Author Archive

Creating Value and 2020

December 29, 2019

Dear Friends,

I am reaching out to my contacts and friends to thank them for their support to the Creating Value movement. If you are not a member of the Customer Value Alliance do so now at www.CreatingValue.co for free

Also, I wanted to wish you a very Happy 2020 and great times ahead.

The Creating Value movement is doing well, with conferences in 2020 in Boston, Aaalborg (Denmark), Amsterdam, Kobe, Geneva, Paris, Szczecin Poland and Osaka.

A Creating Value Centre is starting in Aalborg, Denmark and a Value School at the Kobe University in Japan.

Do let me know if we can do some programs together.

 

Best,

Gautam Mahajan, President, Customer Value Foundation

Founder Editor, Journal of Creating Value jcv.sagepub.com

New Delhi 110065 +91 98100 60368

mahajan@customervaluefoundation.com

www.customervaluefoundation.com

Twitter @ValueCreationJ

Blogs: https://customervaluefoundation.wordpress.com/

Author of Value Creation, Total Customer Value Management, Customer Value Investment, How Creating Customer Value Makes you a Great Executive, The Value Imperative, Value Dominant Logic

Come to the Third Global Conference on Creating Value, June 2-3, 2020 in Paris France

Join the Creating Value Alliance at creatingvalue.co

Watering Wet Plants

November 29, 2019
Friends,
I take great pleasure in enclosing an article by my friend Cyrus Bagwadia, former MD of Essel Propack. It is very interesting and discusses empowerment to understand and do your job well.
Best,
Gautam
Watering wet Plants-1
Watering wet Plants-2
Watering wet Plants-3
Best,

Gautam Mahajan, President, Customer Value Foundation
Founder Editor, Journal of Creating Value jcv.sagepub.com
New Delhi 110065 +91 98100 60368
mahajan@customervaluefoundation.com
www.customervaluefoundation.com
Twitter @ValueCreationJ
Blogs: https://customervaluefoundation.wordpress.com/
Author of Value Creation, Total Customer Value Management, Customer Value Investment, How Creating Customer Value Makes you a Great Executive, The Value Imperative, Value Dominant Logic
Come to the Third Global Conference on Creating Value, June 2-3, 2020 in Paris France
Join the Creating Value Alliance at creatingvalue.co

Creating Value Events

November 9, 2019
Friends,
I have great pleasure in sharing the upcoming events for the next year starting October 2019.
 Do come to these events and suggest others.
Best,
Gautam
Creating Value Announcement
Creating Value Announcement 2

Best,

Gautam Mahajan, President, Customer Value Foundation
Founder Editor, Journal of Creating Value jcv.sagepub.com
New Delhi 110065 +91 98100 60368
mahajan@customervaluefoundation.com
http://www.customervaluefoundation.com
Twitter @ValueCreationJ
Blogs: https://customervaluefoundation.wordpress.com/
Author of Value Creation, Total Customer Value Management, Customer Value Investment, How Creating Customer Value Makes you a Great Executive, The Value Imperative, Value Dominant Logic
Come to the Third Global Conference on Creating Value, June 2-3, 2020 in Paris France
Join the Creating Value Alliance at creatingvalue.co

Exciting News!

October 25, 2019

Value School in Kobe University Announced

There was exciting news for the Creating Value community when Kobe University’s Vice President, Katsuhiko Kokubu announced on October 15, 2019 that Kobe University will start a Value School from April 2020 and will be fully operational from 2022. Value will be a common platform throughout the university and provide a certification of KOBE UNIVERSITY VALUE CREATOR for students. The V School will develop educational program for businessperson and construct a collaboration network with business.

The Head of School will be Professor Katsuhiko Kokubu, Vice President of Kobe University and Professor of Finance. The Associate Heads will be Dean and Professor Hisashi Tamaki, Graduate School of System Information; and Professor Kenji Kutsuna, Graduate School of Science, Technology, Innovation and Entrepreneurship.

They will be aided by Associate Professor Hiroki Tsuruta, Office for Academic and Industrial Innovation and by Assistant Professor Keiko Gion, Graduate School of Engineering.

Kobe University defines Value as the sense of well-being, which is what we define Value as: doing good and improving the well-being and worth of people, institutes, society and companies.

