What is your added value?

Many people and organizations fail to understand that value is defined by the receiver, not by the sender:

• Your customers define the value of your products, not you.
• Your employees define the value of your new reward system, not you.
• Your fans define the value of your brand, not you.

We all know this. Why then is it so difficult to act accordingly and create real external value? 

The key reason is that most organizations are internally rather than externally focused.

The consequence is that people spend more time on internal discussions and turf battles instead of asking, “What is in it for our customers?”

Look at these examples:

• Quality is not what you produce but what your customers perceive. Many companies pay too much for a full-fledged quality management system while the customers might expect more innovative products.
• Too many business processes and policies are defined and documented without added value for customers or employees. Justify the value or stop this. 
• The hiring of high-potential employees fails because the candidates are sent through a race of interviews and assessments to comply with the newest “450° inside-out” HR-methodology nonsense instead of getting quick, sound decisions from responsible managers who desperately need good people.

How to strengthen your external focus:

1. As a leader, live by example. Reduce internal meetings without clear strategic or operational objectives. Instead, talk to your customers and your employees.
2. Ask your managers regularly, “What is the value of your activities to our customers?” Make them think externally.
3. Have a strong vision and customer-focused strategic goals that are reflected in the personal objectives of your employees.

Start at least one of these activities now—and don’t set up an internal committee to plan the steps!

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This post is from our Friday noon memo #86. Interested in regular updates? Sign up here.
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