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The important drivers of value - Part 2

30 January 2019 Jonathan Faurie

In the first part of this blog post, we discussed some of the issues that need to be taken into consideration when determining value.

This is the second half of the blog post by Simon Terry where other issues of vale need to be focused on.

The Four Sources of Collaboration Value

“At the beginning of my career in financial services, we had a simple mental model, derived from the Cohen Brown Sales framework, of how we delivered value to customers from the vast array of products and services that a large diversified financial services organisation offered in banking and wealth management. That model was Save Money, Make Money, Save Time or Protect Money. Reducing the complexity to these four options guided bankers and other advisors through a great deal of complexity,” says Terry.

As similar guiding structures can be used for value creation ; when we look at how collaboration can deliver value to each of the green elements of value in both economic and non-economic value, we find that value is created by four key drivers.

In simplest terms those drivers are:

-           More growth. How can we have a bigger impact? How can we help more people? Many organisations want to grow in customer relationships, in scale of operations or in other ways;

-           Better effectiveness. How can we ensure we do the most we can do? How do we do more of the right things? The literature of Lean has enriched our understanding of the value of effectiveness in economic value but effectiveness is also a concept that works for non-economic values too;

-           Faster velocity. How can we take less time to do our work and to get to our goals? Time is a valuable and expiring resource. Let’s use it as well as we can and remove the traditional work frustrations of delay and waiting; and

-           Enhanced protection.  How can we avoid risks and better manage consequences? Risk is a part of any life or organisation. We can however improve our management of risk. 

Organisational meaning

Here’s a little more detail on what these drivers each mean in organisational terms:

One of the advantages of framing adoption conversations in these terms is that it helps make the value of activities clear to users and senior leaders in simple terms.  The key benefits that they are likely to see are:

-           Individual and organisational growth;

-           Increased Individual and organisational effectiveness;

-           Improved velocity in activity, opportunity and leverage of potential, both in an employee and organisational view; and

-           An environment where individuals and the organisation have better protection against risks. 

We Create Value Because We Are Human

“If we are to make work more human and more rewarding through shared leverage of human potential in collaboration, then these key drivers should guide our projects and guide our value conversations with stakeholders. We should set our metrics and our use cases around these drivers so that we have the widest impact on value creation. If we need to increase value creation, we can come back to these drivers to search for a way forward for users and the organisation,” says Terry. 

Every organisation and every user needs to define the value of collaboration to see effective adoption. Understanding value is critical for anyone seeking to accelerate adoption of collaboration in organisations. The four drivers of value can help us to keep conversations and the actions focused on how collaboration can have its greatest impact on value.

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