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