Value Creation Fundamentals

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The Path to Greater Value Creation

[/vc_column_text][vc_row_inner][vc_column_inner width=”1/4″][vc_column_text]Strategy,Structure and Systems are foundational in nature

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  • [us_btn text=”Structure” size=”13px” align=”left” icon=”fa-sitemap” color=”primary” link=”url:%23vcf1″]
  • [us_btn text=”Systems” size=”13px” align=”left” icon=”fa-gears” color=”primary” link=”url:%23vcf2″]

This cluster centers on how work gets done by people working together.

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  • [us_btn text=”Process” size=”13px” align=”left” icon=”fa-wrench” color=”primary” link=”url:%23vcf3″]
  • [us_btn text=”Culture” size=”13px” align=”left” icon=”fa-user” color=”primary” link=”url:%23vcf4″]

[/vc_column_text][/vc_column_inner][vc_column_inner width=”1/4″][vc_column_text]Business model relies on value and trust flowing freely

  • [us_btn text=”Business Model” size=”13px” align=”left” icon=”fa-money” color=”primary” link=”url:%23vcf12″]
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What in centrally managed and how the organization can change and learn strongly influences its ability to grow and adapt.

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  • [us_btn text=”Change” size=”13px” align=”left” icon=”fa-bar-chart-o” color=”primary” link=”url:%23vcf7″]
  • [us_btn text=”Learning” size=”13px” align=”left” icon=”fa-book” color=”primary” link=”url:%23vcf9″]

[/vc_column_text][/vc_column_inner][vc_column_inner width=”1/2″][vc_column_text]Arguably the most unifying theme that exists for all ‘for-profit’ businesses is Value Creation. Even those small organizations that have modest systems and tools to help them run their business, understand the criticality of revenue growth, cash flow and the impact that waste and inefficiency has on their profit margins.

As H.L. Menchen said in 1917 “there is always a well-known solution to every human problem — neat, plausible, and wrong”.

We feel the same about organizations and value creation. There is no simple quick fix.

This is why we have developed the integrated set of  Value Creation Fundamentals through the lens of Growth and Productivity. A synopsis of each interdependent element is covered on this website.[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row el_id=”vcf10″][vc_column animate=”aft”][vc_column_text]

Strategy

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[/vc_column_text][vc_row_inner][vc_column_inner width=”1/2″][us_single_image image=”3497″ size=”medium”][us_single_image image=”3325″ size=”full”][/vc_column_inner][vc_column_inner el_class=”people-sidebar” width=”1/2″ css=”.vc_custom_1398940718286{background-image: url(http://bvgintl.com/newbvg/wp-content/uploads/2014/04/blue-background-1013tm-bkg-179.jpg?id=1822) !important;}”][us_single_image image=”3336″ size=”thumbnail” align=”right” animate=”rfc” animate_delay=”0.2″][vc_column_text]Strategy is a plan of action or chosen set of policies to help you achieve some desired aim or goal. The language around  vision, strategy, mission and goals can be significantly troublesome. Language clarity is crucial before embarking of a Value Creation quest.

We are students and experienced practitioners of developing and executing Value Creation Strategies. We have learned from many others and we have developed some of our own methodologies. We have been strongly influenced by the best practices of others and have conducted extensive global studies with such companies as Toyota, Ford Motor Company, Bank of America, Capital One, Infosys, Foxconn, G.E., IBM, Apple and many more. We like one pagers and have a model that is helpful in bringing greater clarity to helping people understand the links between vision, purpose and strategy.

For us strategy is unconsciously linked to knowing who you are, why you do what you do,  where you are hoping to go and how you are going to get there.[/vc_column_text][/vc_column_inner][/vc_row_inner][us_separator type=”short” size=”small” icon=”fa-star”][/vc_column][/vc_row][vc_row el_id=”vcf1″][vc_column animate=”aft”][vc_column_text]

Structure

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There is much talk about Organizational Structure and a shift from traditional ways of working with a move to networks. Many posit that to have any chance to be successful in value creation in a competitive world, that the organization needs to shift to working more in networks, across boundaries and with greater autonomy. We outline a synopsized view of  the top 4 structure types that all leaders need to be aware of, understand and know how to operate.

