All organizations operating in complex environments are impacted by external and internal forces. Externally, your organization needs to raise capital in order to invest in its growth and generate revenue to cover its operating expenses with vendors and employees. In order for your organization to obtain capital or generate revenue, it needs to create value for investors and customers.
- Investors. Individual or institutional investors seek organizations that can create for themselves, or their clients, value in areas such as return on equity and earnings per share. These investors buy stock in your organization (i.e., a mutual fund), loan money to your organization (i.e., a bank), or invest in your organization (i.e., venture capitalist). Regardless of their function, these investors work hard to ensure value in their investment.
- Customers. Today’s competitive marketplace demands that individuals and companies find the best price for the best product and service they seek. Whether it is a sophisticated consumer seeking value for clothing he is buying or a purchasing agent finding the best value in office products for her organization, buyers work to ensure value in their purchases. When customers find the value in the goods and services they are purchasing, they give your organization money, generating revenue.