count on being true, then we don't even need to start having a conversation with one another because we are not gonna fit.

Okay? So those are foundational pay to play values. Then there are these other core [00:03:00] values that are unique. To us as a company that set us apart, that kind of tell other people out in the world. Who is Phillips Home improvements And those are the values that we call core values here that we hire on, promote, on, have conversations around and that that make us unique at Phillips.

And I'm sure we'll talk about more of those, but one of those values is people that we really value people. In other words, Vendors and employees. And all people. All people. Absolutely all people. And yeah, that's one of our big four. 

Jason Phillips: You know, that's really good. Our company Core values, friends at my company, this is our team, right?

Our faith people. Teamwork and the pursuit of excellence. So those are [00:04:00] also my personal core values and my, this organization, my company was started on the premise that . People deserve more because I saw so many, I'm gonna say injustices in the home improvement industry, painting in particular, people cutting corners, not, not fulfilling their word, leaving things undone.

Cheating customers and cheating vendors, mistreating the immigrant workers in the field, and even the employees and such. One of my values is people, because I get my values from the Bible. And my ultimate leader example is Jesus servant leader, right? And the Bible teaches me and teaches us that God gave his only son for people that didn't even love him.

And to me, that just shows such an amazing value for people. And if I'm going to reflect him, I need to value people as well. So that's one of my core values. And then I saw homeowners and people connected with the home improvement industry that were being [00:05:00] mistreated. And I started the company like

People deserve more than this. I can do better than this. So that's how our core values came to be, right out of my own core values. Now, when you start talking about your core values, think through that process, right? If let's just say that you're working on, Hey, I want to establish core values for my company, or I've got some core values, but they're nebulous or nobody knows them.

There's so many things, but l Jennifer, why don't we talk for a second on what are core values, not.

Jennifer Smith: They're okay. First of all, they are not a hope, a dream, a wish. They're not aspirational. They are solid values that can be seen consistently throughout your team. they are what you would be characterized by.

Rather than something that you hope others would see you as. And they really tru are truly are [00:06:00] at your core, who you are. And we want everyone at Phillips to have those same core 

values. 

Jason Phillips: So what we're saying here is that your core values are things that already exist Absolutely. In your life and on your team.

Not things that you wish existed Exactly. Or even things that you're working towards. Making a reality. They're already a reality. They're already a reality looking at our companies and our teams, that can be very disturbing. If we have a, if we have a track record of hiring and acting, behaving as a company without guiding principles, we could be in a mess.

Have you ever felt like you're in a mess? Hey, give us a thumbs up if you're watching. By the way, I would love to hear you throw some comments in there. If you have any questions, I'll try to grab your questions too, and we'll try to answer your questions. So core values, you mentioned that they guide our decisions.

One of the things I feel like also along those guiding decisions, it's [00:07:00] when you don't know exactly what to do, you can back up to the very most basic thing of core values and all of a sudden, A lot of tough questions. The answer becomes obvious, not easy, but obvious. Yes, there's been a number of times through the years where we've made some tough decisions.

For instance, we believe that people in relationships are more valuable than money. There's times rather than run to save, to, to act in a way to prevent losses on a project. A lot of companies would tuck tail and run when things go bad, when a customer's unhappy and just to protect their losses and burn a relationship and burn a person.

And in reality, they're not just burning that other person, they're burning their own integrity. Yes, core values really help us make, help me. I'm telling you, ma, help me make a, uh, make some very tough decisions. So Greg says, oh yeah. Hey Greg. Greg o [00:08:00] O'Donnell. Thanks for joining us by the way. Thanks for joining us.

They help guide tough decisions and they help make it easy to make the same decision or similar decisions consistently. Yes, they're really good for that. What about they, in addition to, how do you feel, Jennifer, that the core values help direct just the general direction of a company? 

Oh, 

Jennifer Smith: wow. If we are truly, for example, valuing people, Then all of the decisions moving forward with our company are gonna move in that direction.

They are gonna be decisions that would honor people. Um, and so if our core value is teamwork, then moving forward when we're making a decision, we're gonna ask ourselves the question, are we acting as a team? As we're making this decision, are we moving together in tandem with one another as a team?

