SlideShare une entreprise Scribd logo
1  sur  3
Télécharger pour lire hors ligne
Transforming companies through Value Creation not Value Destruction: The
Balancing Act
Understandably, no one will want to change unless he sees a value in the change. And the Value has to
be tangible and worthwhile.
Value Creation is obviously a good idea for companies. Sometimes, evangelists like me forget that for
most people the current situation is comfortable (they derive value from comfort). Many have bosses or
Boards or company owners that demand profitability albeit short term. And if they do not deliver they run
the risk of being fired (a value destruction situation for them). So there are many reasons for following the
road well-travelled. My friend Jim Carras said to me:
“You seem to make a big point of stakeholder value not being a good objective for companies and I fully
understand your concept. I believe you will need to accentuate the positive and not be too strong in
changing what others believe to be important. I know it has a shock value for people to hear that
shareholders should not be the vision but rather customers. It makes for good press. My first boss was
Phil Crosby (ITT) and I can still hear him today preaching about customer satisfaction. You should take
caution in how you sell the idea.”
Talk about putting me in my place, Jim! But Jim is absolutely right, and if companies do even bits and
pieces of value creation like some innovation, like some social work, like some customer value creation.
They will be ahead of the game. The CEO has a balancing act on being accepted by the customers and
by the investors!
So, maybe we should start with what not to do. Avoid destroying Value. Keep looking over your
shoulder and keep ahead of competition. Avoid becoming complacent, and continue to add value to your
employees, customers and partners.
It is easy to be destroying value even when you are creating profits. You can be running your company
into the ground, by not renewing assets.
For example, the 16 oz. plastishield glass bottle, selling 10 billion units for soft drinks and suddenly
disappeared. You could like Enron destroy value for millions of shareholders. You could be like
Blockbusters and Borders (my favourite bookstore), like Blackberry, letting go. Ambassador and Fiat
India, RCA, Paine Webber, Drexel Burnham Lambert Beatrice foods, General Foods, Eastern Airlines,
TWA and my old favourite Pan Am, Burger Chef, Compaq, Arthur Andersen, Standard Oil, American
Motors etc. are examples that were successful but eventually died. Complacency, irrelevance, not
reading the signs, destroying value to some stakeholders
And don’t ignore countries that ruled the world or tried to, the British Empire, the French territories, the
German war losses, Japan’s downhill ride. Ask what caused this?
So what do we learn? Nothing is forever; you can’t take the future for
Failure and success do not happen overnight. More often we fail to see the signs of failure.
Failure does not mean extinction; you can bounce back by adding value.
Never ignore anything that is negative, like customer complaints or a poor response to a product.

Value Creation By Customer Value Foundation

granted.
Add Customer Value, first by measuring it an understanding why customers but and by adding value. Karl
Slym, President of Tata Motors got 357 ideas just by talking to TCS employees, many of whom were his
customers. So innovation is what you must do and it adds value. And talking of TCS, they were named
among the most innovative companies, the most green company, the best CEO of the year, best mobile
learning program etc…all indicators of value creation.
On the other hand, Stock Guru wrote:
-In the name of Power (a power company) one man made a sucker of the entire Indian population. A case
study for future generations. Collected record amount of money from the public & the stock has become
worthless. Marketing professionals & a greedy promoter made a sucker of the entire investor community.
Destroyed Value!
Today the rules are changing, the customer economy is taking over and so should you.
So what do we do? Gregg Gordon in The CEO’s Balancing act wrote
The CEO, however, has the objective of achieving two goals. The first is success in their customer
markets. The second is success in capital markets.
Two goals
What makes these two goals particularly difficult is that to be judged successful CEOs must achieve both
goals simultaneously. To achieve the first goal, the CEO must deliver more customer value than their
competitors through better products, services and effective use of their channels. As a measuring stick,
most of us would gauge success in the customer market by a company’s revenue or profit. The capital
market, on the other hand, comprises investors that make up hedge funds, pension funds, mutual funds,
private equity and banks. These investors are only interested in determining the correct valuation of a
company to ensure they make wise investment.
For the capital market, absolute profits are very important, but that’s not enough. Investors want to
understand how a company earned that profit. That’s because the size of the profit doesn’t provide any
indication about how much effort it took to earn. For example, two companies may be generating the
same amount of profit at the end of the year on the same revenue but are valued very differently. The
reason for this may be that one is competing through low-cost production and has high levels of debt due
to automated factories. The second may be competing on high levels of service. It may have no debt but
high labour costs. Even though the revenues and profits are the same, investors will value these
companies differently, which in turn influences the behaviour of their respective CEOs.
What’s surprising, though, is that with all the metrics a company puts in place to measure the fiscal and
operational health, very few are able to overtly measure and improve their employees’ innovative ability,
and the true customer value they are creating.

