Outcomes, Benefits, Value
Kumilos Vision is all about collective value creation. But in order to better understand value, we must understand it in the context of outcomes and benefits. These three concepts are interlinked in an important way.
Projects DELIVER outcomes. Outcomes are results that are punctual and specific. An example would be to deliver a new IT solution through an IT project.
But do we REALIZE benefits just because we go live on a new IT solution? We can have a new IT solution that no one uses. Sometimes, we install a new IT solution without doing the necessary validation as to our capacity and capabilities to run it, without change management or internal and external communications. We add training at the end thinking it will be enough. So if one of the benefits we want to realize is increased efficiency, we will need all these separate projects delivered in a coordinated way, sequentially, in the form of a program in order to realize that benefit.
Where does value creation come in? Value CREATION can be understood through the lens of benefits realization combined to solve a problem or problems specific to someone or a group of people. In other words, value creation is all about solving problems for someone. If your targeted benefits do not help anyone, then you do not create any value.
Why is this important you may ask?
The definition of value is crucial in understanding why you do business in the first place. Businesses normally start because they want to create value. What that really means is that there was a problem for someone that they wanted to solve with a product or service. The real VISION or WHY a business usually starts is because someone out there got tired of seeing a problem and they decide to fix it. The problem could be their problem or a more global problem. Businesses thrive, grow and become successful because they did a good job solving that problem. However and unfortunately, some businesses lose sight of that initial vision to solve problems and get pulled into new pressures and drivers to create a different kind of value more focused on a financial, monetary kind. When the ultimate goal becomes shareholder value and not collective value, then we can lose sight of what is really important and that is our people (employees) and our clients (customers). Whether we call it the value proposition or vision, it is lost along the way in the pursuit of quarterly numbers to please shareholders. Companies now get really good at creating shareholder value but are they still really creating value, and more importantly, COLLECTIVE value? Where does the priority lie?
The good news is that there is a way to get back to creating collective value. We can go back to basics and focus on PEOPLE and their needs and pains. We can go back to their gains and how products and services can help solve their problems. Focusing on PEOPLE internally will also result in more engaged, inspired and driven employees. In doing so , they will work harder to deliver a more professional, efficient and awesome product or service. When we go back to business fundamentals, we create collective value which in turn creates shareholder value. The equation is simple: happy employees equals best in class products and services which ultimately leads to happy and loyal customers.
How do you define value in your business? Where do your priorities lie? Why do you do what you do and how can your value proposition and vision align to go back to basics?
