Creating Value for Leaders : Balancing the Interests of Customers, Employees, Investors, and the Marketplace

Creating value is the foundation of all business. It’s what sets you apart from your competition, secures long-term customers, and brings distinct meaning to your brand and your stakeholders. Without creating value for your business, your unique offering will be seen as just another commodity in the eyes of your target market. Creating value is in every business leader’s vocabulary and uppermost in their overall strategy. In fact, creating value is the purpose of a company according to the Business Roundtable and the World Economic Forum. That is another key reason why more people want to understand and utilise value creation for their benefit and the good of their stakeholders. Many companies and leaders seek to create value but do not know how to. As a result, they create and destroy value unconsciously. This book shows you how to create value consciously. To create long-term value, organizations need to put in place the mindset, capabilities, and relationships that enable them to meet the needs of their customers and stakeholders. This book makes value creation understood and used by executives and leaders more effectively. The book describes value creation in its various nuances, how it arises, how it is used, and the width and scope of value creation, from how it impacts a company and how that company can become more successful by creating value for customers and other stakeholders. The author also provides tips for CEOs, managers, HR, and other professionals on how to succeed in value creation as a long-term strategy and in day-to-day work. Numerous examples and case studies illustrate the points being made by the author. The book describes value creation in its various nuances, how it arises, how it is used, and the width of value creation, from how it impacts a company and how that company can become more successful by creating value for customers. Cover 1 Endorsement Page 2 Half Title 6 Title Page 8 Copyright Page 9 Dedication 10 Table of Contents 12 Foreword by Professor Philip Kotler 18 Acknowledgements 20 About the Author 22 Introduction 24 The Importance of Value 24 Chapter 1 Value 28 Creating Value for Yourself Means Creating Value for Others 28 What Is Real Value? 30 The Impact of Culture on Creating Value 32 The Sense of Value 34 Using Customer’s Bill of Rights to Build a Customer Culture 36 Value of Belonging: The Orphaned Customer 39 Why “What’s in It for Me” Can Kill Value Creation 41 What Does Being Secure Have to Do with Creating Value? 43 Creating Value, Value Co-creation, and Value Destruction 45 From Value Grabbing to Value Creating: Lesson for Leaders 48 Is Value Co-creation Always Necessary 50 The Value Co-creation Platform 53 Wellbeing and Value Creation: Are They Two Sides of a Coin? 55 Chapter 2 Value Creation Education 58 Example of Value Creation in Education: At the Michener Center, U of Texas, Austin 58 Creating Value with Knowledge 60 Training vs. a Learning Mindset in Value Creation 62 Chapter 3 Customer Value 66 What Is Customer Value and How Can You Create It? 66 The Eight Principles of Customer Value Creation 69 Some Misconceptions about Customer Value 70 The Memory of Your Experience Is More Important Than Your Experience 71 Customer Value and Customer Satisfaction: Two Sides of the Same Coin? 73 Can Customer Value Change Customer Behaviour and Vice Versa? 75 Don’t Give Away Too Much to the Customer 78 Steps in Value Creation Implementation: The Customer Department 82 Customer Value Journey: Making the Journey Easy and Meaningful Creates Value 84 Customers as Ambassadors 86 How SMEs Benefit by Creating Value for Customers: A Case Study 88 Does a Customer Seek Customer Experience? 90 Customer-centric Circles, the Self-Directed Approach to Service and Mindset Changes 95 Ease and Simplicity Creates Experience and Value 106 Chapter 4 Customer Value Starvation 110 Air India, Whither Goest Thou, and Tata: How to Create Value 110 Adding More Value Does Not Cost Much; Creating Low Value Does Cost You 114 Value Creation Implementation Ideas. Avoid Value Destruction 116 When Zero Defects Are the Norm, Why Not Zero Customer Complaints? 118 Nuisance Value: Value Creation or Value Destruction? 120 Value Deprivation 121 Chapter 5 Employee Value 124 Employee Value Added Is Not What Companies Think! 124 Value Creation by Employees 127 Eight Tips for Value Creation for HR Professionals: Become Line Managers 128 Employee Journey 132 Using Employees to Build Market Place Foresight and Value Creation 134 Do Specialists Create More Value Than Generalists? 