Gautam Mahajan is a thought leader
mahajan@customervaluefoundation.com

in

Creating

Value

and

can

be

reached

at

Call at (+91) 9971288580
Gautam Mahajan, President-Customer Value Foundation
M: +91 9810060368
Tel: 11-26831226, Fax: 11-26929055
email: mahajan@customervaluefoundation.com
website: http://www.customervaluefoundation.com

Value Creation By Customer Value Foundation
Customer Value foundation (CVF) helps companies to Create Value and profit by Creating Value for the customers, employee
and for each person working with the companies.
Total Customer Value Management (Total CVM) transform the entire company to focus on Creating Value for the customer by
aligning each person's role in Creating Customer Value and getting shareholder wealth and Value.

Value Creation By Customer Value Foundation

Contenu connexe

Tendances

Aligning Strategy & Sales. It's time to address the enormous cost of the Stra...
Aligning Strategy & Sales. It's time to address the enormous cost of the Stra...Aligning Strategy & Sales. It's time to address the enormous cost of the Stra...
Aligning Strategy & Sales. It's time to address the enormous cost of the Stra...Aneel Mitra
 
The New Buffettology
The New BuffettologyThe New Buffettology
The New BuffettologyAmit Rohit
 
Recession, how smart agencies can make money in a recession
Recession, how smart agencies can make money in a recessionRecession, how smart agencies can make money in a recession
Recession, how smart agencies can make money in a recessionPaul Birkett
 
Golden Goldfish - Taking Care of Your Most Important Customer and Employees
Golden Goldfish - Taking Care of Your Most Important Customer and EmployeesGolden Goldfish - Taking Care of Your Most Important Customer and Employees
Golden Goldfish - Taking Care of Your Most Important Customer and EmployeesStan Phelps
 
Reasons Why Entrepreneurship Makes You A Better Person | Carl Kruse
 Reasons Why Entrepreneurship Makes You A Better Person | Carl Kruse Reasons Why Entrepreneurship Makes You A Better Person | Carl Kruse
Reasons Why Entrepreneurship Makes You A Better Person | Carl KruseCarl Kruse
 
Purple Goldfish minibuk: Little Things Can Make the Biggest Difference in Bus...
Purple Goldfish minibuk: Little Things Can Make the Biggest Difference in Bus...Purple Goldfish minibuk: Little Things Can Make the Biggest Difference in Bus...
Purple Goldfish minibuk: Little Things Can Make the Biggest Difference in Bus...Stan Phelps
 

Tendances (6)

Aligning Strategy & Sales. It's time to address the enormous cost of the Stra...
Aligning Strategy & Sales. It's time to address the enormous cost of the Stra...Aligning Strategy & Sales. It's time to address the enormous cost of the Stra...
Aligning Strategy & Sales. It's time to address the enormous cost of the Stra...
 
