Posted tagged ‘Review’

Business World on Gautam Mahajan’s Book, Value Creation

April 15, 2017

Here is an excellent review on Gautam Mahajan’s book on Value Creation written by Nitin Motwani,Co- founder and CTO of Bookmyforex.com

He says:

“The funding frenzy that we recently witnessed in the Indian startup scene has caused several companies to focus on short-term objectives instead of focusing on creating sustainable value. The massive influx of funds in the recent past has caused the mind-set of many existing and aspiring entrepreneurs alike to focus on glorified yet unimportant metrics such as GMV and valuation.

Value Creation: The Definitive Guide for Business Leaders (Sage) by Gautam Mahajan reminds us that businesses today need to focus on value enhancing practices to build a long-lasting enterprise.

The defining quality of the book is that it is not restricted to a linear perspective, but covers an array of synergistic elements that collectively create value within an enterprise. Transformation, as mentioned in ‘Business Transformation Ideas for CEOs to Create Value’, is extremely important to maintain relevance with the market. Even if a particular organisation is the market leader in its domain, its resistance to change can be its downfall. Leading organisations have been replaced by relatively younger ones due to former’s resistance to change. Mahajan also advocates practices that help an enterprise to deliver optimum results, including the development of individual accountability of business leaders and managers rather than maintaining an inclination towards a ‘self-serving bias’.

The systematic progression of the book enables the reader to understand what a customer-oriented business strategy is and how it stands apart from conventional approaches. The account of the market and topic-wise depiction of examples make for a pleasurable read while also educating the reader about the most important business principles. The analysis of business processes in the book prompt ingenious ideas that the reader can exercise to increase productivity. Interesting anecdotes make the book even more engaging. One such example is that of Karl Slym, ex-MD, Tata Motors, who “got 357 ideas just by talking to TCS employees, many of whom were his customers”.

The book also stresses on shifting from an assessment based on financial assets and performance towards other more promising priority areas that include human capital, organisational capital, knowledge and information capital, etc., to develop higher value for an organisation.

The book highlights the typical behaviour and pre-dispositions that ultimately leads to value destruction and suggests that businesspersons avoid them completely. It defines the roles of various key players in the value creation process, including HR, CIOs, CFOs and explains how to leverage these valuable resources effectively. Mahajan, with his vast experience, has managed to extract the most important lessons for entrepreneurs to truly connect with their customers and to use that as a basis to derive value for the organization as whole”.

Would love your comments and help. We are happy to help others in education and executive education on courses in Value Creation.

 

Gautam Mahajan,
President, Customer Value Foundation and Inter-Link India

Founder editor, Journal of Creating Value jcv.sagepub.com
K-185 Sarai Jullena, New Delhi 110025
+91 98100 60368, 011-26831226
mahajan@customervaluefoundation.com
www.customervaluefoundation.com
http://www.interlinkindia.net

Twitter @ValueCreationJ

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) transforms 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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