Value School’s Challenge for the Future is:

  • Create a new academic and educational field on #ValueCreation
  • Construct strong international networks on #ValueCreation and entrepreneurship such as with the Journal of Creating Value, UC San Diego, Cornell University, University of Sheffield, etc.
  • Through #CreatingValues, solve social issues, and then develop local and international economy and society

When will you become part of the #CreatingValue community? Join www.CreatingValue.co

Happy to answer any questions.

 

Best,

Gautam Mahajan,  President, Customer Value Foundation

Founder Editor, Journal of Creating Value jcv.sagepub.com

New Delhi 110065 +91 98100 60368
mahajan@customervaluefoundation.com

www.customervaluefoundation.com

Twitter @ValueCreationJ

Blogs: https://customervaluefoundation.wordpress.com/

Author of Value CreationTotal Customer Value ManagementCustomer Value InvestmentHow Creating Customer Value Makes you a Great Executive,   The Value Imperative,   Value Dominant  Logic

Come to the Third Global Conference on Creating Value, June 2-3, 2020 in Paris France

Join the Creating Value Alliance at creatingvalue.co

What is Value Creation and the new Purpose of a Company?

October 2, 2019

My friend, Dr. Eddie Pinto, who is one of the best medical doctors I know, knowledgeable, up-to-date, caring and concerned about patients wrote to me:

#Valuecreation has been happening for 15 years in medicine. It screws the doctor and patient and limits care, makes it more expensive and enriches only the large university groups and insurance companies. We need to thank the globalist Obama!

https://www.kevinmd.com/blog/2019/03/how-big-medicine-is-hurting-patients-and-putting-small-practices-out-of-business.html

I wrote back:

Eddie, #ValueCreation is a good thing. But whom are we #creatingvalue for….if for Big Medicine, Insurers and suppliers, then we are in the old world of value creation, which means increasing shareholder wealth. Our definition of Value creation is creating value for the customer, the employee, and the independent doctor, maybe all doctors and for society. There is a big difference, and we can make a difference if we follow value creation in the way mentioned above, that is focusing on customers, employees and society.

Recently the Business Roundtable, the association of the largest companies in the US signed on to the new purpose of a company: To create value for all stakeholders, starting with customers, employees, partners, and society. 181 leaders from Amazon, Google, Microsoft, among others signed off on this purpose, outdating the 1997 purpose Eddie was bemoaning (creating shareholder wealth). The number 1 purpose is #creatingcustomervalue!

There are four real dangers in preventing this from happening:

  1. Companies and their leaders are just mouthing something nice. Why was this not done before?
  2. There is so much pressure from the stock market and the shareholders, forcing quarterly results to be more important than long-term wealth, and not understanding that creating value for all stakeholders creates greater shareholder wealth.
  3. They have the mistaken view that creating value for other stakeholders is expensive and costly. Doing the right things, and preventing poor information and communication is value starvation and should be avoided (Take for example, most companies allow one-way communication, the company can communicate with you. But try communicating with someone of responsibility in the company. Even his name is a guarded secret). We have great ways of teaching how to create value, from a customer strategy to customer centric circles, from measuring Customer value and understanding why customers buy to using existing resources in the company like quality control to focus on creating value.
  4. The biggest danger is those consultants who will jump onto the value creation bandwagon without understanding the meaning of value creation. Watch out for these people.

This is what caused Eddie to worry about #valuecreation.

Today in the Sunday Times of India, Namrata Singh wrote about the Purpose+Profit: Capitalism is getting a Makeover. This is one of the first articles in India after the Business Roundtable declaration of August 19, 2019 on the new purpose of the company. The article talks about Conscious Capitalism, but does not mention two giants, Raj Sisodia and John Mackey the former owner of Whole Foods. Conscious capitalism started over a decade ago.

Nick Gillespie in Capitalism in 2018 wrote in his article called ‘John Mackey and Conscious Capitalism Have Won the Battle of Ideas With Everyone but Libertarians’:

“Thirteen years ago in the pages of Reason, John Mackey, co-founder and CEO of Whole Foods Market, debated Milton Friedman, the Nobel-winning economist famous for declaring that “the social responsibility of business is to increase its profits,” and T.J. Rodgers, the CEO of Cypress Semiconductor who was (rightly!) famous for publicly telling buttinsky activist-investor nuns that they had no understanding of how to create jobs (the Catholic schoolboy in me still thanks Rodgers every night during my evening prayers).”

