Archive for the ‘Business & Management’ category

Can Non-Owner Stakeholders Select CEOs to Create Value?

September 2, 2020

I was in a conversation with Vivek Talwar who had been head of Business Excellence and Chief Culture Officer and Chief Sustainability Officer at TATA Power. He reminded me of the importance of sustainability for our happiness and good health, and for creating a planet that could continue to sustain human beings. He said that he did not think that any CEO would drive his business strategy through sustainability. After all they are appointed by shareholders and their eye is on quarterly profits and profits. So, what the Business Roundtable is saying and what Davos has stated that the purpose of a company is to create value for all stakeholders is a far cry from ground reality. He also suggested that maybe a non-shareholder selected CEO could work better at making the stakeholder role more cogent.

It is the norm that the CEO is chosen by the shareholders and remains at their pleasure.

Should this really be the case?

If both Davos and the Business Roundtable have suggested that the purpose of a company is to engage all its stakeholders in shared and sustained value creation. In creating such value, a company serves not only its shareholders, but all its stakeholders – employees, customers, suppliers, local communities and society at large. The best way to understand and harmonize the divergent interests of all stakeholders is through a shared commitment to policies and decisions that strengthen the long-term prosperity of a company.

So, what is the role of sustainability leaders or customer leaders? Customer leaders have typically belonged to marketing and do become CEOs, but do sustainability leaders or community development leaders in a company or outside become CEOs. Why? And why not?

For that matter, few HR people become CEOs. Why?

Probably because they are functional in style and thinking and do not really create value.

Employees, of course become CEOs, but those who do from within the company, do they represent employees?

I think it is going to take time and serious thinking before any of the other stakeholders can become CEOs or select CEOs. This will require a serious effort to have a proper Purpose of the company.

Bold thinking purpose to improve the quality of life and happiness can bring great dividends. These improve the values of our company. We know from past work with power companies that over 60% of doing business with a company was their image and values. Values, we learnt from studies such as with Tata Power create value.

Since leaders can also be shareholders, should they look at creating happiness?

93% of 2000 leaders surveyed could not state why their company is in business. This means that many purpose statements do not have a proper sense of purpose. Are yours one of them?

As a leader you must have a purpose. What is a meaningful purpose you can express in terms of values, meaning ethics and morals etc. and in terms of what you want to achieve in life for yourself and your family? What will inspire those around you. Is it clean air, a happier environment, or a product with lowest costs and highest quality? The last is practical but it is your job to do so. Value Creation is going beyond your job and should be your purpose.

Do you know what your customers value, what your stakeholders value? How does your purpose reflect some of these aspirations and goals?

How can you inspire your people and family to create value and for whom and how? Granted it goes beyond the purpose but it can help you formulate and articulate purpose better.

At the very least your purpose should go beyond making money and increasing shareholder wealth.

This purpose will help you revise your vision and then your mission. Working on a strategy for each of your stakeholders will get you to a great business strategy, and re-inforce your purpose.

The purpose to create value for stakeholders makes you ally with employees, customers, society, environment and partners in learning from them and co-creating value with them. They become part of your succeeding.

Many of your employees prefer meaning to money. Should you too? Purpose improves employee participation and buy in. It creates value for employees by improving their well-being.

Helping employees with creating value for themselves and having a purpose engenders thinking about themselves and deciding what matters in life. It builds on the self, a sense of freedom and thinking about others.

Perhaps the selection process can be from a team consisting of all stakeholders, community leaders, suppliers/partners, employees, outside customers and environmentalists. This may help a polluting company change, or a company do more for the community and imbibe values in a better way, or become more customer and employee focused. Today it may not seem practical but it could become a norm in the future.

This selection process will lead to greater stakeholder participation in decision making and in choosing CEOs. This will make stakeholder strategy a reality, and change the business face around us from only making money to thinking of the future and creating happiness and a better place to live. This is Creating Value at its best.

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 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, Oct 20-21, 2020 in Paris France.
Join the Creating Value Alliance at creatingvalue.co

Value Creation and Marketing

September 2, 2020

Dear Friends, This is to share with you what Professor Philip Kotler has said about marketing and Value Creation. He has said marketing is all about Creating Value. 

Also below are two seminal conferences that I will be speaking at, and a short write up about the Value School at the Kobe University, Japan and the Creating Value School at the Japan Advanced Institute of Science and Technology.

Value Creation and Marketing

Leading marketers see modern marketing to be all about value creation. Marketing aims to meet human needs by creating value.

