How to Create Value

Create ValueCreating and building value for your business is something you want to bring up high on your agenda and at an early stage of your business! Of course, but…“generating value is one of the most misunderstood tools of innovation” according to Fast Company. Why is that?

It may well be that it’s a misunderstood concept. So how do we define value creation? It’s aiming towards best practices with an ongoing focus on continuous improvement. Value creation is something you create both internally and externally with a heavy focus on customer services.

We also know that value creation directly correlates with the future valuation of the business. The external customer focus, something that a business owner relates to, is a necessity if you want to stay ahead of competition. However, the internal focus on value creation often falls short to the detriment of the future worth of the business.
So again, why is not more emphasis put into this part of running a business? In my experience, the CEO or business owner fails to make the time to work ON the business on a regular basis. Another reason may be that you don’t have enough resources. Maybe you are managing instead of leading and are running out of time. We also know, just like with any new technology or software, you have to invest in an upfront effort to plan and execute accordingly.

Improving organizational capabilities is an intangible aspect of value building. This activity examines its own leadership, talent, accountability, collaboration, speed, mindset and learning. It is a longer term view and effort. Getting your ducks lined up just before you are ready to sell, or transfer the business over to a family member, is going to be too late. Value creation happens over time and is continuous.

Let me share with you a big picture view and a starting point in how to address the Value Creation Process and how you might begin the process. Start with these three disciplines:

1) Operational Excellence
a. Efficiency
b. Streamline Operations
c. Supply Chain Management

2) Product & Services Oriented Leadership
a. Strong marketing and innovation
b. Dynamic Markets
c. Development – short time to market with high margins

3) Customer Intimacy
a. Exceed Customer Expectations
b. Tailor Products and Services
c. Deliver on time

Behind the three disciplines listed above are no doubt a lot of details. Let’s assume you have focused on customer intimacy (3) and it is well established. If not, create a benchmark or baseline around these activities and set a new standard so you remain competitive. Operational excellence (1) and leadership (2) is where many companies fall short. The art of business is to balance both external and internal value creation over time. Planning these activities is essential and will take some time and effort, however, no matter what your next stage, it will be worth your while.

I know as the leader of your company your demands are never ending. Begin your process one step at a time, just like writing a book, one chapter at a time. Begin to identify the low hanging fruit, something that is easy to fix and has the most positive outcome. Maybe it is shortening the number of phone rings for a receptionists. Achievable with immediate positive outcome for you, the employees as well as the client or vendor.

If you find your business experiencing a reduction in market share or have difficulty in keeping costs down and you are doing it all alone, consider an outside group of advisors by establishing an Advisory Board. More private companies are investing in creating an Advisory Board to help them with their strategic intent and guidance in how to plan and implement such goals.

I hope this is a good first step for you. Begin to work ON the business for at least 4 hours a week (in one block) and things will begin to happen. I will be speaking on the topic of Value Creation and Finding the Right Advisors in the next two weeks. You are more than welcome to attend.

My next blog will be on “Working Horizontally” discussing how to aim for organizational collaboration addressing the first discipline of this blog. If you want to receive these blogs directly, please click the button on Follow Rudi’s Blog.

Make comments on this blog or get in touch with me with any ideas or thoughts. You can find my contact information on my new website Stop-Compromising.

With gratitude, Rudi

Planning Growth: The CEO Challenge 2

NSS Workshop Series for CEOs and Business Owners

CEO Workshops are part of our continuing series of educational forums where CEOs participate in peer-to-peer exchanges of ideas and thought leadership. We focus on the CEOs role as the center of the business. Prof. Advisors may attend with a CEO.

Planning Growth: The CEO Challenge

Wed | March 13, 2013 | 10:30am – 12:30pm with a light lunch

Place: WilmerHale | 850 Winter Street | Waltham, MA

Join a group of CEOs addressing strengths, opportunities and threats for the upcoming 12 months while reflecting on the past 6 months. Each CEO, teamed up with a CFO, chooses a challenge they are faced with and a course of action.

They then present the solution to the advisory board that will examine, question and probe the team from different angles.  The audience will add questions and comments and vote at the end whether or not to approve the course of action then will vote the solution a go or no-go.

Our theme is around the Strategic Challenge CEOs face:

  • Strategic Market Assessment
  • Organization & Talent Management
  • Growth Strategies from planning to delivery
  • Infrastructure build-out to achieve scalability

CEOs:

Laurie Halloran CEO of Halloran Consulting Group

Paresh Shah, CEO of  Mindleaf, Inc

Moderator:

Carol Kunik, CEO Coach, Vistage International will focus on the overall planned growth and how to realistically achieve it.