137 Chapter 6 Businesses and Institutions 140 Value Creation Is Output/Input 140 Are Companies Loyal? 142 The Real Sources of Value: Assets and Performance 143 Value Creation and Destruction in Customer Value Constellations 145 Four Types of Companies: My Learnings from Value Creation 147 Nine Reasons Why Your Company Isn’t Creating Value 152 Building Silos or Breaking Silos? Internal Customer Is a Flawed Concept! 157 Management by Creating Value 159 Does Value Creation Need Financial Incentives? 165 Companies Misunderstand Price 167 The Case for Value Creation Centres: Value Councils Go Beyond Pricing Councils and Innovation Councils 168 Journey of a Customer Value Creation Evangelist: From Companystan to Customerstan 170 Chapter 7 Profits and Value 174 How the Pure Profit Motive Destroys Value 174 The Great Balancing Act: You Can Tip the Balance! Increase Profits 178 Death of Profit: Customer Power Requires a Mindset Change to Improve Customer Retention and Profits 181 Value Added Stories to Increase Price 182 How Economics Creates Value 183 Chapter 8 Value Destruction 188 The Ukraine War Showcases Value Destruction and Learning from It 188 Look at Value Destruction to Create More Value 191 Co-Destruction 197 Value Destruction: Non-Value-Added Tasks Destroy Value 201 Will Value Destruction Ace Value Creation? Big Brother: Google, Apple, and Microsoft 205 Power and Value 206 Money and Power: Motivators of Conscious or Unconscious Value Destruction 207 Chapter 9 Leaders, Executives, and Value Creation 210 Value Creation and Leaders 210 Can Non-Owner Stakeholders Select CEOs to Create Value? 217 To Create More Value, Leaders Should Not Always Lead 218 Fear: Value Creator or Value Destroyer for Leaders 220 Trust Creates Value 221 Should Creating Value Be Part of Leadership and Education 222 Why Leadership Development Programs Fail: A Contrarian View 225 Why Training Does Not Create Great Leaders? 227 The Leadership Skill of Being Able to Unlearn: Create Value through Unlearning 228 No Time for Customers? Conduct a Task Audit 230 Are You a Value Creator or a Value Taker? 232 The Chief Creating Value Officer 235 Value Creation Implementation Ideas. Avoid Value Destruction 238 Chapter 10 Transformation and Value Creation 242 Value Creation for Transformational Growth of an Organization 242 Transforming companies through Value Creation, Not Value Destruction: The Balancing Act 244 Chapter 11 Purpose and Value Creation 248 Our Purpose in Life 248 The Purpose of a Company Defined by the World Economic Forum 249 Why Purpose Creates Value 252 What Is Value Creation and the New Purpose of a Company? 254 Chapter 12 Sustainability and Value Creation 258 Creating Value through Sustainability 258 Value Washing 266 Chapter 13 Disruption and Creating Value 272 Creating Value in a Disrupted Marketplace 272 Marketing and Disruption 277 Creating Value Out of Value Destruction by COVID-19 281 Chapter 14 Marketing and Value Creation 284 Marketing Must Prevent Customer Value Starvation to Increase Profits 284 Can Marketing Be a Value Destroyer? 287 Pitching Your Value Proposition: How to Focus on What Customers Value 291 De-Commoditizing Commodities: Add Value 292 Customer and Value Migration 294 Value of Being Anonymous? 296 Does Planned Obsolescence Destroy Value? 298 My Terms or Yours: What Creates More Value? 300 Chapter 15 Value Creation and Technology 302 Why Creating Value Is a Skill Needed for the Future with AI and Technology 302 Technology as a Potential Value Destroyer 304 CIOs Can Be True Value Creators 308 Chapter 16 Value Creation for Suppliers and Partners 310 Are You Adding Value to Your Suppliers and Partners? 310 The Supplier Strikes Back 313 Chapter 17 Value and Values 316 Driving Businesses from Values: Values Create Value (And Higher Profits) 316 Value and VBA 318 Corporate Unconsciousness: A Wakeup Call 325 Chapter 18 Value Waiting to Happen and Innovation 328 Value Waiting to Happen 328 Appendix A: Guide to Customer Value Creation Definitions 332 Index 350 Employee,value;,Value,destruction;,Disruption,and,creating,value;,Impact,of,culture,on,creating,value;,Importance,of,value;,Creating,value;,Customer,value;,How,economics,creates,value;,Value,creation,and,technology;,Customer,value,journey;,Transformation Employee value,Value destruction,Disruption and creating value,Impact of culture on creating value,Importance of value,Creating value,Customer value,How economics creates value,Value creation and technology,Customer value journey,Transformation