Solving math problems requires using mathematical “first principles”. It also requires understanding multiple complementary domains (Algebra, Geometry, Calculus, Statistics & Proability, etc.), the types of problems each addresses, and how these domains connect / “fit together.” Business management also has multiple domains, i.e. Strategy, Marketing and Operations. They use multiple academic disciplines (e.g. Economics, Finance, Psychology, Quality, etc.) to solve different but complementary problems. However, each domain / discipline is insufficient by itself to resolve complex issues like Integrated Value Management (across a company / its value chain). All must be integrated and synthesized. Sadly value integration is sorely lacking in business. Use the Integrated Value Process (IVP) framework to manage value holistically and optimize your value flows! Read More
Business needs integration! Company value chains are increasingly riddled with inefficient and ineffective inter-company handoffs. Value chains require value to flow to the ultimate customer. For value to flow, three value chain “pipes” — physical, informational, and financial flows — need to be integrated. Intra- and inter-company processes also need to be aligned. Alignment requires a thorough understanding of value, its many definitions, and how the alternative definitions of value converge. If value is not properly understood and managed, multiple value perspectives of value chain stakeholders will diverge. Value gaps result. Value gaps can be eliminated and prevented through value integration. Use the Integrated Value Process to optimize value flows across your enterprise and value chain!
Language shapes how we think and what we “see”. Using partial definitions of value restricts one’s ability to “see” value in its multiplicity. It also inhibits one’s efforts to communicate value with others. The resulting misunderstanding / mistranslation lead to misalignment of efforts / activities across your firm. Misalignment is compounded across your value chain. Value gaps result.
Is your company a Tower of Babel? Remember the lessons from scriptures. Don’t let your value management efforts result in confusion, chaos and ruin! Use the Integrated Value Process (IVP) framework to optimize value flows across your enterprise and your value chain. Read More
Scientists recently released the first image of a black hole. The public viewed what it had formerly thought was un-seeable. We now had proof: black holes exist! This conclusion is partially true and partially false. When can we believe something — when do we “know” it is true? Conceptual theory generally predates empirical evidence. Thought experiments predict things we may not yet “see.” Oftentimes the evidence is present, but we need new “ways of thinking” to visualize it. That is the case with “value gaps” — the black holes of business value. Use the IVP framework to see them. Read More
“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
In order to understand value, one needs a robust theory of value (conceptual intelligence), a way of properly specifying value (encoded intelligence), an effective way to communicate value (emotional intelligence), and a way to decide which actions / activities to undertake (experiential intelligence). One needs to integrate or synthesize all four areas to be effective – for value to flow. Moreover, individuals across the organization need to do so simultaneously in order for value to flow across the organization and / or value stream. Read More
Value. Value-add. Value-driven. Value creation. Value chains. Value propositions. I hear speakers frequently use these terms at seminars / workshops and in the popular business press. Whose value? What is value? Says who? Where’s the proof? Read More