Value: Redefined
We are a society that defines value by how much profit and gains an organization creates. Let’s call a spade a spade. For decades now, the more money a company makes, the better they look to owners, boards of directors, stockholders, and potential investors.
We are a money-driven culture, and most leaders are okay with that because the more money the company makes, the bigger bonuses the C-suite executives get to take home. Thus, cut-throat profits nurture barebones operating expenses.
The problem with this way of thinking is that corporations are so busy making record profits that they become blinded to anything else.
In a business world that is driven by massive profits and losses, how does an organization pivot to redefine what value really means? How does a company shift gears from only focusing on profits to accentuating the substantial value it has in its people?
Value isn’t defined only in the organization’s profits; value is also defined by the culture within the organization itself and how the people feel about where they work.
Truth Be Told
Let’s establish one truth—all companies have to make a profit in order to stay in business and be viable in this world. Organizations must turn a profit in order to keep their doors open and their lights on. Nobody will argue with that; it’s common knowledge.
However, truth be told, it is the people within those organizations who represent the most valuable resource. Whether it be virtual or a brick-and-mortar business, the true value within any organization lies with each and every person who shows up day after day—from the CEO to the person working cleanup, even down to the people who purchase the organization’s products and services.
In other words, value is found in the tangibles and intangibles.
Tangible Value
- Profit
- Products
- Technology
- Inventory
- Buildings
- Land
- Things we touch – physical assets
Intangible Value
- All relationships
- Partnerships
- Employee morale
- Culture
- Trademarks
- Domains
- Loyalty
- Word-of-mouth growth
- Things we can’t touch – invisible assets
The circumstance we must consider is, between the tangible and intangible values, will organizations choose to recognize the intangible value they possess? Do they see value in nurturing relationships, creating partnerships, and investing in employee morale?
Value
Value is about establishing and validating those people who make the organization what it is. Value is in the relationships people create and nurture, the culture the organization produces, and the satisfaction people feel about the place they work, the products they offer, and the people who stay loyal to the brand. Profits mean zilch if an organization can’t keep its employees or the people it serves.
In order to create or keep an organization viable in the world today, it needs to look beyond its gains and profits. Organizations need to examine the culture it creates, not only inside with its people, but outside as well.
