Why Value Creation is more Important than Value Extraction?

Today’s MBA’s and managers are trained to extract value. Most executives work on administering, improving efficiency, making sure things are done effectively, managing people to get the best out of them. How many are there to Create long lasting Value? How many are willing to change the rules of the game? How many are willing to ask why are we doing these things? Is there a better way?

You can extract value to a limited extent. Unless you create more value you cannot extract more value.

MBA’s have to be taught to create value. That in fact Value Creation is the top task of an executive. Not just Value Extraction.

So we need Master’s in Value Creation and Master’s in Value Management and transform the company to create Value for Employees, Customers, Partners, Distribution Channel and thereby for the Shareholder.

Below is the organisation chart of the company of the future, taken from my book, Total Customer Value Management: Transforming Business Thinking. Everyone has a Value creation role. 





I will be chairing 3rd “Maximizing Customer Loyalty & Profitability” Telecom Conference organized by Telecom IQ (A Division of IQPC), in Germany on May, 21-22, 2013

Contact Customer Value Foundationto transform yourself to Create Value.

Call any Time

Mob: (+91) 9971288580

Gautam Mahajan, President-Customer Value Foundation
M: +91 9810060368
Tel: 11-26831226, Fax: 11-26929055
email: mahajan@customervaluefoundation.com
website: http://www.customervaluefoundation.com

Customer Value foundation (CVF) helps companies to Create Value and profit by Creating Value for the customers, employee and for each person working with the companies.

Total Customer Value Management (TCVM) transform the entire company to focus on Creating Value for the customer by aligning each person’s role in Creating Customer Value and getting shareholder wealth and Value.


Explore posts in the same categories: Business & Management

3 Comments on “Why Value Creation is more Important than Value Extraction?”

  1. […] and companies? I have written about this inCreating Value is the Key Role of An Executive andWhy Value Creation is more Important than Value Extraction? And Do your Employees Feel […]

  2. It is nice to know your slide show on MBAs and need for value creation.

    I am sorry to say that today’s MBAs ( as you said..) are not even value extractors.. I always refer them as value eroders !

    I m a professor at NITIE Mumbai.. an MBA institute.

    My point is like this..

    An MBA spend > Rs. 20 lakhs in two years of MBA , and DO NOT earn even a single ruppee.. does it mean a student is extracting any value out of MBA.? It is utter nonsense.. What an MBA earn when s/he completes one’s MBA is not the issue. A real MBA need to earn when value is spend in real time.

    Dr. Mandi .. Professor of Dhanda..
    Faculty Adviser, NITIE Center for Student Enterprises, NCSE, NITIE, Viharlake, Mumbai

  3. A great stimulation to change and to move foreward! I would only suggest for your organigram to put the ‘return’ side of the CFO directly under the CEO’s responsibilities: he must be the first watcher of segment shares, etc.

    Dr Hans-Udo Wenzel
    President and Deputy Chairman

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