The New Buffettology
The New BuffettologyThe New Buffettology
The New Buffettology
 
Recession, how smart agencies can make money in a recession
Recession, how smart agencies can make money in a recessionRecession, how smart agencies can make money in a recession
Recession, how smart agencies can make money in a recession
 
Golden Goldfish - Taking Care of Your Most Important Customer and Employees
Golden Goldfish - Taking Care of Your Most Important Customer and EmployeesGolden Goldfish - Taking Care of Your Most Important Customer and Employees
Golden Goldfish - Taking Care of Your Most Important Customer and Employees
 
Reasons Why Entrepreneurship Makes You A Better Person | Carl Kruse
 Reasons Why Entrepreneurship Makes You A Better Person | Carl Kruse Reasons Why Entrepreneurship Makes You A Better Person | Carl Kruse
Reasons Why Entrepreneurship Makes You A Better Person | Carl Kruse
 
Purple Goldfish minibuk: Little Things Can Make the Biggest Difference in Bus...
Purple Goldfish minibuk: Little Things Can Make the Biggest Difference in Bus...Purple Goldfish minibuk: Little Things Can Make the Biggest Difference in Bus...
Purple Goldfish minibuk: Little Things Can Make the Biggest Difference in Bus...
 

En vedette

How Young Companies Can Grow Faster, Smarter - Daniel Saks, AppDirect
How Young Companies Can Grow Faster, Smarter - Daniel Saks, AppDirect How Young Companies Can Grow Faster, Smarter - Daniel Saks, AppDirect
How Young Companies Can Grow Faster, Smarter - Daniel Saks, AppDirect Traction Conf
 
Boston Startup Scene Guide - Fall 2013
Boston Startup Scene Guide - Fall 2013Boston Startup Scene Guide - Fall 2013
Boston Startup Scene Guide - Fall 2013Jeffrey Bussgang
 
Introduction to Content Strategy, Technology, Engineering, Management and Sol...
Introduction to Content Strategy, Technology, Engineering, Management and Sol...Introduction to Content Strategy, Technology, Engineering, Management and Sol...
Introduction to Content Strategy, Technology, Engineering, Management and Sol...Joe Gollner
 
Strategy & Technology management- China Case Study
Strategy & Technology management- China Case StudyStrategy & Technology management- China Case Study
Strategy & Technology management- China Case StudyPawandeep Singh Maniktala
 
A Case Study On Technology Management
A Case Study On Technology ManagementA Case Study On Technology Management
A Case Study On Technology ManagementDivya Lekha
 
Technology and Innovation Management
Technology and Innovation ManagementTechnology and Innovation Management
Technology and Innovation ManagementJamil AlKhatib
 
19 Ways Growth Hackers Acquire Customers
19 Ways Growth Hackers Acquire Customers19 Ways Growth Hackers Acquire Customers
19 Ways Growth Hackers Acquire CustomersJustin Mares
 
Le Marketing Digital: introduction aux fondamentaux
Le Marketing Digital: introduction aux fondamentauxLe Marketing Digital: introduction aux fondamentaux
Le Marketing Digital: introduction aux fondamentauxAppsolute Digital
 
[SEN#7] Le Top 100 des entreprises qui recrutent dans le numérique
[SEN#7] Le Top 100 des entreprises qui recrutent dans le numérique[SEN#7] Le Top 100 des entreprises qui recrutent dans le numérique
[SEN#7] Le Top 100 des entreprises qui recrutent dans le numériqueFrenchWeb.fr
 
Technology and Innovation Management
Technology and Innovation ManagementTechnology and Innovation Management
Technology and Innovation ManagementJamil AlKhatib
 

En vedette (10)

How Young Companies Can Grow Faster, Smarter - Daniel Saks, AppDirect
How Young Companies Can Grow Faster, Smarter - Daniel Saks, AppDirect How Young Companies Can Grow Faster, Smarter - Daniel Saks, AppDirect
How Young Companies Can Grow Faster, Smarter - Daniel Saks, AppDirect
 
Boston Startup Scene Guide - Fall 2013
Boston Startup Scene Guide - Fall 2013Boston Startup Scene Guide - Fall 2013
Boston Startup Scene Guide - Fall 2013
 
Introduction to Content Strategy, Technology, Engineering, Management and Sol...
Introduction to Content Strategy, Technology, Engineering, Management and Sol...Introduction to Content Strategy, Technology, Engineering, Management and Sol...
Introduction to Content Strategy, Technology, Engineering, Management and Sol...
 
