Is Your Team Focused on Value Creation?

Business Survival Tip
Episode 32
By Carl Kleimann
March 3, 2010

Full Interview transcript

Carl: Hello business owners this is Carl Kleimann from Odyssey OneSource with another Business Survival Tip. You know, it is easy to fall into the trap of thinking that the purpose of a business is to make money. Effective leaders know that the purpose of any business is to create value; value for customers and value for shareholders. And while it may be possible to make money in the short run without creating much value, in the long-run, it is unsustainable.

This simple but powerful concept has sparked a formidable focus for some of today’s most notable organizations. Apple is one of my favorite examples. If you have ever interacted with an Apple employee at one of their genius bars, then you have experienced value creation. And their products have not just enhanced but have revolutionized the way that we listen to music and the way that we depend upon our cell phones. With my iPod, my music is always with me. And with my iPhone, I can control my home DVR, log my workout routine, and find the nearest ATM or restaurant. Apple brings me unprecedented value and in exchange, I am extremely loyal.

So, is everyone on your team focused on value creation? Don’t leave this to chance. Have a formula for measuring the value that your organization creates and make sure that everyone on your team knows that formula. Reward employees when they achieve the desired outcomes. And never allow employees to confuse value with good service. Good service is expected. Value on the other hand is the net impact that you have on your customer relative to the next best alternative they have for acquiring the product or service that you provide. Once you get your employees aligned around this concept, you will experience teamwork at a whole new level.

I am Carl Kleimann and this has been another Business Survival Tip by Odyssey OneSource, ranked as the number one Professional Employer Organization three years running by the Black Book of Outsourcing.
For more information on this and other issues affecting employers, please visit odysseyonesource.com.