When value drives decisions, profits follow. Vexing problems can be solved with value creation imagination. Business can raise standards of living when value sits at its core. This is the path to broad prosperity.

Think Value, Profit Follows



Reduce willingness to sell (WTS) of talent and suppliers. Compensation shifts value, better working conditions create value. Improve collaboration to reduce supplier costs. <ul><li>Fear of uneven benefit sharing limits potential. </li><li>Share gains to encourage win-wins. </li><li>Lowering WTS increases commitment and flexibility.</li></ul>

Value for Employees and Suppliers: Willingness To Sell

Cascade strategy with value maps that link value concepts to projects and KPIs. Illustrate how each activity raises WTP or lowers WTS. Connect strategic objectives to operational drivers. This alignment empowers the organization to create value.

Map Value to Performance 



Value or profit is a false choice. Exceptional financial performance reflects value.

<ul><li>Boost productivity through scale, learning and management basics. </li><li>The best firms are far more productive than laggards. Management tools like goal setting and feedback are powerful but underused. </li><li>Scale and learning effects can also substantially lower costs. </li><li>First mover advantage only lasts if learning is at an optimal pace.</li></ul>

Productivity 



If your product is great, it doesn’t need to be good.

Value must be the core, not profit. Business reputation suffers when value is neglected. Creativity applied to value benefits all. Make life better for customers, employees and partners. This purpose leads to exceptional performance.

Do the Right Thing

Some companies are far more successful than others, even when they appear nearly identical on the surface.For example, Home Depot is significantly more profitable than its competitor Lowe's, despite both being home improvement retailers.The key difference lies in how exceptional companies create value for customers, employees, and partners - not just how much profit they can extract.The message is clear: focus on value first, profit second.

The Premise: Value First

Focus on increasing willingness to pay (WTP), not just sales. Go beyond quality and branding to leverage complements that raise WTP. Like Amazon selling Kindle e-readers and ebooks together.<ul><li> Identify and double down on the few key value drivers that influence customer purchase decisions. </li><li>Eliminate unnecessary features that don't move WTP. </li><li>Value for customers creates competitive advantage.</li></ul>

Value for Customers: Willingness To Pay

The book "Better, Simpler Strategy: A Value-Based Guide to Exceptional Performance" was written by Felix Oberholzer-Gee and was published by Harvard Business Review Press in 2021. The book offers a strategic framework for companies looking to achieve exceptional performance by doing less, and has been named one of the best strategy books of 2021.

Named one of the best strategy books of 2021 by strategy+businessGet to better, more effective strategy.In nearly every business segment and corner of the world economy, the most successful companies dramatically outperform their rivals. What is their secret? In Better, Simpler Strategy, Harvard Business School professor Felix Oberholzer-Gee shows how these companies achieve more by doing less. At a time when rapid technological change and global competition conspire to upend traditional ways of doing business, these companies pursue radically simplified strategies. At a time when many managers struggle not to drown in vast seas of projects and initiatives, these businesses follow simple rules that help them select the few ideas that truly make a difference.Better, Simpler Strategy provides readers with a simple tool, the value stick, which every organization can use to make its strategy more effective and easier to execute. Based on proven financial mechanics, the value stick helps executives decide where to focus their attention and how to deepen the competitive advantage of their business.How does the value stick work? It provides a way of measuring the two fundamental forces that lead to value creation and increased financial success—the customer's willingness-to-pay and the employee's willingness-to-sell their services to the business. Companies that win, Oberholzer-Gee shows, create value for customers by raising their willingness-to-pay, and they provide value for talent by lowering their willingness-to-sell. The approach, proven in practice, is entirely data driven and uniquely suited to be cascaded throughout the organization.With many useful visuals and examples across industries and geographies, Better, Simpler Strategy explains how these two key measures enable firms to gauge and improve their strategies and operations. Based on the author's sought-after strategy course, this book is your must-have guide for making better strategic decisions.

Map Value to Performance

Similar ideas to Map Value to Performance

How do you overcome Parkinson’s Law?

How to study 📚🦋💻📑

Get organized

Pay attention in class