Like an adolescent transitioning to adulthood, growing and evolving organizations require value to be more tangible, and the contribution of business value by employees to be broader. While individual value is critically important to an organization’s performance and culture, it is not the type of value that will sustain an organization in its marketplace. Business value tied to internal financial drivers reflects a more strategic perspective that can have a positive impact on your organization. In today’s competitive marketplaces, your organization needs as many employees as possible focused on creating value through internal financial drivers.
As you work to raise your value, start with identifying the financial performance drivers that are important to your organization. Internal financial drivers vary from organization to organization and may include revenue, sales, expenses, gross margin, gross profit, key performance indicators, key financial ratios, and profit margin.
If you do not know what these internal financial drivers are, there are a number of ways to identify them:
- Partner with a colleague to brainstorm.
- Listen to the areas your leaders discuss during your next all employee meeting.
- As you work to raise your visibility with your boss or key leaders at least two levels above you, ask them to identify the key financial drivers for your organization.
- Read your organization’s annual report and listen in on its next investor call.
The best way to know what financial drivers are important to your organization is to look at what is reported to the public and investors.
When you have a better understanding of the financial drivers that are important to your organization, you are in a better position to identify ways to impact them. If, after exploring ways to impact internal financial drivers, you find that there is no logical way to do so, you may be in a role better suited to create individual value. Do not make any assumptions – value can be created in a variety of ways and you will not know the value you can create until you conduct this exploration.
Ed’s new book, Raise Your Visibility & Value: Uncover the Lost Art of Connecting on the Job is now available on Amazon and Barnes & Noble. Please check it out and share the word!