He goes on to say: I do not know what you thought marketing was, but in my mind, marketing is intrinsically a value-creating discipline.

Outstanding marketing companies see marketing as intrinsically involved in value creation.

You can read this free on the Journal of Creating Value, till 18 October 2020 through this link at the Journal of Creating VALUE, JCV.Sagepub.com:https://journals.sagepub.com/doi/full/10.1177/2394964320903559

Valuing Value at The IAFOR Global Innovation & Value Summit (GIVS-Tokyo), November 6, 2020

I am the keynote speaker at the International Academics Forum conference, The IAFOR Global Innovation & Value Summit (GIVS-Tokyo) in Japan in November 2020:
https://givs-tokyo.iafor.org/speakers/

You must attend.

World Marketing Summit: November 6 & 7, 2020

I am one of 80 world leaders speaking at the E-World Marketing Summit and the only one from India. You can get more details and register from the link below.
http://www.worldmarketingsummitgroup.org/ewms

Value School at Kobe University and the Creating Value School at the Japan Advanced Institute of Science and Technology, JAIST

Kobe University Value School can be seen at https://creatingvalue.co/jp/value-school-university-of-kobe. It will start in October 2020.

JAIST has just announced their Creating Value School at their Tokyo campus.

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 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, Oct 20-21, 2020 in Paris France.
Join the Creating Value Alliance at creatingvalue.co

Does Planned Obsolescence Destroy Value?

September 2, 2020

I wrote in my article on the new normal that Phil Kotler suggested that marketing focus on the more useful and the more necessary than on selling more. In the new normal, I suggested planned obsolescence should be examined, and perhaps more repairs and re-use. Why should a cell phone last two years and cost so much? Product obsolescence destroys value for consumers and the environment and creates value for manufacturers.

The smartphone manufacturers stop supporting two year old models. Planning includes poor quality components or software that can fail in 2 years, not providing upgrades; and worse still making hardware changes to attract switching like a better camera. My camera works well on my Oneplus 5 and my friends say it is great. But now I am tempted by the camera of the Oneplus 8. Software failure happens on printers also. So apart from contrived durability, we also have prevention of repairs, both value destroyers.

Other examples are:

Light bulb manufacturers spent years to get light bulbs to fail after 1000 hours.

Having irreplaceable batteries that die after a year or so.

Not being able to re-fill an ink cartridge, or showing a cartridge needs replacement triggered by a microchip or a light sensor forcing premature replacement.

College text books, nylon stockings, fashion items, video games are all planned to become replaceable.

Durability is another word used for planned obsolescence…durability of toys, of clothes.

Another example is luxury items that take advantage of customer desire and affordability strategized by planned obsolescence. Customers will opt to pay a substantial premium for products that often have finer craftsmanship, greater durability, and resale value. That takes us to another extreme: last forever and pay a premium.

But what happens to the luxury buyer, when the manufacturer starts to put the product and the name in the mass market. It makes the luxury buyer want to buy something else which is exclusive! This is perceived obsolescence!

The auto industry also practices phased obsolescence, as you all know, coming up with new models.

Tesla, by updating software is reducing obsolescence.

Coca-Cola is an example of keeping to the same model (despite new Coke)

Lastly, product obsolescence is wasteful, it increases landfill, and it uses more resources. Post Covid can we have more re-use and create value. It goes against what Kotler is suggesting (in the Journal of Creating Value), sell more useful and more necessary and NOT MORE.

Thus buy durable brands in the first place. Add extended warranties that cover products should they fail. Buy products where spares such as batteries are easily available. Look for retailers who repair and recycle old products safely. Buy used products that will last.

France has a law against planned obsolescence and went after iPhone and Apple, who admitted software slowed down older models! They also said older batteries slowed down the phones.

Can new manufacturers or existing one disrupt this practice by coming up with durable long lasting products and create more 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
http://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, Oct 20-21, 2020 in Paris France.
Join the Creating Value Alliance at creatingvalue.co

Fear: Value Creator or Value Destroyer for Leaders

September 2, 2020

Fear is palpable, it is almost noticeable, and it is contagious.

Fear is an emotion we feel when we perceive danger or a threat. Fear can cause physiological changes and can lead to behavioural changes, such as fleeing, hiding, or freezing from perceived traumatic events…. An irrational fear becomes a phobia.

Fear starts with a perception of a threat or of harm, real or imagined. This threat impacts our physical, emotional or psychological well-being. Some activity or physical thing that activates fear in most of us. We can learn to become afraid or not afraid of nearly anything.

Unfortunately, fear is used by parents and teachers to make students study…saying study or you will fail. What will happen to you when you grow up?