Strategy & Technology management- China Case Study
Strategy & Technology management- China Case StudyStrategy & Technology management- China Case Study
Strategy & Technology management- China Case Study
 
A Case Study On Technology Management
A Case Study On Technology ManagementA Case Study On Technology Management
A Case Study On Technology Management
 
Technology and Innovation Management
Technology and Innovation ManagementTechnology and Innovation Management
Technology and Innovation Management
 
19 Ways Growth Hackers Acquire Customers
19 Ways Growth Hackers Acquire Customers19 Ways Growth Hackers Acquire Customers
19 Ways Growth Hackers Acquire Customers
 
Le Marketing Digital: introduction aux fondamentaux
Le Marketing Digital: introduction aux fondamentauxLe Marketing Digital: introduction aux fondamentaux
Le Marketing Digital: introduction aux fondamentaux
 
[SEN#7] Le Top 100 des entreprises qui recrutent dans le numérique
[SEN#7] Le Top 100 des entreprises qui recrutent dans le numérique[SEN#7] Le Top 100 des entreprises qui recrutent dans le numérique
[SEN#7] Le Top 100 des entreprises qui recrutent dans le numérique
 
Technology and Innovation Management
Technology and Innovation ManagementTechnology and Innovation Management
Technology and Innovation Management
 

Similaire à Transforming Companies Through Value Creation not Value Destruction

Startups
StartupsStartups
StartupsAman G
 
The Implementation Of Revenue Recognition
The Implementation Of Revenue RecognitionThe Implementation Of Revenue Recognition
The Implementation Of Revenue RecognitionJulie Gonzalez
 
Customer Service And An Organization
Customer Service And An OrganizationCustomer Service And An Organization
Customer Service And An OrganizationSandy Harwell
 
Find the Blue Ocean
Find the Blue OceanFind the Blue Ocean
Find the Blue OceanInfoTrends
 
Critical Analysis On Hindustan Motors
Critical Analysis On Hindustan MotorsCritical Analysis On Hindustan Motors
Critical Analysis On Hindustan MotorsKristi Lucas
 
L2 winning strategies of market driving organization
L2   winning strategies of market driving organizationL2   winning strategies of market driving organization
L2 winning strategies of market driving organizationKinshook Chaturvedi
 
why standard valuation matrix is not the best way to value great businesses
why standard valuation matrix is not the best way to value great businesseswhy standard valuation matrix is not the best way to value great businesses
why standard valuation matrix is not the best way to value great businessesperfectresearch
 
How to Break Through No Man's Land - The Stage Where Growing Companies Get Stuck
How to Break Through No Man's Land - The Stage Where Growing Companies Get StuckHow to Break Through No Man's Land - The Stage Where Growing Companies Get Stuck
How to Break Through No Man's Land - The Stage Where Growing Companies Get Stucknewportboardgroup
 
Lean Thinking and the Third Party Logistics Provider
Lean Thinking and the Third Party Logistics ProviderLean Thinking and the Third Party Logistics Provider
Lean Thinking and the Third Party Logistics Providerunevendock6891
 
Rethinking marketing
Rethinking marketingRethinking marketing
Rethinking marketingNitin Jaitly
 
Corporate Digest Magazine December 2017
Corporate Digest Magazine December 2017Corporate Digest Magazine December 2017
Corporate Digest Magazine December 2017Kumar Kanaujia
 
Target Intern Interview
Target Intern InterviewTarget Intern Interview
Target Intern InterviewMelissa Long
 
Lean Thinking and the Third Party Logistics Provider
Lean Thinking and the Third Party Logistics ProviderLean Thinking and the Third Party Logistics Provider
Lean Thinking and the Third Party Logistics Providertenderboyfriend96
 

