The head-spinning advances in technology, endless bottom-line financial pressures, and growing networks of global economies described earlier demand a need for superior performance and sustainable efficiencies. Organizations aspire to motivate their employees to be better, more productive, and more engaged. Leaders seek ways to create a common language behind which organizational goals and activities can align. What can replace the void that is being created by the slow demise of performance management systems?
The answer is value creation. The language being used to define success is slowly and quietly shifting from performance to value. If you listen, you can hear “value creation” everywhere. I’ve been listening. I hear recruiters talk about the importance of creating value. As one recruiter said at a panel I attended, “Don’t tell me what you did. Tell me the value you created for your employer. Tell me how you made a difference.”
How does value exist within your organization? Has a conversation about value begun? Does your organization realize it has overinvested in performance management and underinvested in value creation? Whatever your situation, value is the new corporate currency. It is the vehicle upon which the exchange between individual contributions and organizational rewards is occurring.
Measuring the value that you create for your organization is gaining your boss’s attention. Why? Value requires a foundation of good performance, ties your performance to business objectives and financial metrics, and creates a new way to motivate and align you in ways that are more rewarding for everyone involved.