EMPLOYEE MAGAZINE
How Value Creation Lead to Business Success
KEBALEBILE MPHO MOOKETSI
Value Creation is defined as giving something valuable to receive something else more valuable . This definition is broad and captures both costs and benefits . Further , it applies to owners , customers , and employees , as I will describe later . Value Creation Process It is important that before being able to measure , track and communicate on value creation , that one understand value creation and enable a value creating business model . To achieve this level most successful businesses , use a management process of defining , creating , delivering and sustaining that we will discuss more about in this article .
DEFINE : Defining value involves identifying the core principles , and behaviors that guide and describe an organization ’ s culture . The key being its contribution to benchmarking for future decision-making and strategic planning . This lead to unity between organization ’ s employees , and leaders with a set of enduring , passionately-held beliefs within an organization . Though defining value is important to the organization ’ s identity it also sets the frame of reference for the business quality & its contribution to the society and economy at large . Moreover , that involves the establishing and prioritizing stakeholders , understanding how they are relevant to the organization ’ s purpose and strategy , and assessing the equivalence to balance their corresponding needs and prospects .
CREATE : The value creation process is at the heart of integrated thinking and value creation . Here are the 5 Steps usually used :
The concept of creating value is more critical to driving the business growth . To create long-term value , organizations need to put in place the infrastructure , capability and relationships ( tangible and intangible assets ) that enable them to meet the needs of their customers and stakeholders .
DELIVERY : Value Delivery involves everything necessary to ensure the satisfaction of the customers , employees and the stakeholders . The organization ’ s culture and its strategy to excel is measured through its intensity to deliver ; best service , products and economic impact . This is the leading technique in ensuring the brand recognition and demand . In this 4th Industrial Revolution it is vital that every organization leaders , stakeholders and the working sector recognize the rapid change of business models .