Like this:

I am currently engaging in some research that I expect will continue for the next 12 to 18 months about what are the common elements that exist within a business where Value flows in a balanced and sustainable manner.

I am looking at businesses using Value as my filter.  Some of my early conclusions are some of the following (not necessarily earth shattering and probably covered in a multitude of differing areas of studies, but I have not seen them represented via the Language of Value before.)

I am not limiting this study to Large Fortune 500 companies, I am looking at a large strata of businesses from the local bakery, Coffee Shop, Convenience store all the way to the large multinationals.

My list so far is :

Rhythm… Once you enter into the enterprise there is an established and palpable Rhythm that is not stress inducing on any stakeholders. It creates an environment where you get the feeling that this business machine works.

Offering Simple to Understand.. It appears that the product or service needs little or no explanation. The Customer is  engaged, knows what he needs and can interpret the offering in a manner that is not confusing  where he can easily make determinations of Value and what the offering is worth to him.

Customer Exchange is Smooth ..The exchange of the product or service between the customer and the enterprise is smooth, where expectations are met and where Customer management does not become burdensome. Value flows naturally and does not need to be forcibly extracted or agressively pushed.

No Excessive Financial Leverage and Good Cash Flow…There does not appear to be any significant stress induced due to excessive financial leverage or strain from a liquidity perspective. That does not mean that there is no Debt, it simply means that the ability of the business to generate sufficient cash flow to fulfill its financial obligations is not in question or threat and the business can absorb some of the normal and expected up and down cycles.

Effective & Competent Team with a Great Attitude…It is difficult to envision a business running well over the long term where the employees are miserable. In the successful businesses there always appears to be the right match of competence/capabilities to the functions and positions within the business.  Once this happens people generally have a chance to feel fulfilled and significant, they feel good about themselves which turns into a positive outlook. They generally have a progressive leader that nurtures the intrinsic needs of the employee and the performance gets to the right level through voluntary committment. Pride does appear to matter at least as much as money and the language of value is prevalent.

All Stakeholders needs met ..The business works in balanced harmony in its own Eco-System where the Customers, Investors, Suppliers, Employees and connected communities all have their needs met in a manner commensurate with their role. It is equitable, fair and appropriately transparent.

They know what they are good at and they stick to it but are able to change if needed …It is clear to the business leaders what they are good at and they commit to being the best at it. They understand their intrinsic value and how the marketplace perceives that value. They also strive to continually develop their competence, paying close attention to any shifting tides. They always appear to be just that little bit ahead of their Competitors. and they rarely appear to get caught out of position or need to shift into chaotic reactive agents.

Advertisement