Mackey argued an early version of a business philosophy that he would later codify in a 2013 book, Conscious Capitalism, and a non-profit organization of the same name. Contrary to Freidman’s Ahab-like focus on shareholder value, Mackey said,

“The enlightened corporation should try to create value for all of its constituencies. From an investor’s perspective, the purpose of the business is to maximize profits. But that is not the purpose for other stakeholders—for customers, employees, suppliers, and the community. Each of those groups will define the purpose of the business in terms of its own needs and desires, and each perspective is valid and legitimate.”

#ValueCreation can only be understood when one sees the definition:

#ValueCreation is executing pro-active, conscious, inspired or imaginative and even normal actions that increase the overall good and well-being, and the worth of ideas, goods, services, people or institutions including society, and all stakeholders (like employees, customers, partners, shareholders and society), and value waiting to happen. This leads to better gains or benefits for Customers and all stakeholders, including enhanced returns on investment.

That is why our parents teach us to be good kids and to do good. But this is soon overtaken by the goal of making a living, of being successful.

The role of an executive is to create Value, and not just be a good administrator and an efficiency expert. The executive has to go beyond being a functional manager to being a Value Creator, and avoid destroying Value. To teach this role the MBA program has to shift from bringing out good efficiency experts and administrators to bringing out value creators; to shift from an MBA to Masters of #ValueCreation.

This is the start of making the Purpose of a company really to create value.

 

Best,

Gautam Mahajan, President, Customer Value Foundation
Founder Editor, Journal of Creating Value jcv.sagepub.com
New Delhi 110065 +91 98100 60368
mahajan@customervaluefoundation.com
www.customervaluefoundation.com
Twitter @ValueCreationJ
Blogs: https://customervaluefoundation.wordpress.com/
Author of Value CreationTotal Customer Value ManagementCustomer Value InvestmentHow Creating Customer Value Makes you a Great ExecutiveThe Value ImperativeValue Dominant Logic
Come to the Third Global Conference on Creating Value, June 2-3, 2020 in Paris France and The International Conference on Creating Value for the Future of AI and Society, Kobe, Japan, October 15-17, 2019
Join the Creating Value Alliance at creatingvalue.co

Creating Value the Number 1 Purpose of a Company (181 of the Largest US Companies)

August 23, 2019

For the last few years Customer Value Foundation (www.CustomerValueFoundation.com) and Creating Value Alliance (www.creatingvalue.co) have been spearheading a campaign that the role of a company and an executive is to create value for customers, employees, partners, society and investors on a long-term basis.

It is gratifying that on 19th August, 2019, 181 CEO members of Business Roundtable, including Amazon’s Jeff Bezos; American Airlines’ Doug Parker; Apple’s Tim Cook; Bank of America’s Brian Moynihan; Coca-Cola’s James Quincey; Eaton’s Craig Arnold; Marriott’s Arne Sorenson; Lockheed Martin’s Marillyn Hewson; Morgan Stanley’s James Gorman; Procter & Gamble’s David Taylor; UPS’s David Abney; and Walmart’s Doug McMillon re-wrote the purpose of a company after the previous one written in 1997.

On top was Delivering Value for Customers (Customer Value), and to all stakeholders.

Delivering value to our customers: We will further the tradition of American companies leading the way in meeting or exceeding customer expectations.

Investing in our employees: This starts with compensating them fairly and providing important benefits. It also includes supporting them through training and education that help develop new skills for a rapidly changing world. We foster diversity and inclusion, dignity, and respect.

Dealing fairly and ethically with our suppliers: We are dedicated to serving as good partners to the other companies, large and small, that help us meet our missions.

Supporting the communities in which we work: We respect the people in our communities and protect the environment by embracing sustainable practices across our businesses.

Generating long-term value for shareholders: [They] provide the capital that allows companies to invest, grow, and innovate. We are committed to transparency and effective engagement with shareholders.

Each of our stake­holders is essential. We commit to deliver value to all of them, for the future success of our companies, our communities, and our country.