Similaire à Transforming Companies Through Value Creation not Value Destruction (20)

Essay Writing Business
Essay Writing BusinessEssay Writing Business
Essay Writing Business
 
Startups
StartupsStartups
Startups
 
The Implementation Of Revenue Recognition
The Implementation Of Revenue RecognitionThe Implementation Of Revenue Recognition
The Implementation Of Revenue Recognition
 
Customer Service And An Organization
Customer Service And An OrganizationCustomer Service And An Organization
Customer Service And An Organization
 
Find the Blue Ocean
Find the Blue OceanFind the Blue Ocean
Find the Blue Ocean
 
Essay Motivation In Business
Essay Motivation In BusinessEssay Motivation In Business
Essay Motivation In Business
 
Critical Analysis On Hindustan Motors
Critical Analysis On Hindustan MotorsCritical Analysis On Hindustan Motors
Critical Analysis On Hindustan Motors
 
Essay About Business
Essay About BusinessEssay About Business
Essay About Business
 
L2 winning strategies of market driving organization
L2   winning strategies of market driving organizationL2   winning strategies of market driving organization
L2 winning strategies of market driving organization
 
why standard valuation matrix is not the best way to value great businesses
why standard valuation matrix is not the best way to value great businesseswhy standard valuation matrix is not the best way to value great businesses
why standard valuation matrix is not the best way to value great businesses
 
Business Strategy Essay
Business Strategy EssayBusiness Strategy Essay
Business Strategy Essay
 
How to Break Through No Man's Land - The Stage Where Growing Companies Get Stuck
How to Break Through No Man's Land - The Stage Where Growing Companies Get StuckHow to Break Through No Man's Land - The Stage Where Growing Companies Get Stuck
How to Break Through No Man's Land - The Stage Where Growing Companies Get Stuck
 
Lean Thinking and the Third Party Logistics Provider
Lean Thinking and the Third Party Logistics ProviderLean Thinking and the Third Party Logistics Provider
Lean Thinking and the Third Party Logistics Provider
 
Business Essay Sample
Business Essay SampleBusiness Essay Sample
Business Essay Sample
 
Rethinking marketing
Rethinking marketingRethinking marketing
Rethinking marketing
 
Corporate Digest Magazine December 2017
Corporate Digest Magazine December 2017Corporate Digest Magazine December 2017
Corporate Digest Magazine December 2017
 
Target Intern Interview
Target Intern InterviewTarget Intern Interview
Target Intern Interview
 
Lean Thinking and the Third Party Logistics Provider
Lean Thinking and the Third Party Logistics ProviderLean Thinking and the Third Party Logistics Provider
Lean Thinking and the Third Party Logistics Provider
 
Marketing Mid-Term
Marketing Mid-TermMarketing Mid-Term
Marketing Mid-Term
 
Business Essay Writing
Business Essay WritingBusiness Essay Writing
Business Essay Writing
 

Plus de Total CVM

The 8 Principles of Customer Value Creation
The 8 Principles of Customer Value CreationThe 8 Principles of Customer Value Creation
The 8 Principles of Customer Value CreationTotal CVM
 
Journal of Creating Value Newsletter
Journal of Creating Value NewsletterJournal of Creating Value Newsletter
Journal of Creating Value NewsletterTotal CVM
 
Value of being anonymous
Value of being anonymousValue of being anonymous
Value of being anonymousTotal CVM
 
When less is more for customers
When less is more for customersWhen less is more for customers
When less is more for customersTotal CVM
 
Employee journey
Employee journeyEmployee journey
Employee journeyTotal CVM
 
The real source of value
The real source of valueThe real source of value
The real source of valueTotal CVM
 
Ci os as value creators
Ci os as value creatorsCi os as value creators
Ci os as value creatorsTotal CVM
 
CIOs as Value Creators
CIOs as Value CreatorsCIOs as Value Creators
CIOs as Value CreatorsTotal CVM
 