Many people use fear as a motivator or to bully. Police fear, officialdom fear, fear of one’s boss or of losing a job are examples. There are many examples you can think of. Fear of failure is one major problem.

If fear is used gently it can be a value creator, because you can see things rationally and the risk. If it goes to an extreme it becomes a phobia and a value destroyer.

Fear of failure is a big value destroyer as it prevents creativity and working on new ideas in business and in the home life. It freezes action. One must remember that there are three ways of failing:

When we stop improving or we quit or we do not even try. Also making the mistake of equating failure to a person not an event. Failure happens for a reason and not for you.

You must learn from failure and from value destruction you will eventually reach value creation. Remember, failure is temporary and at a point in time. It is a learning experience.

Your ego gets bruised from a failure, you do not.

Leaders must remember failure is an integral part of business and their portfolio. So they must manage fear.

Also remember, lack of fear can result in reckless (I don’t care, or I will win big) behaviour. Gamblers display this. Kids can often be fearless. So can some mercenaries and soldiers. This is to be avoided. Unfortunately, evaluation of risk and of fear is so subjective and somewhat controlled by our sub-conscious and not rational thinking. This is to be feared!

Remember international politics thrives on fear, honour and interest, and can also be the precursor to war.

When does fear add value? Being fearless can make you risk-agnostic, and not look at things properly and rationally. This is a value destroyer.

Thus a leader must imbibe the value adding of fear and avoid the value destruction of fear, which translates into no decision or agonising; or not making the right decision because of fear.

Fear also impacts your people. Generally the executives are more risk averse than top people. Feeling the fear of the top man can make people even more risk averse, sometimes tantamounting to not taking decisions or sitting on things.

As a leader, as a parent, as a teacher, use fear cautiously as a motivating tool. Do not let fear get the better of you and lead you into inaction. Fear of failure must be substituted by joy of success for a leader.

Then you start creating value, new things, and new ideas!

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 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, Oct 20-21, 2020 in Paris France.
Join the Creating Value Alliance at creatingvalue.co

Creating Value and Value Starvation… a Customer Service Mind-Set

September 2, 2020

Today costs are going up, prices down, so you have to cut costs while giving satisfaction. Do things that the customers want. The cost of mistakes and annoying the customer is significant. It takes money and your time to correct problems you started for the customer. 

In Star Wars, they mentioned the force is in us. We must use our force for the good of the organisation and its customers. 

What does this mean? It means if we align with our team and the customer, we will be winners. Otherwise we will always have half solutions, band aid solutions and we will struggle. 

This talk is about you and bringing the force together to impact you, your company and your customers and to create value. Do watch this video about selling on value not price: 

Please click the image below otherwise video will not be shown

Did this video change your thinking? You also must change your attitude. You have to keep asking how do I attract the customer, how do I keep him, how do I service him, and what can I start to do differently?

From the video you learnt:

Not to say no,

Do not turn your customer away,

Do not annoy your customer.

Create value for him.

I used the word value again.

What is value? How do you create this and for whom?

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.

Worth is benefits and cost, and cost is not price alone and includes effort, price justification or value proposition.
 
Value waiting to happen is problems looking for value solutions! 
 
So ask:
How do I take ownership of solutions?
How do I align to Value?
 
Don’t follow protocol and process and procedures and work around them.
 
On right side, you will see the example of the catalyst and shipping over the weekend.
 
Do not be rigid about your rules, such as I cannot ship on Saturday. It is my catch up day.

Another example happened at Taj President in Mumbai. I left the hotel around 3pm to catch a flight to Delhi. Half way, I realised I had left my laptop charger in the room. In a panic, I called the hotel and spoke to the duty manager. Can you check if my charger is still in room 217?
 
He said if we find it, we can send it to you by courier and it will cost you. I said fine, but do you have the charger. To cut a long story short, I never found out if they had the charger. I hung up and redialled again, and managed to talk to the General Manager, who put me on hold for a minute and said, yes, we have your charger and I will arrange to get it to your house in Delhi within 4 hours. Which they did and got a loyal customer!
 
Communications: Does the customer comprehend what you are saying? (If you understand, he may not. So telling someone in Singapore, these are the RBI rules. How is he supposed to know who RBI is?)

You have to develop a mind set to find solutions and create value. You must bond as a team and become a team.

Avoid Value starvation.