  • Structure A – Traditional Strucutre
  • Structure B: Traditional Teams
  • Structure C: Mixed Internal Network
  • Structure D: Mix of Internal and External Networks

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Systems

[/vc_column_text][us_btn text=”Read More” link=”url:http%3A%2F%2Fbvgintl.com%2Fsupporting-vc%2Fsystems%2F” color=”contrast” size=”13px” align=”center” icon=”fa-gears”][vc_row_inner][vc_column_inner width=”1/2″][us_single_image image=”3497″ size=”medium”][us_single_image image=”1488″ size=”full” animate=”afc” animate_delay=”0.6″][/vc_column_inner][vc_column_inner el_class=”people-sidebar” width=”1/2″ css=”.vc_custom_1398940718286{background-image: url(http://bvgintl.com/newbvg/wp-content/uploads/2014/04/blue-background-1013tm-bkg-179.jpg?id=1822) !important;}”][us_single_image image=”3336″ size=”thumbnail” align=”right” animate=”rfc” animate_delay=”0.2″][vc_column_text]All companies have a management system or way of working. These systems must be intelligently designed, match the needs of the business and support the effective and efficient execution of strategy.

A system is a whole consisting of two or more parts that satisfies the following conditions :

  1. The whole has one or more defining properties or functions
  2. Each part in the set can affect the behavior or properties of the whole
  3. The way that each essential part of a system affects its behavior or properties depends on (the behavior or properties of) at least one other essential part of the system.

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People

[/vc_column_text][us_btn text=”Read More” link=”url:http%3A%2F%2Fbvgintl.com%2Fsupporting-vc%2Fpeople%2F” style=”outlined” color=”contrast” align=”center” icon=”fa-People”][vc_row_inner][vc_column_inner width=”2/3″][us_single_image image=”3496″ size=”medium”][vc_video link=”http://www.youtube.com/watch?v=qtPbPczsToA” ratio=”4×3″][/vc_column_inner][vc_column_inner el_class=”peopleside” width=”1/3″ css=”.vc_custom_1398940910196{background: rgba(95,183,168,0.76) url(http://bvgintl.com/newbvg/wp-content/uploads/2014/04/blue-background-1013tm-bkg-179.jpg?id=1822) !important;*background-color: rgb(95,183,168) !important;border-color: #000000 !important;border-style: solid !important;}”][us_single_image image=”3336″ size=”thumbnail” align=”right” animate=”rfc” animate_delay=”0.2″][vc_column_text]No one works alone and the manner in which we engage with others ultimately determines how efficiently and effectively we are able to grow, be productive and create value.

We all have our beliefs and motivations and many might argue that we are all different. However it is a sociological fact that we are more unified by what we have in common than by how we are different.

We have distilled our version of the 5 things that most professional employees want from a work environment. They are explained in this short video.[/vc_column_text][/vc_column_inner][/vc_row_inner][us_separator type=”short” size=”small” icon=”fa-star”][/vc_column][/vc_row][vc_row color_scheme=”secondary” el_id=”vcf3″][vc_column animate=”aft”][vc_column_text]

Process

[/vc_column_text][us_btn text=”Read More” link=”url:http%3A%2F%2Fbvgintl.com%2Fsupporting-vc%2Fprocess%2F” style=”outlined” color=”contrast” size=”13px” align=”center” icon=”fa-wrench”][vc_row_inner][vc_column_inner width=”2/3″ css=”.vc_custom_1401483321923{margin-right: 40px !important;background-color: rgba(214,242,176,0.42) !important;*background-color: rgb(214,242,176) !important;}”][us_single_image image=”3496″ size=”medium”][us_image_slider ids=”3547,3546,3545″ type=”1″][/vc_column_inner][vc_column_inner width=”1/3″ css=”.vc_custom_1401404000459{background-color: rgba(129,215,66,0.95) !important;*background-color: rgb(129,215,66) !important;}”][us_single_image image=”3336″ size=”thumbnail” align=”right” animate=”rfc” animate_delay=”0.2″][vc_column_text]All work is done in a process. Every single quest to improve productivity always involves working on the processes where the work get done.

