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Creating Value Based On Our Values

Thursday 23 February, 2006

Many organisations have a list of values, often highlighted in fancy frames on foyer walls. It seems only a small percentage of workplaces have shared definitions of their values and even less have determined the behaviours that can be measured in order to ensure the day to day living of values.

This is a point of distinction for great organisations and will continue to be in the future. All organisations have a primary reason for existing; to create value. Regardless of our products or services, our success is to do with how much value we create in the minds of our clients or customers. This is perceived value (PV). It is why people buy from us or not.

Over the course of this year and with the help of many of my clients I have developed a formula for creating high perceived value, IV + EV x PF = PV.

  • IV stands for Inherent Value.

    The following about our products and services make up inherent value:

    • comfort
    • consistency
    • convenience
    • ease of use
    • fast / quick
    • price problem remover
    • quality
    • reliability
    • safety / security

    These are the basic reasons people buy from us, or not.

Inherent Value without EV however and we probably have a struggling organisation or are about to go broke.

  • EV is Emotional Value.

    The following about our products and services make up emotional value:

    • belonging
    • enjoyment
    • escape from boredom
    • feeling good
    • fun
    • happiness
    • stimulation
    • stress relief
    • surprise, and
    • wonder

    People are more than likely to buy from us, or not, depending on how they see these factors in our products and services.

But even these may not be enough!

  • PF stands for Pride Factor.

    The following about our products and services make up pride factor:

    • exclusivity
    • fame / fortune
    • fitness / health
    • leisure
    • love
    • quality of life
    • recognition / reward
    • self importance

    Unless our products and services include perceived connections to these factors people are probably going somewhere other than our place.

How your clients or customers perceive the value you create will be a major factor in your success whether you own an organisation or work in one.

Your willingness to create great inherent value, emotional value and address the pride factor will be tested. It is my belief that passing the test has a lot to do with the values that you live by, of which trust is perhaps the greatest.

How would you define trust and your other values and would your definition be shared with your workmates? Could you come up with a list of behaviours everyone would need to live by to ensure the definitions are true? How could you measure these on a day to day basis?


Buy Ian Berry's Audio Seminar CD from the Resource Centre:

What Real Leaders Do And Fake Ones Don't 


Author Credits

Ian Berry is based in Brisbane, Australia. Ian is a leading authority in helping leaders at all levels and business owners / directors achieve more of what you want and less of what you don’t through finding the right balance for you between the art of leadership and the science of management and harmony between your life and work. Visit Ian's web site: www.ianberry.au.com
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