Value-Driven Purpose is
a statement of Organizational Purpose that reflects the target
markets or communities that you serve, the offerings and value that
you provide and the ultimate impact that is intended.
Performance is the commitment of your organization to
that Purpose; the Creation and Delivery of Real and Distinct Value to your
customers. Given the appropriate supporting tools (such as our
FastTrack 3-D Mapping Tools and Knowledge Base), the relentless
pursuit of creating and delivering real and distinct value is a
contributor to business success (or to the early recognition that
you need to diversify or exit).
Distinct Value That
Drives Your Purpose
Distinct Value and
Purpose are intertwined in defining a business.
Business Purpose is all about the impact that you have on your
marketplace; the marshalling of resources and competencies, in a
distinctive manner, to help people or organizations accomplish their
ends with less effort, less money, less time, greater pleasure, more
convenience and so on.
That is why we say
that, in general, the purpose of a business (or organization) is to
"Create and Deliver Real and Distinct Value". If you can't do that,
why would you exist?
So, based on this, the strength and meaning of your purpose will depend on the
nature, magnitude and distinctiveness of the value you provide.
Potential vs. Realized
Every market has
Potential Value because the population of every segment has
needs that are not yet addressed.
Some needs are obvious
and recognized and some are not.
Some needs are tangible
(eating) and some are intangible (being cool).
The ultimate purpose of
innovation is discovering and developing offerings that turn potential value into real value.
Real value that is created;
understood; communicated to the marketplace; delivered; and realized
by the customer.
Insights, we use a variety of
techniques to identify Potential Value and we then use proprietary
FastTrack 3D Mapping
Tools to build a knowledge base of the Realized and Potential
Value in each of your target market segments.
How Do You Develop and Implement
a Value-Driven Purpose and Value-Driven Performance?
First you have to
understand the primary objectives or ends of your target markets.
Because, ultimately, you want to provide them with an advantage in
achieving these objectives or ends (organizational and/or personal)
that they can't obtain anywhere else.
Then, you have to
understand the environment in which they are trying to achieve these ends.
This, in turn, helps you to understand their needs and then,
knowing how these needs are currently satisfied, you can understand the Potential and Realized Value in that
market (see previous column).
allows you to map out the environment for each market segment: their
ends or objectives; SWOTS; trends; and needs. It allows you to
consider potential Value-Driven initiatives and map them into the
segment. Viewing, discussing and thinking about potential
initiatives in this environment helps to develop strategies and
offerings that can turn Potential Value into Realized Value.
Employees are an
important source of customer needs and ideas for creating and
delivering additional Value - especially those employees that
interface with customers and prospects. Their ideas can also be mapped into the
customers' environment in FastTrack Navigator to identify potential
opportunities for innovation and the creation of Value.
As you can see in the
Our Approach, Navigator allows you to build a Markets and
Strategies "Map Folder"
of inter-related maps that stimulate, provide rationale for and
document organizational strategies and goals.
The Importance of
the impact that a sustainable competitive advantage (or delivery of
Distinct Value) creates. The
advantages are clear: the potential for clear differentiation in
positioning and messaging; appeal to the customer; higher margins due to value-based pricing
rather than competitive pricing; market leadership; company growth
theoretically limited by only market size; etc.
High margins and
sustained growth mean satisfactory or better profitability,
increased company valuation and shareholder/owner satisfaction.
clear Value-Driven Purpose based on Distinct Value and its impact on
customers provides positive motivation for employees. Value-Based
Performance, when the focus is Value for the customer, means
added value for all stakeholders.