Process and Value Chain mapping is vital for every organization to practice. It helps in better understanding how value flows, knowing what is value added and what is not and identifying where there is inefficiency and waste. Armed with this data, leaders can make more informed decisions about where to apply their scarce resources.

Process work is usually linked with productivity but it can also be a crucial contributor to control and repeatability which supports scalable growth.  It essentially delivers the double punch of enabling both growth AND productivity.[/vc_column_text][/vc_column_inner][/vc_row_inner][us_separator type=”short” size=”small” icon=”fa-star”][/vc_column][/vc_row][vc_row height=”auto” color_scheme=”secondary” el_id=”vcf4″][vc_column animate=”aft”][vc_column_text]

Culture

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[/vc_column_text][vc_row_inner][vc_column_inner width=”1/2″][us_single_image image=”3496″ size=”medium”][vc_video link=”http://www.youtube.com/watch?v=CqnnUfVI8lA&feature=share&list=UUbUdBYTanR4AwazkvOK-upg”][/vc_column_inner][vc_column_inner width=”1/2″ css=”.vc_custom_1398936495888{background-color: rgba(129,215,66,0.95) !important;*background-color: rgb(129,215,66) !important;}”][us_single_image image=”3336″ size=”thumbnail” align=”right” animate=”rfc” animate_delay=”0.2″][vc_column_text]Culture is the integrated set of LEARNED behaviors that are the result of the combination of:

  • Defining moments during the formative years of the company.
  • What gets rewarded or punished.

We believe that Culture is the only truly sustainable competitive advantage for a business. It is impossible for a competitor to replicate. Of course we are not the only ones that share that belief. Even Peter Drucker the famed Business Management consultant proclaimed that Culture eats strategy for breakfast. Executives that are serious about Value Creation through Growth and Productivity cannot afford NOT to pay attention and work to ensure that they have a culture that helps them compete and win.[/vc_column_text][/vc_column_inner][/vc_row_inner][us_separator size=”large” icon=”fa-minus-circle”][/vc_column][/vc_row][vc_row el_id=”vcf12″][vc_column][vc_column_text]

BUSINESS MODEL

[/vc_column_text][us_btn text=”Read More” link=”url:http%3A%2F%2Fbvgintl.com%2Fvalue-creation-fundamentals%2Fbusiness-model%2F|||” align=”center” icon=”fa-money”][vc_row_inner][vc_column_inner width=”1/2″][us_single_image image=”3494″ size=”medium”][us_single_image image=”3370″ size=”full”][/vc_column_inner][vc_column_inner width=”1/2″][vc_column_text]Companies that are successful at delivering sustained value creation tend to be paranoid and extremely vigilant about their business model and how it works.

This business model graphic attempts to convey the concept that the business model needs to be constantly reviewed in two directions.

  • One in the form of value stream analysis from the customer side.
  • The second is equivalent to zero based budgeting with a costing and margin analysis going from the supply base all the way to the point of sales and service/warranty.

Part of the benefit or outcomes from that exercise is to know and be able to closely monitor the highest points of leverage (and protect them) and also be able to monitor points of vulnerability. We are constantly amazed about how many employees of large companies do not have a real grasp on the basics of their companies business model. At the very least employees  need to be made aware of the up and down stream consequences of their decisions to the overall health of the business.[/vc_column_text][/vc_column_inner][/vc_row_inner][us_separator type=”short” size=”small” icon=”fa-star”][/vc_column][/vc_row][vc_row el_id=”vcf8″][vc_column animate=”aft”][vc_column_text]