Consistency with our core values [00:09:00] means that we're gonna act the way that we say we are. We're gonna act in that direction, and so we're gonna make decisions in that direction 

Jason Phillips: so we can hold ourselves as a company and as individuals, as a team accountable, absolutely. To our core values. Absolutely. I love that, Jennifer.

That's really good. No, they say we, we say a lot of people say, That culture is like the personality of your company. Yes, but core values are the heart and soul. Heart and soul of your company. So think about that when you're, maybe, I wanna say younger in business. It's not really about how long you've been in business, but maybe it's about the type of problems and things you're dealing with every day.

You might not see core values as something that's real important. And it's just like things like leadership and management and systems. All of a sudden you have problems later and you realized, [00:10:00] wow, I should have really lined this out. Years and years ago, and I just wanna encourage you guys and gals, if you don't have a solid list of core values that I'm gonna, I wanna say define who you are, but no, they don't really define who direction maybe that they, it's who you are and they're, it's identifying who you already are.

If you don't have a, a simple list of core values, then this is a great time to get started. And guess what? Here's the other thing. It doesn't have to be perfect. And it can evolve over time. Hey, by the way, Zach, Zach Baker, man, and we got Noah, man. Hey guys. Noah says hello. Thanks for joining in. Thank you for joining in.

When you're getting started with core values, let's give him some tips on how to get started with core values, because at the end of the day, the end result is. They don't just need to be on a wall somewhere, right? Or in a drawer. Okay. They need to really be act actionable [00:11:00] and at every level of your company, a lot of times it's easy to get the leadership or the managers on the same page.

How about your frontline workers? Yes. So I would suggest that when you're getting started with core values, the first thing I would say is take some time for self-reflection. Just who am I? What's important to me? What is important to me? And start defining those things you are like, mine are faith people, teamwork, and the pursuit of excellence.

And yours. Yours aren't gonna be exactly the same as mine, most likely, and whatever those are. And then say, is that who my company is? Is that who I want my company to be? Maybe it's not who your company is currently, and you can write that as a value that you aspire to, but the first thing would just, Hey, this is who I am.

And then get your team together, your managers, you might even want to get your whole team together and I. Say, Hey guys, here's a list of you can make 10 or 20 values. Hey, here's a list of some core [00:12:00] values that I want us to line these out. And you tell them why they're important, how you're gonna use them.

They're gonna guide and direct your decisions, your behavior as a company, and, and then you're gonna start using them in different ways throughout the company, which I'm gonna have Jennifer share about in just a minute. But just get 'em together and just write 'em down. Throw 'em all down on a whiteboard or a sheet of paper.

And everything, the good ones, the bad ones, whatever, and then start talking about 'em and narrow 'em down with your company. Now, I'm gonna recommend that you narrow them down if you can, to three. Yes, because we have four. We tried to go to three, but we landed on four because if you have a long list of core values, they're not gonna be easy to learn and they're not gonna be very memorable.

So they need to be. They need to be clear and concise, not clever. So remember, I like to, I generally like to make things clever. I like these little clever terms and names for things, [00:13:00] but clarity will always be clever. So make sure your core values are clear and easy to understand. So then when you write 'em down, one of the things that we've done here, Cool is we actually wrote a description of what each one is to us because someone else's interpretation of valuing people could be different than mine.

So we've written these down for our team. So don't just say, these are my core values or our core values. Write a description on what that means to your team. Yes, that's the way I would start. And you have to communicate it. You have to lead with it. You have to live it. And if you violate it, You need to apologize for it, and you need to make it right.

Yes. By the way, if you're interested, we have, I'll send you a link and you can download basically some tips and getting started and a sample list of core values. I'll throw the, I'll throw the link in here in a few minutes and if you guys want, you can pop [00:14:00] in and I'll email it to you. So Jennifer, one of the, one of the places that, that we use core values.

Is in the HR process. Definitely. And HR process is big. But let's just talk about, start us off. How would you use core values when it comes to hiring? 

Jennifer Smith: That's a great question. So I would say that core values guide, I. Everything in the HR process, really everything. But yes, we use them in hiring. I have a list of our core values, and as I am visiting with a candidate, Jason, I will ask questions that really lead us to whether or not they are exhibiting those core values already.

In their own lives. And that helps me to know would they fit with our team? Would they be, would they mesh with our team? Because what we have found out is that when your core values are truly [00:15:00] solidified in your company, and they're not just aspirational, if someone comes in that . Does not exhibit those core values.

