“Can’t you just give me the two-minute elevator conversation about value?” While I understand the intense time-pressures faced by today’s executives, I also recognize the dangers of trying to communicate via Tweet-like bursts. Relevance and appropriateness are key. Effective communication is a two-way interaction: it entails cognitive interplay between the receiver and deliverer of a message. Any effective discussion of value must cover three areas — the scope of the company’s “value puzzle”, the desired degree of “value knowledge”, and the intended “value objective(s).” Use the Integrated Value Process (IVP) framework to address all three. Read More
Dynamic, matrix-based, adaptive, and market-driven businesses are complex. Executives are exhorted to coordinate intra- / inter-firm value activities for multiple stakeholders while simultaneously maintaining profitability. To do so, executives need a “new way of thinking” about integrated value management and a more relevant set of management principles based on systems theory / practice. 21st century business problems are difficult. They are made even more complex by incomplete, contradictory, and changing requirements. Systems researchers call these “wicked problems” with inherent “messiness”. Optimizing value within firms / across value chains is one such problem. Don’t let your company become a place “where value goes to die.” Avoid this “wicked problem!” Use the Integrated Value Process (IVP) framework to ensure value flows across your value chain.
Brain science provides a useful metaphor for business. Consider “collective intelligence” – what does a company “know”? To answer that question, one needs to study the system / network (e.g. the company), the interactions between groups in the company (e.g. its functions or departments), and the discrete activities of each of its members (e.g. the individual employees). A complex web of cognitive inter-relations / inter-dependencies exists in the brain, the firm, and the value chain. Systems-thinking and complexity theory provide useful tools to analyze both. The Integrated Value Process (IVP) framework is a complex, dynamic, interactive model for managing business value holistically across the value chain. Read More