The Value Formula

Value-based thinking and behavior are essential for navigating global market uncertainty.

The graphic below illustrates the basic components of value in a simple mathematical expression. The formula visualizes value-based thinking and working.

Alignment

Alignment supports transparent communication of purpose and ambitions in an organization. Directional understanding through the goal-strategy-outcomes (GSO) approach aligns resources to a shared vision.

Flow

Flow facilitates efficient movement of products and services to deliver customer value. Value streams prioritize value progression by eliminating non-value adding elements.

Customers

Customers are crucial in understanding market preferences and trends, allowing an organization to outpace its competition.

Adaptive Leaders

Adaptive leaders establish a vision and framework for alignment and progress. They set clear boundaries while granting front-line units autonomy to achieve goals as they see fit.

Value

Value is the key component in this formula. Customers, shareholders, employees, and society want an organization that positively impacts and creates value in their lives.