In order to have a conversation regarding raising your value in your organization, we need to have a common definition of value from which to work. In the Raise Your Visibility & Value model:
Value is when the outcome of a situation exceeds the cost incurred by a satisfactory margin.
While most of the words and phrases in this definition are self-explanatory, “outcome of a situation,” “cost,” and “satisfactory margin” require additional explanation.
First let’s address “outcome of a situation.”
How you assess value starts with the outcome you are seeking in the first place. Another way to think about this is to ask yourself, “What are my expectations for an outcome?” Expectations play a significant role in how you feel about the outcome of a situation into which you are entering. Expectations frame the amount of value we are looking to receive. Even if a pound of bananas is on sale at your local grocery store, if it is still higher than what you thought it would be, you will likely feel as though the value you are receiving is low – in other words, the value is not meeting your expectations.
Here is another example: You may be expecting a certain amount of money for your raise this year. Even if the amount of your raise is competitive in the marketplace and higher than your peers, if the amount is below your expectations, you will likely feel bad about the outcome of the situation.
When something meets your expectations, you generally feel good. When something does not meet your expectations, you generally do not feel good. Understanding what your expectations are for the outcome of a situation and understanding the expectations of others for the outcome of a situation play an important role in the perception of value creation.