Creating value is relatively straightforward if you do not complicate the equation. It is simple: Value = Outcomes / Cost. While fundamentally I agree with HBR’s, “8 Reasons Companies Don’t Capture More Value”, there is a ninth component missing – Voice of the Customer i.e. customer satisfaction. Value is often subjective, in the eyes of the beholder, and yet vitally important to any business. Listening to the “voice” enables an identification of an underserved market or becoming the best in what you provide – not just the product but your zealot customers who advocate on your behalf. Businesses who ignore the subjective lenses of their customers do so at their own peril.
I recommend focus first on the desired outcomes and conduct a reverse planning sequence to ensure your company can predictably deliver the outcome on time, on target, every time. It is not easy, but a standards-based Value Management approach can help your company capture more value and gain a competitive edge. Its not about the quick win, its about delivering value over the long haul that matters most. Whether you are buying a car, shopping at a retail store, contemplating asking someone to marry you, or choosing a doctor what motivates you? Why do you listen to Car and Driver Reports? Or what the clerk says you look good in? Why do you ask so many questions of your potential spouse before busting open the piggy bank to pay for an oversized ring? Or ask friends what doctor they’d recommend? The answer is simple…you care about the outcome. After all no one goes into marriage seeking a divorce