Value

[/vc_column_text][us_btn text=”Read More” link=”url:http%3A%2F%2Fbvgintl.com%2Fsupporting-vc%2Fvalue%2F” size=”13px” align=”center” icon=”fa-dollar”][vc_row_inner][vc_column_inner width=”1/3″][us_single_image image=”3494″ size=”medium”][vc_column_text]Value is a subjective concept that depends on each individual’s judgment. (Personal)

People deem something is valuable when what they receive and the derived benefits, are determined to be worth whatever it is that they are giving up. (Not limited to money)

This occurs in an exchange process where both parties come voluntarily with their unmet needs and wants (Expressed or hidden).They also bring an offering.[/vc_column_text][/vc_column_inner][vc_column_inner width=”1/3″][vc_column_text]

Marketplace,Exchange and Fairness

 

[/vc_column_text][/vc_column_inner][vc_column_inner width=”1/3″][us_single_image image=”3336″ size=”thumbnail” align=”right” animate=”rfc” animate_delay=”0.2″][vc_column_text]When a party derives a benefit that is matched to what his/her expectations were, they tend to be satisfied. They feel the experience was worth it and that they received good value. (Satisfaction)

They then may be willing to return to make a similar trade or exchange in the future. (Loyalty)

For value to be created and flow in a sustainable manner, it is linked to the principles of Marketplace, Exchange and Fairness[/vc_column_text][/vc_column_inner][/vc_row_inner][us_separator type=”short” size=”small” icon=”fa-star”][/vc_column][/vc_row][vc_row el_id=”vcf6″][vc_column animate=”aft”][vc_column_text]

Trust

[/vc_column_text][us_btn text=”Read More” link=”url:http%3A%2F%2Fbvgintl.com%2Fsupporting-vc%2Ftrust%2F” color=”contrast” size=”13px” align=”center” icon=”fa-thumbs-up”][vc_column_text]

[/vc_column_text][vc_row_inner][vc_column_inner width=”1/2″][us_single_image image=”3494″ size=”medium”][us_single_image image=”1543″ size=”medium” align=”center” animate=”wfc” animate_delay=”0.2″][/vc_column_inner][vc_column_inner width=”1/2″ css=”.vc_custom_1398936495888{background-color: rgba(129,215,66,0.95) !important;*background-color: rgb(129,215,66) !important;}”][us_single_image image=”3336″ size=”thumbnail” align=”right” animate=”rfc” animate_delay=”0.2″][vc_column_text]Trust is an intangible currency that people exchange when they are working or in relationship with each other. It is a vital component to enable speed for high performing value creating companies.

Organizations cannot afford to slow down and wait until all the t’s are crossed and i’s are dotted. Most times executives have got to move and trust in others. Trust is part of the glue that allows them to have the confidence to move in uncertain times.

Trust depends on you. Without ‘U’ there can be no trust. The most effective Value Creation leaders are aware of and take personal responsibility for contributing to an environment where trusted relationships can prosper. We like the term ‘economics of trust’ and it merits very close attention. It is crucial for encouraging a healthy level of fast, innovative risk taking in all relationships.[/vc_column_text][/vc_column_inner][/vc_row_inner][us_separator size=”large” icon=”fa-minus-circle”][/vc_column][/vc_row][vc_row color_scheme=”secondary” el_id=”vcf11″][vc_column][vc_row_inner][vc_column_inner][vc_column_text]

CENTRALIZATION

[/vc_column_text][us_btn text=”Read More” link=”url:http%3A%2F%2Fbvgintl.com%2Fvalue-creation-fundamentals%2Fcentralize-decentralize|||” align=”center” icon=”fa-bullseye”][/vc_column_inner][/vc_row_inner][vc_row_inner][vc_column_inner width=”1/2″][us_single_image image=”3495″ size=”full”][us_single_image image=”3347″ size=”full”][/vc_column_inner][vc_column_inner width=”1/2″][vc_column_text]As leaders operate their businesses there are generally high level business stages that they have to deal with. The  stages in a Companies Life Cycle are : Early Stage, Growth, Maturity followed usually by decline. During that lifecycle, companies invariably face the inevitable task of having to centralize some levels of co-ordination and control to get the whole of the company working better and more efficiently together.

