Value Creation

Value Creation and Business Success by Paul OMalley from The Systems Thinker, Vol. 9, No. 2 Copyright © 1998 Pegasus Communications, Inc. (www.pegasuscom.com). All rights reserved. No part of this obligate may be reproduced or transmitted in whatever form or by any means, electronic or mechanical, including photocopying and recording, without written permission from Pegasus Communications, Inc. If you wish to distribute copies of this article, please progress to our Permissions Department at 781-398-9700 or permissions@pegasuscom.com. The most successful organizations gain that the purpose of any business is to create assess for customers, employees, and investors, and that the interests of these triplet groups are inextricably linked. Therefore, sustainable pass judgment fannynot be created for bingle group unless it is created for all of them. The first focus should be on creating value for the customer, but this cannot be achieved unless the right employees are selected, developed, and rewarded, and unless investors discover consistently attractive returns. What do we mean by value creation? For the customer, it entails making products and providing services that customers find consistently useful.

In todays economy, such value creation is based typically on product and process innovation and on sagaciousness unique customer needs with ever-increasing speed and precision. But companies can innovate and deliver outstanding service only if they tiptoe the commitment, energy, and imagination of their employees. Value must therefore be created for those employees in order to motivate and enable them. Value for employees includes being tempered respectfully and being involved in decision-making. Employees also value meaningful work; excellent compensation opportunities; and continued education and development. Creating value for investors means delivering consistently high returns on their capital. This in the main requires both strong revenue growth and attractive profit... If you extremity to get a full essay, order it on our website: Orderessay

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