At Instacart, we neglected to codify our values for several years.It wasn’t until about ~3 years in that we realized the importance of this exercise.
We were too busy trying to serve customers, figure out a business model, ship product, and hire amazing people to really reflect on values.
When we finally sat down to define our values, it had a huge impact on the company.
I still proudly have my Instacart #EveryMinuteCounts medallion in my home office!
As the business grew, the connection between our team and our values started to wane. We started making small compromises in the name of speed that caused a slow drift apart from the values of the company and the people within the company.
It seemed like every two years, we were re-writing our values to align with the company’s current objectives and self-identity.
The constant change at hyper growth firms can make it hard to anchor on a set of enduring values.
Reflecting on companies that I admire, a common thread emerged: they have a clear sense of what is important to them and perhaps more importantly, who they are not.
When I decided to start a new company, my co-founder and I took a different approach from either of our previous lived experiences. We began the exercise of company building with very transparent conversations regarding our personal values and how those may translate to the values of a company.
We started with ‘what will always be important’.
The Beacon 4 H’s
1) Humility
We acknowledge that the path to getting the right answer involves being wrong along the way. We have strong beliefs that are weakly held, actively seeking new ideas and believing we can learn from anyone at any time.
2) Honesty
We are truth-seeking in our approach to business problems. Business is a repeat game, and we believe that human relationships generate alpha. Trust is earned over a lifetime and lost in an instant, and we strive to build and maintain it consistently.
3) Hunger
We play to win. We hold ourselves to high standards and will never be outworked. We take pride in having a deep sense of responsibility to ourselves, each other, our partners, and our customers. We believe that to whom much is given, much is expected.
4) Horizon
We seek to build a generational software company, understanding that this will take decades. We manage our expectations, and those of our partners, to take advantage of the eighth wonder of the world—compounding growth.
Using Our Values Day-to-Day
Historically, I found it difficult to grasp how to make corporate values actionable day-to-day. However, with Beacon, we are finding it helpful across various dimensions:
Hiring: We spend dedicated time with candidates, explaining our values as we move towards an offer.
Working with Entrepreneurs: We have in-depth conversations about values during our discovery process, ensuring alignment with our partners.
Team Management: We provide real-time feedback referencing our values, helping guide behavior and facilitate difficult conversations.
Picking Capital Partners: Given my recent post on ‘choosing your capital providers,’ I won’t rehash how we used our values to pick our financial partners.
What I’ve Observed Going Wrong With Values Definition
As a practitioner, I’ve noticed it is hard for values to mean anything if:
They are watered down: Values need to resonate deeply with a specific group, even if it means some people opt-out.
They are not aspirational: Like a BHAG (Big Hairy Audacious Goal), values should represent the best version of your company. No company can adhere to its ideal values 100% of the time, but to be timeless, they should allow for striving towards an ideal, even if the end state is unachievable and undefined.
Perhaps most importantly, if any of this resonates with you as a builder, I encourage you to be proud of whatever you define as your company’s values. They will be uniquely yours and not for everyone.
The true test is whether you are comfortable turning down a great partnership, customer, hire, or investor because they don’t align with your defined values.
I don’t know if these values will stay ours forever, but I am proud to share these 4 H’s with anyone who may become involved with Beacon.