The graphic shown depicts 4 distinct centralization-decentralization steps in what often becomes a perpetual cycle as companies grow through numerous growth phases. This process is particularly relevant as companies grow through acquisition and synergies need to be extracted as resources get consolidated.[/vc_column_text][/vc_column_inner][/vc_row_inner][us_separator type=”short” size=”small” icon=”fa-star”][/vc_column][/vc_row][vc_row color_scheme=”secondary” el_id=”vcf7″][vc_column animate=”aft”][vc_column_text]

Change

[/vc_column_text][us_btn text=”Read More” link=”url:http%3A%2F%2Fbvgintl.com%2Fsupporting-vc%2Fchange%2F|||” color=”contrast” size=”13px” align=”center” icon=”fa-bar-chart-o”][vc_row_inner][vc_column_inner width=”2/3″][us_single_image image=”3495″ size=”medium”][us_single_image image=”371″ size=”full” align=”center” animate=”afl” animate_delay=”0.8″][/vc_column_inner][vc_column_inner width=”1/3″ css=”.vc_custom_1398936495888{background-color: rgba(129,215,66,0.95) !important;*background-color: rgb(129,215,66) !important;}”][us_single_image image=”3336″ size=”thumbnail” align=”right” animate=”rfc” animate_delay=”0.2″][vc_column_text]There can be no Growth or Productivity improvements without change. Change can not be effectively managed merely by following a process or a methodology. Change mastery goes much deeper.It often requires deep levels of work in helping people to come to grips with the underlying motives and intents of all stakeholders.

It is said that no real change happens until the sabotage occurs. While this is somewhat stark, people that are not sufficiently enrolled in the process often use massively complex behavioral responses that can be exceptionally difficult to deal with. Passive aggressive behavior that leads to subtle sabotage is an example of one common defense mechanism. It is very difficult to identify and address. We help pull back the curtain on all unhelpful behaviors and help executives to have the capacity and confidence to lead change in a positive, wholesome and accelerated manner.[/vc_column_text][/vc_column_inner][/vc_row_inner][us_separator type=”short” size=”small” icon=”fa-star”][/vc_column][/vc_row][vc_row color_scheme=”secondary” el_id=”vcf9″][vc_column animate=”aft”][vc_column_text]

LEARNING

[/vc_column_text][us_btn text=”Read More” link=”url:http%3A%2F%2Fbvgintl.com%2Fsupporting-vc%2Flearning%2F|||” size=”13px” align=”center” icon=”fa-book”][vc_row_inner][vc_column_inner width=”1/2″][us_single_image image=”3495″ size=”medium”][us_single_image image=”589″ size=”full” link=”url:..%2Fsupporting-vc%2Flearning%2F”][/vc_column_inner][vc_column_inner width=”1/2″][us_single_image image=”3336″ size=”thumbnail” align=”right” animate=”rfc” animate_delay=”0.2″][vc_column_text]Growth and Productivity increases in any organization are strongly correlated to the growth and development of the people. We refer to this as Learning VS Training. Peoples competency and collective capacity to work more effectively together as a whole is of vital importance in maximizing Value Creation. It merits serious and renewed attention!! Many executives appear to have blind spots in making this connection, but it has been proven countless times by the companies that make up the 12% of sustained value creators.

NO company can expand and grow without their employees taking some intelligent risks. Many times this occurs during times of significant uncertainty which breeds fear and hesitation. This is where the MAJORITY of learning occurs and how experience is accumulated. Creating the conditions where the organizational culture and environment is committed to  harvesting lessons learned and getting a blend of supporting developmental programs WITHOUT punishing developmental failure, is one of an Executives most important tasks. We help Executive create those conditions.[/vc_column_text][/vc_column_inner][/vc_row_inner][us_separator size=”large” icon=”fa-minus-circle”][/vc_column][/vc_row]