Monday, December 5, 2022


Value is multi-faceted and it’s great to see how business value is in the eye of the beholder.

Every organization has a purpose, as well as a set of values to reveal its purpose. The value of the firm goes beyond economic value or shareholder value, to include other forms of value such as societal value, employee/customer value, supplier/alliance partner value, managerial value, etc. 

Values Management requires a close examination of all of the organization's vision, mission, purposes, strategy, culture, and leadership. With a clear business value stream view, all parties can agree on the common value proposition. It’s also important to set proper guidance coupled with deep understanding, both based on clear visibility to enhance multidimensional value proposition.

Value-based management: In order to run a value added business with pragmatic advancement, business management needs to properly understand all elements of value that are translated to the organization, and how all the pieces and parts of the organization are ultimately impacted by each new business initiative. If there is value conflict, understand the cause and effect, set certain criteria that everyone agrees with, you can become more value-added, progress-oriented collectively.

In order to make objective value assessment, evaluate each of the variables from the perspective of the defined value -the value that was assumed when the business initiative was prioritized; current value - the value that considers the current scenario with the current costs; projected value -the value considering a conservative scenario according to what we expect in the future. The comparisons help to review progress, deviations, and make decisions in building long term business advantage.

Values, purpose, and principles are part of corporate ideology/philosophy:
The variety of perspectives opens our mind, and harnesses the values that each of us can bring to the table. Successful business initiatives are about creating really good value chains, getting the right people in the right positions for solving the right problems. Not all business value is directly related to ROI, at least not in the near term. Purpose, values and principles are part of corporate ideology or philosophy that define business value, shape a unique culture, and a strong corporate brand.

Value plays a bigger role in determining which task needs to be addressed first by setting the right priority, or creating a business justification case. The value chain management is the flow of activities, which include what managers, employees and applications do. The whole value chain needs to be aligned, engaged, contributing by sharing the value so stakeholders get their fair share; the value gets measured objectively and makes continuous adjustments.

Value differentiation
: The critical dimension of true “digital strategy” is about disrupting the conventional ways of creating value. Good strategic planning helps organizations extract the maximum value from their organizational capabilities portfolio, drive strategic alignment and optimization. Unused or under -utilized applications that consume a disproportionate amount of resources when compared to their value, need to be addressed. It’s always important for acquiring the ability to develop new products or services, with the aim of optimizing the business value that is generated.

It’s great to have a strategy to define business value when you have competing priorities. To keep improving performance and exceed business expectations, leaders should listen to a wide range of opinions, work across the business functions to plug revenue leakages, and increase multifaceted value generation. Value should be estimated or demonstrated through the rate of productivity increases, the rate of business development, the rate of market share gains, the rate of customer approval and satisfaction gains, or the rate of sales gains, etc.

Value is multi-faceted and it’s great to see how business value is in the eye of the beholder. Business values should be identified by the organization, be quantified by management and worked into the architecture of the system.The value-based management enhances guidance, improves business effectiveness, unlock performance, achieves collective advantage and multi-layer ROIs.


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