Values-First Partner Alignment
Align values and ownership before discussing the economics of a partnership
- Difficulty
- Moderate
- Time to result
- ~weeks to results
- Steps
- 4
- Confidence
- 99%
When Julie Yarbrough formed Empire with Leo Whitten and Anthony Lombardo, she insisted that their first substantive conversation address values rather than financials or credit. Her earlier company had taught her the cost of partnering with someone who did not share her value set. The prospective partners therefore met over lunch and established the sequence God, Family, Team, money as the value order that worked for them. Only after establishing who they were together did they align on company roles, prevent those roles from overflowing, and consider what kind of person they wanted to invite into the organisation. The mechanism treats partnership like a long-term commitment: shared values govern trade-offs, role boundaries govern execution, and the people standard carries the values into company growth.
Origin
Yarbrough developed the method after an earlier company partnership with someone who did not share her values. She applied the lesson when forming Empire with Whitten and Lombardo five years before the interview.
Core principles
- 01A business partnership requires shared values
- 02Values come before money in the formation conversation
- 03Defined roles prevent ownership from overflowing
- 04The people invited into the company should fit its intended character
How to run it
- 1
Open with values
Make values the first formation discussion rather than starting with money, financials, or credit. Ask each prospective partner what must guide the company.
Pro tip Hold a dedicated values conversation before introducing deal mechanics.
Watch out Economic enthusiasm can hide value conflicts that later surface under pressure.
- 2
Agree the value order
Turn broad preferences into a shared ordering that can guide trade-offs. Confirm that every partner can operate under it.
Pro tip Use language the partners can repeat when a difficult decision arises.
Watch out A list that means different things to each partner is not genuine alignment.
- 3
Assign distinct roles
Decide who each partner will be inside the company and where each role begins and ends. Use those boundaries to prevent duplicated authority and overflow.
Pro tip Describe decision ownership, not only job titles.
Watch out Shared values do not compensate for unclear operating responsibility.
- 4
Define who belongs
Agree on the type of individual the company should invite. Apply the shared values to hiring and affiliation decisions as the organisation grows.
Pro tip Evaluate character and commitment alongside production numbers.
Watch out Inviting people who contradict the values weakens the original partner alignment.
In the wild
Before discussing money, Yarbrough, Whitten, and Lombardo met for lunch and talked about values. They settled on God, Family, Team, money, then aligned their roles and the type of person they wanted to invite into the company.
→ The founders created a shared basis for company decisions, responsibilities, and membership.
Common mistakes
Leading with the economics
Discussing money first can move a partnership forward before the founders know whether their underlying priorities are compatible.
Leaving roles porous
Without agreed ownership boundaries, partners can overflow into one another's responsibilities.
Recruiting against the values
Company growth becomes inconsistent when the people invited in are assessed only by production rather than fit and commitment.
Is it for you?
Best for
It is best for prospective co-founders forming a values-led company with shared operational responsibility.
Not ideal for
It is not ideal when partners are unwilling to make values explicit or treat role boundaries as real commitments.
From the transcript
“before we talk about money or anything let's talk about values”
“if you're going to have Partners you're marrying them in business so please share the same value set”
“then we aligned on who we were in the company and what roles we were going to take and so that they didn't overflow and…”
From the episode
Building an Empire with Julie Yarbrough