Value Creation Implementation Ideas. Avoid Value Destruction
Value Creation Implementation Ideas. Avoid Value DestructionValue Creation Implementation Ideas. Avoid Value Destruction
Value Creation Implementation Ideas. Avoid Value DestructionTotal CVM
 
Teaching Value Creation
Teaching Value CreationTeaching Value Creation
Teaching Value CreationTotal CVM
 
Value Added Stories to Increase Price
Value Added Stories to Increase PriceValue Added Stories to Increase Price
Value Added Stories to Increase PriceTotal CVM
 
Value Creation Vs. Death of Demand
Value Creation Vs. Death of DemandValue Creation Vs. Death of Demand
Value Creation Vs. Death of DemandTotal CVM
 
Do your Employees Feel Valued
Do your Employees Feel ValuedDo your Employees Feel Valued
Do your Employees Feel ValuedTotal CVM
 
Building Silos or Breaking Silos
Building Silos or Breaking SilosBuilding Silos or Breaking Silos
Building Silos or Breaking SilosTotal CVM
 
Why Training Does Not Create Great Leaders
Why Training Does Not Create Great LeadersWhy Training Does Not Create Great Leaders
Why Training Does Not Create Great LeadersTotal CVM
 
Encouraging Your People to Take the Long View
Encouraging Your People to Take the Long ViewEncouraging Your People to Take the Long View
Encouraging Your People to Take the Long ViewTotal CVM
 
Customer care or do we care
Customer care or do we careCustomer care or do we care
Customer care or do we careTotal CVM
 
ONE DAY PRICING SEMINAR , FRIDAY, FEBRUARY 22, 2013 , AT THE MIRADOR HOTEL, A...
ONE DAY PRICING SEMINAR , FRIDAY, FEBRUARY 22, 2013 , AT THE MIRADOR HOTEL, A...ONE DAY PRICING SEMINAR , FRIDAY, FEBRUARY 22, 2013 , AT THE MIRADOR HOTEL, A...
ONE DAY PRICING SEMINAR , FRIDAY, FEBRUARY 22, 2013 , AT THE MIRADOR HOTEL, A...Total CVM
 
Customer value over shareholder value
Customer value over shareholder valueCustomer value over shareholder value
Customer value over shareholder valueTotal CVM
 
Total CVM HRD Forum
Total CVM HRD ForumTotal CVM HRD Forum
Total CVM HRD ForumTotal CVM
 

Plus de Total CVM (20)

The 8 Principles of Customer Value Creation
The 8 Principles of Customer Value CreationThe 8 Principles of Customer Value Creation
The 8 Principles of Customer Value Creation
 
Journal of Creating Value Newsletter
Journal of Creating Value NewsletterJournal of Creating Value Newsletter
Journal of Creating Value Newsletter
 
Value of being anonymous
Value of being anonymousValue of being anonymous
Value of being anonymous
 
When less is more for customers
When less is more for customersWhen less is more for customers
When less is more for customers
 
Employee journey
Employee journeyEmployee journey
Employee journey
 
The real source of value
The real source of valueThe real source of value
The real source of value
 
Ci os as value creators
Ci os as value creatorsCi os as value creators
Ci os as value creators
 
CIOs as Value Creators
CIOs as Value CreatorsCIOs as Value Creators
CIOs as Value Creators
 
Value Creation Implementation Ideas. Avoid Value Destruction
Value Creation Implementation Ideas. Avoid Value DestructionValue Creation Implementation Ideas. Avoid Value Destruction
Value Creation Implementation Ideas. Avoid Value Destruction
 
Teaching Value Creation
Teaching Value CreationTeaching Value Creation
Teaching Value Creation
 
Value Added Stories to Increase Price
Value Added Stories to Increase PriceValue Added Stories to Increase Price
Value Added Stories to Increase Price
 