WHAT IS VALUE STARVATION?
Things that irritate and frustrate customers.
Example: One Friday afternoon the senior executives of a large catalyst company had left for an off-site retreat. At 6pm the plant was empty except for the security guard and a shipping clerk, getting ready to go home. Suddenly there was a call from ABC Chemical Company which the guard passed on to the shipping clerk.
 
The ABC Chemical person stated: We forgot to order a catalyst and we will have to shut down production tomorrow and I will be in deep trouble. Can you ship me a catalyst right away?
 
The shipping clerk knew the company, and knew the catalyst was in stock. But, he said, I cannot ship without a purchase order, and there is no one I can talk to.
The ABC company person kept pleading. I will probably lose my job. Please help.
 
So the shipping clerk decides to ship the catalyst and it arrived at ABC Chemical Company on Saturday.
 
On Monday at 11am the Managing Director of ABC Company called the MD of the Catalyst Company. Thanks so much he said, you were super to us over the weekend. The MD of the catalyst company had no idea but said our pleasure.
 
After hanging up, he called his Marketing Director who also had no clue, but he promised to find out. And he heard the story of Friday evening.
 
So they decided to reprimand the shipping clerk and also gave him a bonus of 500 dollars.
 
What would you have done? Would you have shipped without a purchase order?
For example, I stood in line for breakfast at a fast food restaurant in a mall. When my turn came the girl behind the counter said I cannot serve breakfast, it is past 10.30 am. It was 10.31 am. I said I was in line. She said but it is past 10.30a.m. So I left and went next door, who served me breakfast. 

Isn’t this rigidity of rules, causing us to lose customers. 

Learn not to say no
Learn not to be rigid
Learn to communicate
Learn to work in a team
Learn to find solutions and create value
And AVOID VALUE STARVATION

To do this you must know the 6A’s Awareness, four of which are discussed here: Attitude (Just doing my job), Anticipation, and Agility (the other two are Ability and Ambidextrousness). 

Be Aware of things around you, notice. Be Aware of customers and their needs and well-being. 

Anticipate problems and customer needs
Be Agile, move fast, and be willing to change
Have a positive and great Attitude
Remove obstacles. An example is given below 

A king put some rocks on a road, and people had to go around it. Most people avoided the rocks. One vegetable vendor took his vegetables off his head and put them on the road and started moving the rocks to one side. The king noticed and gave him a prize for removing obstacles. 

Be aware of obstacles, have the attitude to remove them, use a team if you have to, be agile and fast. AVOID VALUE STARVATION. 

Remember you make the difference. You are important. 

People notice something different and notice you are trying to be helpful and useful. 

Will you make a difference today?

The force is in us. Use the force in the organisation for customers AND 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
http://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, Oct 20-21, 2020 in Paris France.
Join the Creating Value Alliance at creatingvalue.co

1 day to go…3rd Global Conference on Creating Value, June 2-3, 2020

June 1, 2020

Dear Friend,

One day left to join us for a free zoom conference with leaders like Shyam Saran, former Foreign Secretary of India, Peter Varghese, former Foreign Secretary of Australia, Riel Miller of UNICEF and a Future thought leader, Prof. Yan Xeutong of China running the World Peace Forum, Marti Subrahmanyam of NYU and a distinguished Financial thinker, Jim Spohrer of IBM, Akhil Gupta, Vice Chairman of India’s largest telecom, Raman Roy an IT and outsourcing leader, Russ Klein, CEO of American Marketing Association, Prof. Katsuhiko Kokubu of the University of Kobe, Japan, and Director of the Value School. Other speakers include a DHL segment President, a food service Vice Chairman etc. see Brochure

Creating Value is essentially doing good and improving the well-being of people, environment, business and society. The Creating Value Alliance has been conducting conferences and seminars over the years and this conference is one in a series, with many more to come, supported by the Journal of Creating Value. The original dates were for a physical session in Paris which will now be on Oct 20-21. This invite is for the web conference on June 2-3, 2020 whose format is given below:

1 hour Keynote including questions and answers, 1 hour Creative Panel (including Q&A) and 1 hour for presented papers by scholars. You can join any one or all the sessions in Europe, Americas, and Asia for free. The links will be provided to those who register because zoom wants hacking to be prevented, and all zoom conferences have a password now.

Europe, Africa, Middle-East is on June 2, 2020 at 10.00am CET 

Add to Calendar : Google || Apple Ical || Outlook || Outlook.com

 

South, Central & North America is on June 2 at 11.30am EDT

Add to Calendar : Google || Apple Ical || Outlook || Outlook.com

 

Asia, Australia & Oceania is on June 3, 10.30am IST, 2pm JST

Add to Calendar : Google || Apple Ical || Outlook || Outlook.com

 

Each session will have different keynote speakers and panellists (see Brochure), and we will have a variety of topics.

