The competitive global marketplace shows little mercy for organizations that are slow to raise the bar for their customers and their employees. Business value tied to external marketplace drivers tend to be strategically focused and is created by:
Month: September 2019
Why “You’re Doing a Great Job. Keep it Up!” May Be the Worst Feedback You Can Get
In my recent work with business leaders, three of them shared feedback with me that they had received from their boss as part of their annual performance appraisal process. Instead of a 30-60 minute assessment of their prior year’s performance, each of them instead heard something like “You’re doing a great job. Keep it up!” or “I loved your self-assessment. I totally agree.” And these weren’t 30-60 minute conversations. It was 5 minutes.
Ed’s Interview on Radio Entrepreneurs!
Check out Ed’s recent interview on Radio Entrepreneurs. Radio Entrepreneurs share the stories of entrepreneurs in the interest of giving more exposure to innovative and fast moving companies while creating a knowledge pool for the enrichment of the entrepreneurial community around the world.
Business Value and Internal Financial Drivers
Growing 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, it is not the type of value that will sustain an organization. Business value tied to internal financial drivers reflects a more strategic perspective that can have a positive impact. Today, your organization needs as many employees as possible focused on creating value through internal financial drivers.
Creating Individual Value
When you perform your job well, you are valuable to your organization. When you are focused primarily on creating individual value, you tend to be in a role that is more tactically-focused. And let’s face it, some roles in organizations need to be tactically focused. This focus is very valuable to the organization. Not every role has a clear line of sight to financial performance, nor should they.
How You Can Create Value in Your Organization
In order for an organization to obtain value from you and for you to raise your value in your organization, you must capitalize on either an existing way of creating value or identify new ways to create value.
Value Creation is Based on Financial Performance
In the Raise Your Visibility & Value model, value is defined as the outcome of a situation when the outcome of a situation exceeds the cost incurred by a satisfactory margin. Raising your value is defined as performing activities that connect individual contributions with business performance. To be considered a valuable employee, you must tie as many of your activities as possible to how your organization measures how well it’s performing. For most organizations, business performance is predominantly measured through financial performance. As you work to create value for your organization, you must focus your activities on your company’s financial performance.
How Your Organization Obtains Internal Value
Internally, you need to manage your organization in ways that ensure investors and customers stay interested. In order for your organization to survive for the long-term, it needs to obtain value from vendors and employees – internal value.