They're not gonna mesh with your team. They're gonna either violate your core values or they'll be outsiders because they don't mesh with your core values and we don't want anyone to be in that position. Right, absolutely. So, We definitely are checking the box on each of those core values as we have a conversation with a new candidate.

So that's the first place. Then once they get through that point, if they become a team member, then when we have one-to-ones, we ask questions that go back to those core values. You know what? What you've told us is that, People need to hear something at least seven times before they really know it and understand it.

And so at every quarterly meeting we talk about our core values. Every time we have a one-to-one, we [00:16:00] discuss our core values. When we do promotions, Jason, we look at how closely someone on our team is really adhering to and living out boldly those core values. 

Jason Phillips: And that's a great point Jennifer, and you made me think of something I also think is very important in selling.

We say that facts tell and stories sell. Yes. That stories are memorable. So what would be great is when you have each of your core values, if you could come up with. A real story of how you've had maybe an ethical dilemma in your company and you had to adhere to your core value and how that actually played out in reality in your company.

I'm gonna give you a real example from we value people. What is not one of our core values is profit right now is money and profit a very big important thing in business. Of course it is definitely right, but we value people. [00:17:00] Over profits. There was a number of years ago we put a roof on for lady and she called us a few months later and our guys, I don't know how this got through the whole process.

Our guys put the roof on wrong. And what it was is there's a pattern to how the shingles need to lay. So it looks right. It's just, it was all about color. Not necessarily the way they nailed it or anything, but they put the shingles on in the wrong order. Mm-hmm. So it, the pattern didn't look right. So I could have said protected profit.

Right. Could have protected profit. And just said, sorry, and let her be mad at me. But what we did instead is we ripped every shingle off her whole roof. And, and re and replace the whole roof. And friends, I'll tell you what, that's a lot more expensive than throwing a fresh coat of paint over an existing coat of paint.

Yes. But that's an example of ours where we held fast to a core value. Yes. So when you draft your core values, I wanna [00:18:00] encourage you, I wanna encourage you to do the same. Come up with some stories and you may not have a story, but. As time goes on, you will get a story Yeah. Where you've had to adhere and hold fast to one of your core values.

Okay. What I heard you say a minute ago, Jennifer, is you're, you've, you're mentally checking, maybe even not mentally, maybe on paper, checking these core values off as you're interviewing someone. I am, and let's just say when we're amateurs in the HR process, we're thinking, let's just say I'm hiring a painter.

What type of spray tip would you use? Do you know how to roll this? Can this and that. We're asking technical skills based questions most of the time. Yes, and which is great, but if we don't uncover who they are as a person. Then, well, I love the way you said it, Jennifer. You said they might be an outsider and if they're an outsider in your company, eventually it's gonna be a, A failed relationship or failed right.

Employment. That's right. Mm-hmm. Or they may just be completely counter to your culture mm-hmm. As well. Mm-hmm. And that's po That's a powerful thought. And I can just, [00:19:00] all these visions in my mind are going through situations and years past where I. Hired the wrong person, right? Not, I didn't say a bad person.

No. A wrong person. There's a difference. Yes. And when you start thinking about their values, of course we use personality assessments as well. You guys know that we're big believers in personality assessments, and those don't necessarily uncover core values of people. But there's other things that we're not just looking for someone's skillset.

And make sure they have a car to get to work. That's not all we're looking for. Hey, we've got Oscar and Lauren are on with us. Hey guys. Thanks for the shout out. So glad you joined us today. Hiring. Yes, you've got it there. That's key. Thumbs up if you're using, currently using I uncovering core values in your hiring process and maybe gimme a question mark if you're not currently doing it.

Okay. Let us know. I'd love to know if you're using core values in your hiring process. 

Jason: Hey contractors, are you ready to go [00:20:00] deeper or rather higher? Are you ready to up your leadership game up your people skills up your systems so that you can get more Time, Money, and Freedom from your business. That way you can live your life with purpose beyond just running your business. . Escape contractor prison and inter contractor freedom. I want to invite you to register spaces limited for the upcoming. Contractor Freedom Summit right here held in Dallas, Texas. October 26th, 27th and 28th. Just go to Contractor...