In an age of runaway capitalism, globalisation and connectivity, the corona virus crisis has tempered these. The debate of what is short term and what is long term is on, and even more importantly, what will happen then.

This conference seeks to look at a desirable future, a desirable society and business mix; Sustainability and prosperity and re-define prosperity. The conference also examines what may happen and what we may be driven to and why they could be entirely different.

It is our hope that people, businesses, governments, and society will look at the future from what creates the most value in the long term and balance that by what value could be destroyed by the path we choose.

View on LinkedIn and see more in the Brochure

Do join us for the webinar. Register here

Important note: On June 1st, Zoom will switch to a different encryption method (AES256 GCB).
If your Zoom desktop application / mobile app is not up to date, you will not be able to join any Zoom sessions after May 31st.
You can download and install the latest version of Zoom fromhttps://zoom.us/download

 

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 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, Oct 20-21, 2020 in Paris France and virtual June 2-3, 2020
Join the Creating Value Alliance at creatingvalue.co

Customer Value Foundation

Dear Friend,

Join us for a free zoom conference with leaders like Shyam Saran, former Foreign Secretary of India, Peter Varghese, former Foreign Secretary of Australia, Riel Miller of UNICEF and a Future thought leader, Prof. Yan Xeutong of China running the World Peace Forum, Marti Subrahmanyam of NYU and a distinguished Financial thinker, Jim Spohrer of IBM, Akhil Gupta, Vice Chairman of India’s largest telecom, Raman Roy an IT and outsourcing leader, Russ Klein, CEO of American Marketing Association, Prof. Katsuhiko Kokubu of the University of Kobe, Japan, and Director of the Value School. Other speakers include a DHL segment President, a food service Vice Chairman etc. see Brochure

Creating Value is essentially doing good and improving the well-being of people, environment, business and society. The Creating Value Alliance has been conducting conferences and seminars over the years and this conference is one in a series, with many more…

View original post 472 more words

3rd Global Conference on Creating Value, June 2-3, 2020

May 30, 2020

Dear Friend,

Join us for a free zoom conference with leaders like Shyam Saran, former Foreign Secretary of India, Peter Varghese, former Foreign Secretary of Australia, Riel Miller of UNICEF and a Future thought leader, Prof. Yan Xeutong of China running the World Peace Forum, Marti Subrahmanyam of NYU and a distinguished Financial thinker, Jim Spohrer of IBM, Akhil Gupta, Vice Chairman of India’s largest telecom, Raman Roy an IT and outsourcing leader, Russ Klein, CEO of American Marketing Association, Prof. Katsuhiko Kokubu of the University of Kobe, Japan, and Director of the Value School. Other speakers include a DHL segment President, a food service Vice Chairman etc. see Brochure

Creating Value is essentially doing good and improving the well-being of people, environment, business and society. The Creating Value Alliance has been conducting conferences and seminars over the years and this conference is one in a series, with many more to come, supported by the Journal of Creating Value. The original dates were for a physical session in Paris which will now be on Oct 20-21. This invite is for the web conference on June 2-3, 2020 whose format is given below:

1 hour Keynote including questions and answers, 1 hour Creative Panel (including Q&A) and 1 hour for presented papers by scholars. You can join any one or all the sessions in Europe, Americas, and Asia for free. The links will be provided to those who register because zoom wants hacking to be prevented, and all zoom conferences have a password now.

Europe, Africa, Middle-East is on June 2, 2020 at 10.00am CET 

Add to Calendar : Google || Apple Ical || Outlook || Outlook.com

 

South, Central & North America is on June 2 at 11.30am EDT

Add to Calendar : Google || Apple Ical || Outlook || Outlook.com

 

Asia, Australia & Oceania is on June 3, 10.30am IST, 2pm JST

Add to Calendar : Google || Apple Ical || Outlook || Outlook.com

 

Each session will have different keynote speakers and panellists (see Brochure), and we will have a variety of topics.

In an age of runaway capitalism, globalisation and connectivity, the corona virus crisis has tempered these. The debate of what is short term and what is long term is on, and even more importantly, what will happen then.

This conference seeks to look at a desirable future, a desirable society and business mix; Sustainability and prosperity and re-define prosperity. The conference also examines what may happen and what we may be driven to and why they could be entirely different.

It is our hope that people, businesses, governments, and society will look at the future from what creates the most value in the long term and balance that by what value could be destroyed by the path we choose.