Advisory Board Members:

Joshua Fox, Partner at WilmerHale will stress the importance of looking at acquisitions for growth.

Bonni DiMatteo, President of Atlantic Consultants will focus on company culture and communications.

Bill Schmidt, Managing Director at Next Stage Solutions will consider the cost/benefit of the solution.

Planning Growth: The CEO Challenge 1

NSS Workshop Series for CEOs and Business Owners

CEO Workshops are part of our continuing series of educational forums where CEOs participate in peer-to-peer exchanges of ideas and thought leadership. We focus on the CEOs role as the center of the business. Professional Advisors may attend with a CEO.

Planning Growth: The CEO Challenge

When: Thursday | January 10| 10:30am – 12:30pm | Light lunch served

Host: WilmerHale, 850 Winter Street, Waltham, MA

REGISTER TODAY!

Join a group of CEOs addressing strengths, opportunities and threats for the upcoming 12 months while reflecting on the past 6 months. Each CEO, teamed up with a CFO, chooses a challenge they are faced with and a course of action. They then present the solution to the advisory board that will examine, question and probe the team from different angles. The audience will add questions and comments and vote at the end whether or not to approve the course of action then will vote the solution a go or no-go.

Our theme is around the Strategic Challenge CEOs face:

  • Strategic Market Assessment
  • Organization & Talent Management
  • Growth Strategies from planning to delivery
  • Infrastructure build-out to achieve scalability

CEOs:

Annette Tonti, CEO of MoFuse, Inc

Linda Moraski, CEO of PeopleServe, Inc

Moderator:

Neal Yanofsky, Strategic Partner at New Delta Partners will focus on the overall planned growth and how to realistically achieve it.

Advisory Board Members:

Michael LaCascia, Partner at WilmerHale will stress the importance of looking at acquisitions for growth.

Laurie Kirk, Founder of The Board Forum will focus on company culture and communications.

Ben Weller, Managing Director at Next Stage Solutions will consider the cost/benefit of the solution.

Does the glass ceiling exist or do women create it?

A provocative topic written by my friend Karil Reibold, President and CEO  of  Whaleback Managed Systems. She was asked to write a blog on women in business  for CRN magazine, for which she was named one of the top 100 women of the channel. She chose to write about whether the glass ceiling exists or not and sent the question to a group of women CEOs. She asked us to share our opinions and used some of our quotes.

Enjoy the article in CRN magazine

Rudi Scheiber-Kurtz

Videos from NSS Workshop The People Factor: Leadership Development and Succession Planning

This is NSS’ second year of providing topic specific CEO workshops. This workshop was sold out at 45 attendees and we are gearing up for our next one on April 11, 2012. Save the date now for a debate on how to grow your company in this economy. We will have two CEO debate teams on Growth, one on the Acquisition side and the other on the Organic side. This is an opportunity for CEOs to come and hear what works for some and not for others and if you are on the fence in how to grow your business, don’t miss this debate!

In order to capture the discussions from our last workshop, we are posting all nine videos so that we can share them with more CEOs and other thought leaders.

We take pride in our selection of expert panelists and moderators who are leaders in their respective fields. Our thanks again to the workshop panelists:
Moderator:
Bonni DiMatteo, President of Atlantic Consultants, Inc

Panelists:
William Bachman, COO of Bingham McCutchen LLP
Lyn Kaplan, Business Performance Advisor at Insperity, Inc
Lisa Sasso, Executive Coach at Medical Development Partners, LLC
Larry Stybel, President of Stybel & Peabody Associates

The videos cover the following discussion pieces:
Video 1 – Leadership Retention
Video 2 – Developing the Right Culture
Video 3 – The Affect of a New Culture at Bingham
Video 4 – Structures and Processes of Leadership
Video 5 – What Leaders need to Develop today to Excel 15 years from Now
Video 6 – What are the Biggest Mistakes made in terms of Talent Development?
Video 7 – How do you get People in the Room with 100 Job Interviews?
Video 8 – Key Elements to Effective Succession Planning
Video 9 – How to Avoid Conflict between Citizenship and Compensation

If you would like to have a conversation with an NSS Team, please do not hesitate to call us at 617-449-7728 today to set up a time to meet.