Posted tagged ‘Employee’

Chief Value Creation Officer (CVCO)

August 25, 2014

I have been writing about Value Creation. I was asked to define the Chief Value Creation Officer by my readers. I found companies that have Chief Value Officers, trying to improve the Value of the company or the Value to the Investor. The typical way is to decrease costs, and increase market share thorough product proliferation or pushing into the marketplace through price, and through the distribution system. Very few look further into the companies, to see if the company is adding value to the employee and externally to see the value created for the customer (rather than looking at the customer as a sale). A CVCO is more than a Chief value officer.

Keep in mind that the company is dependent on three major stakeholders: Investors, employees and Customers. All three are necessary for the establishment and wellbeing of the company.

People will argue that we do not need one more C level officer. Others will maintain that value creation is the CEO’s job or everyone’s job. Why we need a CVCO is because a business and cultural transformation is necessary to become the best and to create the most value for the investor by creating value for employees and customers, and by making value creation the main role of an executive.

This is why I have written up what a CVCO should do. Please feel free to suggest changes and improvements.

  1. Show executives that Value Creation is the main role of an executive.
    1. This means going beyond just doing your job, or being an efficiency expert or just a good administrator
    2. Becoming aware of Value Creation and Value Destruction
    3. Educate employees and give ideas on Value Creation
    4. Share the Value Creation done by one person/department with others
  2. Build a Value Creation culture
  3. Ensure there is a Chief Employee Value Creator, and create value for the employee
    1. Measure the Employee Value Added
    2. Incorporate Value addition for employees
    3. The role of HR should change to create value
  4. Increase the Value Creation for customers
    1. Is the Chief Customer Officer effective?
    2. Build a Customer strategy
    3. Measure Customer Value added
    4. Increase value to the Customer
    5. Break organisational silos
    6. Ensure Bill of Rights is honoured
    7. Incorporate Customer Circles and a Continuous Customer Improvement Program
    8. Improve awareness and proactiveness of front line people
  5. Ensure Value is being created for partners, supply, delivery chain and unions
    1. Involve all departments
  6. Look at Value Creation for society, and for sustainability
  7. Measure the Value created for investors and Value created for employees and Customers. Ensure you focus on loyalty increase leading to market share and higher profits. Understand the cost savings by becoming more efficient for the Customer and because you make fewer mistakes
  8. Ensure reporting of financial measures, employee value added and Customer Value Added (including employee assets, customer assets) with quarterly results and to Board of Directors

Ideally, the Chief Value Creation Officer should be on the Board of Directors because he cuts across all functions of the companies, and is charged with improving their working and effectiveness, and in impacting the company culture.

Your comments are welcome!

Call at (+91) 7838333300

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 (Total CVM) 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.

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Employee Journey

August 8, 2014

The employee journey is a working life-long journey. The customer journey is sporadic within a company. The employee journey cannot be viewed as just a series of various journeys within a company. The journey must be viewed in totality by Companies.

In this article the principal focus is the employee journey and his journey (interaction with, working for) with the customer. What other factors influence the employee journey? What is an employee journey? Why is it important?

First and foremost, the employee is an asset, and a people asset that can appreciate or depreciate during the journey. The brand equity of the employee is seen during the journey by colleagues, peers, bosses and customers, and this brand equity impacts the brand and performance of the company.

Second, only a value added employee can contribute (add value) to the company and add value to the customer.  Companies can add or destroy value to the employee through this journey.

So an understanding of the employee journey is crucial to performance and health of the company. Too many people define this journey narrowly as being interviewed, hired, performance appraised, motivated, skills developed, promoted, retired (leaving). Others think it is just the interaction with HR, the employee and his boss and his external contacts. Some parts of the journey are given below:

  1. The family and social journey
  2. The journey for self-improvement
  3. The journey to help customer: Sometimes one way, you cannot contact customer or customer cannot contact you
  4. The journey to help customer navigate the company: an internal journey
  5. The journey with colleagues and bosses, 24/7 availability through cell phone and email
  6. The journey to break silos and frustration
  7. The politics journey, be honest or loyal
  8. Employee touch points, be it accounting, bosses, HR

If you really want to have employees perform, then the wellbeing of the employee is important. His wellbeing is impacted by his problems outside of work. The Japanese had recognised this and had tried to help the employee as a family member. I am not suggesting we do this, but we have to recognise this.

How do we do this? By understanding the employee’s self-esteem that is influenced by his journey inside or outside the company. If the employee has poor self-esteem, his awareness, pro-activeness and performance is affected. So we have to look at the employee journey differently.

The self-esteem can be impacted by expectations from the company, starting with expectations of his 24/7 availability by the company (your time belongs to us)… that is why companies are suggesting no email or work to be done outside the office and office hours.

There is yet another journey that the employee makes, of self-improvement. Many companies can help and do help.

The next journey is the journey in interacting with the customer externally and internally in helping him navigate the company. Very often his journey is thwarted by silos, by rules, by regulations and thou shalt or shall not do this. So he prefers to not take the journey in its entirety and leaves the customer stranded. He needs help in this journey. The silos, hierarchy, rules can cause a frustration during the journey.

Then is the journey with his colleagues and his bosses, and in office politics. Should he appear honest or loyal?

And then there is the journey which is impacted by company touch points, by having multiple people to contact, rather than have one single point of contact…  Accounting for expense reimbursement, boss for time off, HR for education, motivation (bosses?)

A much wider employee mapping is necessary to know his needs and to make his journey well worth it.

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Your comments are welcome!

Call at (+91) 7838333300

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 (Total CVM) 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.