We have built up a large membership of people from around the world, who believe this to be true. This includes Philip Kotler, Russ Klein, CEO of American Marketing Association, Jag Sheth of Emory, Christian Gronroos of Hanken, Finland, V. Kumar, Editor of Journal of Marketing, Tanya Dubash, Godrej, R. Mukundan, Tatas, Harry Oosterhuis of Ing Bank etc.

The new purpose of a company that the Business Roundtable members have signed states delivery of value as the number one purpose of a corporation.

Our definition of Value (by our value community) is:

Value Creation Definition: Value Creation is executing pro-active, conscious, inspired or imaginative and even normal actions that increase the overall good and well-being, and the worth of ideas, goods, services, people or institutions including society, and all stakeholders (like employees, customers, partners, shareholders and society), and value waiting to happen.

That is why our parents teach us to be good kids and to do good. But this is soon overtaken by the goal of making a living, of being successful.

The prime role of an executive is to create value.

This gives us an opportunity to give CEOs a road map on how they can get their companies to move forward and transforming their companies for Customer Value. This is exactly what Philip Crosby was able to sell, when the quality movement started. This is all possible by tweaking our work process slightly. We have done this for many companies.

How can we get some CEOs together or individually and discuss Customer Value, Value Creation, Customer Strategy, Measuring Customer Value (no one else does, except us, and our associates), Customer Centric Circles, Employee Value, Societal Value and the futuristic Value Waiting to Happen, and getting the entire company to pitch in (Total Customer Value Management, also title of one of my books)?

 

Gautam Mahajan

9810060368

Gautam Mahajan is one of the world leaders on Customer Value and Value Creation. He is Founder Editor of the Journal of Creating Value, www.jcv.sagepub.com, now finishing 5 years, and the Mentor of the Creating Value Alliance, creatingvalue.co, and Chair or co-chair the Global Conferences on Creating Value, the next being in Paris in June 2020, and The International Conference on Creating Value for the Future of AI and Society at Kobe Japan in October, 2019, and a conference in Boston at Northeastern on How businesses create or destroy value for society in March 2020.

A Creating Value Centre for Business and Society will be inaugurated in Denmark in February 2020. University of Kobe is starting a Value School to be inaugurated in April 2020.

A list of his books are here. Value CreationTotal Customer Value ManagementCustomer Value InvestmentHow Creating Customer Value Makes you a Great ExecutiveThe Value ImperativeValue Dominant Logic

Do join the Creating Value Alliance, creatingvalue.co

The International Conference on Creating Value for the Future of AI and Society

July 4, 2019

The International Conference on Creating Value for the Future of AI and Society whose flyer is down below. More information can be got from CREATINGVALUE.CO

Flyer 1 pageICCV for AI

2ND GLOBAL CONFERENCE ON CREATING VALUE A HUGE SUCCESS IN NEW YORK IN MAY 2019

Conference was held in New York in May 2019 and was a huge success. Many senior academics and business CEOs said this was the best conference they ever attended. Fordham University newsletter said:

“The Marketing Area organized and hosted the Second Global Conference on Creating Value at Lincoln Center on May 14-15. The conference co-chaired by Sertan Kabadayi and Gautam Mahajan, the President of Customer Value Foundation, had 158 participants from 18 countries. There were 16 Plenary Speakers including 3 Distinguished Professors like Christian Gronroos, Raj Sisodia, Philip Kotler, 8 CEOs, one of which was Russ Klein, the CEO of the American Marketing Association(AMA), and 48 Academic Paper Presentations. The keynote speaker of the conference was Philip Kotler” (pictured here)

Philp Cotler Keynote speaker

 

Best,
Gautam Mahajan,
President, Customer Value Foundation and Inter-Link India
Founder Editor, Journal of Creating Value jcv.sagepub.com
New Delhi 110065 +91 98100 60368
mahajan@customervaluefoundation.com
www.customervaluefoundation.com
Twitter @ValueCreationJ Blogs: https://customervaluefoundation.wordpress.com/
Author of Value CreationTotal Customer Value ManagementCustomer Value InvestmentHow Creating Customer Value Makes you a Great ExecutiveThe Value ImperativeValue Dominant Logic
Come to the ​Second​ Global Conference on Creating Value, May ​2019 ​ in New York
Join the Creating Value Alliance at creatingvalue.co