Value creation through values in Business Models

Team and corporate valuesBusiness Model Innovation opens up the opportunity to not only transform the value proposition, value architecture or revenue model of an organisation, it is a chance to rethink your human value systems and build businesses that customers love, employees’ value and investors are excited about. Often, particularly in turbulent times, cultural innovation is an imperative for management.

Many books have been written about why organisations should have value systems defined and how you implement values in your core business. Still not all organisation have made this effort and those who did not always manage to live up to those set standards. Surprisingly, Alex’s business model canvas does not have values as a key building block of a business model either.

Effective organizations identify and develop a clear, concise and shared meaning of values or beliefs, priorities, and direction so that every employee understands and can contribute. Those values, once defined, impact every aspect of your organization and of the whole business model. The values must be an integral part of a description of any business model.

In my leadership career I have experienced what difference it can make if you have a leader that takes on the challenge to transform an organisation through values. When I started my work at Microsoft Australia the organisation was at first view a fairly successful subsidiary, achieving its revenue targets and outperforming other subsidiaries in some areas of the business. At a closer look the organisation had issues in areas like customer and partner satisfaction as well as employee retention. The most worrying factor was that departments were fighting each other over resources and a culture of back stabbing was quite common.

Cultural Innovation as a starting point for Business Model Transformation

Microsoft had already values defined that every employee should live up to and display. In reality many of those values were not more than letters on a web site. The company appointed a new Managing Director and with his appointment a cultural transformation journey began. He hired a Consulting firm that was specialized in building “Conscious Businesses” and our organisation transformed within 2 years in an amazingly positive way. Our leadership team, which I was part of, experienced a dramatic change in how we interacted with each other and how we connected our businesses in a much more meaningful and holistic way. Our customer satisfaction increased substantially and our employee health index (a measure of subjective employee satisfaction) became world leading within the company. Continue reading Value creation through values in Business Models