View on LinkedIn and see more in the Brochure

Do join us for the webinar. Register here

Important note: On June 1st, Zoom will switch to a different encryption method (AES256 GCB).
If your Zoom desktop application / mobile app is not up to date, you will not be able to join any Zoom sessions after May 31st.
You can download and install the latest version of Zoom fromhttps://zoom.us/download

 

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, Oct 20-21, 2020 in Paris France and virtual June 2-3, 2020
Join the Creating Value Alliance at creatingvalue.co

3rd Global Conference on Creating Value, June 2-3, 2020

May 18, 2020

Dear Friends,

Creating Value is essentially doing good and improving the well-being of people, environment, business and society. The Creating Value Alliance has been conducting conferences and seminars over the years and this conference is one in a series, with many more to come, supported by the Journal of Creating Value. The original dates were for a physical session in Paris which will now be on Oct 20-21. This invite is for the web conference on June 2-3, 2020 whose format is given below:

1 hour Keynote including questions and answers, 1 hour Creative Panel (including Q&A) and 1 hour for presented papers by scholars.

Europe is on June 2, 2020 at 10.00am CET
Americas is on June 2 at 11.30am EDT
Asia is on June 3, 10.30am IST, 2pm JST

Each session will have different keynote speakers and panellists (see Brochure), and we will have a variety of topics.

Page1

In an age of runaway capitalism, globalisation and connectivity, the corona virus crisis has tempered these. The debate of what is short term and what is long term is on, and even more importantly, what will happen then.

This conference seeks to look at a desirable future, a desirable society and business mix; Sustainability and prosperity and re-define prosperity. The conference also examines what may happen and what we may be driven to and why they could be entirely different.

It is our hope that people, businesses, governments, and society will look at the future from what creates the most value in the long term and balance that by what value could be destroyed by the path we choose.

Join us, and leaders like Shyam Saran, former Foreign Secretary of India, Peter Varghese, former Foreign Secretary of Australia, Riel Miller of UNICEF and a Future thought leader, Prof.Yan Xeutong of China running the World peace Fprum, Marti Subrahmanyam of NYU and a distinguished Financial thinker, Jim Spohrer of IBM, Akhil Gupta, Vice Chairman of India’s largest telecom, Raman Roy an IT and outsourcing leader, Russ Klein, CEO of American Marketing Association, Prof. Katsuhiko Kokubu of the University of Kobe, Japan, and Director of the Value School. Other speakers include a DHL segment President, a food service Vice Chairman etc.

Page3

Do join us for the webinar. Register here

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, Oct 20-21, 2020 in Paris France
Join the Creating Value Alliance at creatingvalue.co

How the Pure Profit Motive Destroys Value

March 31, 2020

For years we have been discussing Value destruction. A prime example of this is given in Francesca Mari’s brilliant article on the cover of New York Times magazine called “A $60 Billion Housing Grab by Wall Street”. You can see it on:

https://www.nytimes.com/2020/03/04/magazine/wall-street-landlords.html

“Hundreds of thousands of single-family homes are now in the hands of giant companies — squeezing renters for revenue and putting the American dream even further out of reach,” the article says.

Francesca describes a potential first home buyer. “When Ellingwood began speaking to lenders, he realized he could easily get a loan, even two; this was the height of the bubble, when mortgage brokers were keen to generate mortgages, even risky ones, because the debt was being bundled together, securitized and spun into a dizzying array of bonds for a hefty profit. The house was $840,000. He put down $15,000 and sank the rest of his savings into a $250,000 bedroom addition and kitchen remodel, reasoning that this would increase the home’s value.”

For a variety of reasons including a divorce, he was unable to make payments on the mortgage and had to sell the house. The buyer turned out to be a finance company (almost like a private equity company) who found this a lucrative market to invest in and squeeze higher profits from people who had meagre means.

Francesca writes, “Before 2010, institutional landlords didn’t exist in the single-family-rental market; now there are 25 to 30 of them, according to Amherst Capital, a real estate investment firm. From 2007 to 2011, 4.7 million households lost homes to foreclosure, and a million more to short sale. Private-equity firms developed new ways to secure credit, enabling them to leverage their equity and acquire an astonishing number of homes.”

You have to read the article to see the disregard for the customer in preference to make more money. The convenience of the company comes before the convenience of the customer. And sadly, this happens to a bunch of customers who mostly can barely afford to pay the rent and are not able to do any major (and often minor) repairs. The story is one of greed and making the purpose of a company to generate more money, and not worry about creating value for the stakeholder (the customer, the employees, partners and society).