Value Creation Vs. Death of Demand
Value Creation Vs. Death of DemandValue Creation Vs. Death of Demand
Value Creation Vs. Death of Demand
 
Do your Employees Feel Valued
Do your Employees Feel ValuedDo your Employees Feel Valued
Do your Employees Feel Valued
 
Building Silos or Breaking Silos
Building Silos or Breaking SilosBuilding Silos or Breaking Silos
Building Silos or Breaking Silos
 
Why Training Does Not Create Great Leaders
Why Training Does Not Create Great LeadersWhy Training Does Not Create Great Leaders
Why Training Does Not Create Great Leaders
 
Encouraging Your People to Take the Long View
Encouraging Your People to Take the Long ViewEncouraging Your People to Take the Long View
Encouraging Your People to Take the Long View
 
Customer care or do we care
Customer care or do we careCustomer care or do we care
Customer care or do we care
 
ONE DAY PRICING SEMINAR , FRIDAY, FEBRUARY 22, 2013 , AT THE MIRADOR HOTEL, A...
ONE DAY PRICING SEMINAR , FRIDAY, FEBRUARY 22, 2013 , AT THE MIRADOR HOTEL, A...ONE DAY PRICING SEMINAR , FRIDAY, FEBRUARY 22, 2013 , AT THE MIRADOR HOTEL, A...
ONE DAY PRICING SEMINAR , FRIDAY, FEBRUARY 22, 2013 , AT THE MIRADOR HOTEL, A...
 
Customer value over shareholder value
Customer value over shareholder valueCustomer value over shareholder value
Customer value over shareholder value
 
Total CVM HRD Forum
Total CVM HRD ForumTotal CVM HRD Forum
Total CVM HRD Forum
 

Dernier

PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfHajeJanKamps
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfHajeJanKamps
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGlokeshwarmaha
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfJohnCarloValencia4
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxWorkforce Group
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBBPMedia1
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024Stephan Koning
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessAPCO
 
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...Khaled Al Awadi
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Winbusinessin
 
Slicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinSlicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinAnton Skornyakov
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...Brian Solis
 
Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Lviv Startup Club
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxJemalSeid25
 
Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato pptElizangelaSoaresdaCo
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsyasinnathani
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Onlinelng ths
 

Dernier (20)

PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdf
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
 
Investment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV IndustriesInvestment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV Industries
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
 
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
 
Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024Ethical stalking by Mark Williams. UpliftLive 2024
Ethical stalking by Mark Williams. UpliftLive 2024
 
Slicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinSlicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup Berlin
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
 
Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptx
 
Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato ppt
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story points
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Online
 

