Value Creation Model™

 

My business model for value creation is to develop strategic partnerships, launch new products/services, build high performance teams, and create scalable operations through business process innovation. This is supported through my persistence on generating a high Return on Energy (ROE) for new business initiatives while preserving an open & collaborative leadership style to test new market concepts. 

 

The formula below is not a mathematical equation where you plug in numbers and the business value of your intiative will magically appear - that would be too easy (or difficult depending on your profession).  The formula is designed to be a management philosophy.  Applying this philosophy to my business has yielded great returns over time.  Below is short synopsis of each component that is explained in greater detail in my articles:

 

Speed - Adapting to change quickly is critical and mobilizing your teams is essential.  Enabling your people with the tools, technology, & resources they need to be highly productive and move quickly is just as important.  When you have the entire organization structured in this manner, you create the speed advantage.

 

Leading People - Lots of books & videos will cover this as I've learned over the years.  It goes beyond textbook leadership practices and creating a trusted & mutually accountable relationship with your people - that is the holy grail of leadership from my perspective.

 

Strategic Partnerships - Building strategic partnerships using a common platform is how I like to build businesses.  From suppliers to technology partnerships to customers, the goal of strategic partnerships is building a mutually relevant relationship.  

 

New Products/Services - Understanding your customer/partner needs and applying them to solve business problems.  New product/service ideas need to come from all areas of the business and all levels - listen carefully.

 

Process Innovation - Ease of doing business will get you more business. Period.  Many companies leave money on the table by not taking care of "the back door".  While big investments are typically reserved for large projects, there is a case to make big investments in many small projects or improvements that create efficienices, make life easier for customers/employees, and most importantly build flexibility into everyone's job to spend more time on higher value activities. Read the book Cause A Disturbance by Ken Tencer & John Paolo Cardoso for more on this topic.

 

Technology - Investing in technology to create a competitive advantage is a given, however, which technologies you deploy to create it is the million dollar question.  Starting with a competitive review and aligning technology investments with the company's vision & business objectives is a great place to start.

 

Complexity - Reducing complexity reduces costs, increases efficiency, and unlocks value.  It will create points of clarity among your employees, customers, partners, and suppliers. 

 

Return on Energy - We have limited resources and budget available.  Deploying a disciplined focus on which market opportunities are pursued will yield exceptional returns and will naturally create competitive differentiation in your business.  Saying 'no' more than 'yes' and where you say 'yes' is the key.

Value = S{4P/T+ROE-C} * M


Where:

 

S = Speed
 

4P = Leading People + Strategic Partnerships + New Products/Services + Process Innovation
 

T = Technology
 

ROE = Return on Energy
 

C = Complexity

 

M = Mid-market+

Contact Me

Tel: 416-970-5712

businessbuilder@joegraci.com

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© 2015 by Joe Graci