Thus a society meant to be one where people can get affordable housing could not exist for all because of such greed.

The private equity model that Francesca talks about, in general prioritizes short-term earnings and harvesting as much money as possible even if it means destroying value rather than building a solid company that creates values and results in long-term earnings.

All this could be a repeat of the 2008 financial crisis, which damaged the economy and those who were marginal home owners. Her article is a wake-up call for companies and governments to create value for people in the marginal category who have no choice but to rent.

This greed is how the economy collapsed in 2008. And this is being repeated. The problem emanates from a business strategy that tells the companies they can make more money by playing out the strategy. There is no customer strategy to ensure the customer is focused on and his wellbeing is important.

One solution is building and following a Customer Strategy.

For a long time, I have been advocating to CEOs that the starting point of a good business strategy is a customer strategy. The customer strategy and the shareholder strategy should then be used to build a business strategy/business tactics. And in today’s age both the business and the customer strategy should be adaptive to the changing future.

To many, customer strategy can appear to be redundant. But it isn’t. It is crucial if organizations want to change and become truly customer-centric. A survey of 400 CEOs showed that 33% felt that the number one issue in preventing customer-centricity was a lack of a clear customer strategy. Twenty-eight percent felt it was internal silos. Customer strategy helps break silos and creates teamwork. This happens because CXOs are part of creating the strategy. They, therefore, are part of the customer strategy. They assign customer roles for themselves and their departments. They agree to lead certain customer-related strategies. They become part of the customer-focused team. And as KPIs include customer parameters, the customer strategy becomes a practical road map to build customer value and create value for the customer.

The customer strategy should become an integral part of the business or corporate strategy led by the CEO. It will help him think about how to change the organizational structure to become customeric and drive the business with the customer in the center. It will help the CEO implement the strategy and think through moving from selling to the customer to helping him buy to becoming an extension of the customer by building an inseparable and symbiotic relationship with him. Much of this has also become more complex and intense in the fast moving world and the customer focus is much more necessary for success and adaptability.

The company needs an inseparable and symbiotic relationship with the customer. What tasks will make this happen? To be successful, the company must be dynamic, understand its customers, and exercise its right to select the customers it wishes to serve. Often this is based on customer profitability (which includes margins, cost to serve, etc.). Sometimes companies want customers who can recommend them or become brand ambassadors. But having selected the customers, companies must serve them also.

We helped several companies create customer strategies. There was a palpable change in these companies in terms of customer thinking and focus. Much value was created and many customer-centric and customer-friendly programs were implemented. This resulted in reduced complaints, increased efficiency, higher sales, and higher business excellence scores (one company in the Tata Group went from being among the lowest in business excellence to the best in the group). Of course, proper implementation of the customer strategy is a necessity to get the benefits of the customer strategy.

Strategy must build competitive advantage for the firm by creating compelling Value for Customers. Articulating why Customers will buy requires managers to examine strategy from the Customer’s point of view. It encourages them to ask how the firm’s activities deliver superior Value to chosen Customers. The firm must choose the set of activities that serve target Customers better than competitors, and shun other segments that demand incompatible activities. This is what a customer strategy will do for a company.

Many people ask me the difference between a customer strategy and a business strategy. They cannot see the difference since the business strategy is based on the market place. The customer strategy looks at the customer, his needs, and the customer opportunity. The difference can be seen from what happened in the recent meltdown of the financial markets, starting with the mortgage market crash.

The typical mortgage customer was looking for a product that would keep him safe if the prices of homes went down or interest rates went up. The mortgage company should pay attention to the customer’s liquidity and ability to pay. A customer strategy would have revealed the customer’s needs and also suggested what products needed to be created to make the mortgagee safer if prices of homes went down or interest rates went up.

The market opportunity that arose was to bundle mortgages and sell them to a bigger financial institution, thereby getting money back to give out more mortgages. These new mortgages were then bundled and re-sold from a bigger financial institution to an even larger one. The buyer of these bundled mortgages bundled more of them and sold them on to the next larger financial company. The mortgagee was no longer the real concern of the original mortgager. The paper was held somewhere else.

As you can see, the business strategy of bundling mortgages was a great idea to make money.

No one was concerned about the quality of the mortgagee and the loan. They were too busy fulfilling their business strategy of bundling mortgages and offloading them to the next person.