Transforming Companies Through Value Creation not Value Destruction

  • 1. Transforming companies through Value Creation not Value Destruction: The Balancing Act Understandably, no one will want to change unless he sees a value in the change. And the Value has to be tangible and worthwhile. Value Creation is obviously a good idea for companies. Sometimes, evangelists like me forget that for most people the current situation is comfortable (they derive value from comfort). Many have bosses or Boards or company owners that demand profitability albeit short term. And if they do not deliver they run the risk of being fired (a value destruction situation for them). So there are many reasons for following the road well-travelled. My friend Jim Carras said to me: “You seem to make a big point of stakeholder value not being a good objective for companies and I fully understand your concept. I believe you will need to accentuate the positive and not be too strong in changing what others believe to be important. I know it has a shock value for people to hear that shareholders should not be the vision but rather customers. It makes for good press. My first boss was Phil Crosby (ITT) and I can still hear him today preaching about customer satisfaction. You should take caution in how you sell the idea.” Talk about putting me in my place, Jim! But Jim is absolutely right, and if companies do even bits and pieces of value creation like some innovation, like some social work, like some customer value creation. They will be ahead of the game. The CEO has a balancing act on being accepted by the customers and by the investors! So, maybe we should start with what not to do. Avoid destroying Value. Keep looking over your shoulder and keep ahead of competition. Avoid becoming complacent, and continue to add value to your employees, customers and partners. It is easy to be destroying value even when you are creating profits. You can be running your company into the ground, by not renewing assets. For example, the 16 oz. plastishield glass bottle, selling 10 billion units for soft drinks and suddenly disappeared. You could like Enron destroy value for millions of shareholders. You could be like Blockbusters and Borders (my favourite bookstore), like Blackberry, letting go. Ambassador and Fiat India, RCA, Paine Webber, Drexel Burnham Lambert Beatrice foods, General Foods, Eastern Airlines, TWA and my old favourite Pan Am, Burger Chef, Compaq, Arthur Andersen, Standard Oil, American Motors etc. are examples that were successful but eventually died. Complacency, irrelevance, not reading the signs, destroying value to some stakeholders And don’t ignore countries that ruled the world or tried to, the British Empire, the French territories, the German war losses, Japan’s downhill ride. Ask what caused this? So what do we learn? Nothing is forever; you can’t take the future for Failure and success do not happen overnight. More often we fail to see the signs of failure. Failure does not mean extinction; you can bounce back by adding value. Never ignore anything that is negative, like customer complaints or a poor response to a product. Value Creation By Customer Value Foundation granted.
  • 2. Add Customer Value, first by measuring it an understanding why customers but and by adding value. Karl Slym, President of Tata Motors got 357 ideas just by talking to TCS employees, many of whom were his customers. So innovation is what you must do and it adds value. And talking of TCS, they were named among the most innovative companies, the most green company, the best CEO of the year, best mobile learning program etc…all indicators of value creation. On the other hand, Stock Guru wrote: -In the name of Power (a power company) one man made a sucker of the entire Indian population. A case study for future generations. Collected record amount of money from the public & the stock has become worthless. Marketing professionals & a greedy promoter made a sucker of the entire investor community. Destroyed Value! Today the rules are changing, the customer economy is taking over and so should you. So what do we do? Gregg Gordon in The CEO’s Balancing act wrote The CEO, however, has the objective of achieving two goals. The first is success in their customer markets. The second is success in capital markets. Two goals What makes these two goals particularly difficult is that to be judged successful CEOs must achieve both goals simultaneously. To achieve the first goal, the CEO must deliver more customer value than their competitors through better products, services and effective use of their channels. As a measuring stick, most of us would gauge success in the customer market by a company’s revenue or profit. The capital market, on the other hand, comprises investors that make up hedge funds, pension funds, mutual funds, private equity and banks. These investors are only interested in determining the correct valuation of a company to ensure they make wise investment. For the capital market, absolute profits are very important, but that’s not enough. Investors want to understand how a company earned that profit. That’s because the size of the profit doesn’t provide any indication about how much effort it took to earn. For example, two companies may be generating the same amount of profit at the end of the year on the same revenue but are valued very differently. The reason for this may be that one is competing through low-cost production and has high levels of debt due to automated factories. The second may be competing on high levels of service. It may have no debt but high labour costs. Even though the revenues and profits are the same, investors will value these companies differently, which in turn influences the behaviour of their respective CEOs. What’s surprising, though, is that with all the metrics a company puts in place to measure the fiscal and operational health, very few are able to overtly measure and improve their employees’ innovative ability, and the true customer value they are creating. Gautam Mahajan is a thought leader mahajan@customervaluefoundation.com in Creating Value and can be reached at Call at (+91) 9971288580 Gautam Mahajan, President-Customer Value Foundation M: +91 9810060368 Tel: 11-26831226, Fax: 11-26929055 email: mahajan@customervaluefoundation.com website: http://www.customervaluefoundation.com Value Creation By Customer Value Foundation
  • 3. Customer Value foundation (CVF) helps companies to Create Value and profit by Creating Value for the customers, employee and for each person working with the companies. Total Customer Value Management (Total CVM) transform the entire company to focus on Creating Value for the customer by aligning each person's role in Creating Customer Value and getting shareholder wealth and Value. Value Creation By Customer Value Foundation