And what was the result? The mortgage market collapsed, because everyone took their eyes off the customer and did not have a clear-cut customer strategy, though they had a business (market-based) strategy. Often the customer was not worthy of a mortgage.
To end, we have people like iKnowtion Senior Partner, Don Ryan and SunTrust Banks SVP and Director of Client Information, Greg Holzwarth, who are saying: Customers are changing. The recent financial crisis left many consumers soured on the state of the banking industry. They are now more empowered to demand better experiences and won’t hesitate to switch banks if they aren’t happy. In response, many banks are working to rebuild relationships by learning to speak their customers’ language, to act in the customers’ interests, and improve their reputation and financial well-being in the process.

Customer strategy, specifically data intelligence, is at the forefront of one bank’s effort to be customer-centric:

  • How can I stand out from competitors in a crowded and volatile industry?
  • Who are customers? Who are my target customers?
  • What do my customers value so I can provide them the value they seek?
  • Are we creating more value than competition? If yes, then where and how? How do we improve?
  • Should I concentrate on customer acquisition or focus on share of wallet?
  • What can I promise customers and how do I keep promises?
  • What additional value can I create for customers, and those that serve them?
  • How do I find actionable insights from internal and external data?
  • How do I organize to focus on customers?
  • How do I implement customer programs
  • Who leads specific programs?
  • What will the future be? How will our customers change, and how should we?

Customer strategy also allocates customer tasks to various departments, breaking silos and making all departments have a responsibility for the customer. This builds teamwork, builds the customer priority and focus in all departments. Key performance areas can then be customer-based and incentivized. This is an extremely important reason for the customer strategy being built.

The customer strategy can then be a precursor to the business strategy.

You can see none of this was part of the corporate thinking in Francesca’s article. And the state that was to monitor the wellbeing of the citizens, abrogated their responsibility to greedy landlord companies.

Companies and governments must have a customer strategy to take care of their constituents. All this might sound like wishful thinking by companies, but customers are in their long term interest and they should avoid short term money making schemes.

Do you agree this is value destruction, and not value creation.

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
Join the Creating Value Alliance at creatingvalue.co

Creating Value out of Value Destruction by COVID-19

March 18, 2020

All of us are suffering from the impact and potential future impact of COVID-19 Corona Virus or COVID-19. Such disruptive events happen often. In public life, it is like a world war, or the financial meltdown in 2008. In private life, loss of a job can be disruptive. Someone’s death may be disruptive for the survivors. For companies, such as Boeing the 737 Max tragedy was disruptive. They all destroyed value.

What are the lessons we can learn:

1. Often these disruptive occurrences can be destroyers of value, but they are also an opportunity to create value. How do we do this? First and foremost our thinking has to change from bemoaning the disruptive event to seeing how we can convert it to our advantage, without impacting our values (that is doing bad things like charging more for masks or hand sanitizers)

2. We will all have more leisure time and less hectic activity. Is this a wakeup sign that the rat race may not be necessary? A slower economic growth may not be a bad thing. Can we re-invent ourselves and our lives. Can we find more time for each other? Can we become more caring? Can we find time for each other?

Will this lead to a happier, more balanced society?

3. Our idea of management and of work has to change. Why is it necessary for office workers to concentrate in an office? For better communication? Efficiency? Our ability to manage and ensure people are working? Are on time? Are disciplined, are following the rules?

Changing this thinking, may bring the same level of efficiency with lower stress. Commute time will be reduced. Infrastructure stress on roads, on mass transport crowds will reduce. People will learn to do things remotely and probably become more self-reliant.

I am not suggesting this will come with no pain or downside, but this has its positives. Value can be created from Value destruction, by changing our thinking and releasing our creativity.

4. Internet payment and services will increase, because people would prefer less personal contact.

5. The idea of globalisation modified by glocalisation may not be the path for the future. Globalisation is a more for suppliers and manufacturers. By and large the consumers are local, although they are made to feel global because they buy goods made globally, China, India Mexico etc. Does it matter if a local product gave the same value?

How do we make that happen?
Maybe our concept of manufacturing of scale is outmoded. This requires huge manufacturing facilities and even larger distribution and supply chains.
What are the products we can make through distributed manufacturing? We may have to use technology such as 3D printing or innovative manufacturing and assembly techniques. An example is machines that can manufacture furniture on demand. They are programmed to manufacture different furniture, a table, a chair and select the raw materials. Inventory and distribution costs are reduced. Scale is no longer important.
Ask yourself, what I can do differently for the future. What is my purpose or what is the purpose of my company. How can I succeed in the future by creating value, and turning value destruction into an opportunity?

This is our global opportunity to re-invent ourselves and move from Value destruction to Value creation.

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
Join the Creating Value Alliance at creatingvalue.co