Understanding of the company creates real value for organizations
Top management must focus all its efforts on creating value to the organization, but not short-term value, but have the ability to create real long-term value. This process should be ongoing and long term. Of course, that this difficult task is not only top management but also must be a commitment of all employees of the organization.
If employees, not management, I mean, they feel they are a real contribution to the organization, they feel a greater level of commitment and motivation, which achieved an increase in the productivity of these. There are countless examples of organizations within the Fortune 500, to create value in the short term, taking into account only the shareholders have generated a lot of damage and destroyed value to organizations, rather than create it. The concept of value creation should not be a monetary or financial terms! This concept should be applied much more broadly.
Productivity is essential to compete in the competitive and dynamic market today. Productivity, both employees of the Organizations that are in constant research and anticipation of changes and problems.
For all the foregoing that I introduce the concept of “Value Driven Management” (VDM). VDM is a theory which focuses on creating real value in the long term, based on eight factors which always are considered individually and entirely to the point that any decision or action will be taken by the organization. These eight factors are:
• Cultures external to the organization;
• Organizational culture itself;
• Values of employees;
• Values of suppliers;
• Values of customers;
• Values of others;
• Values of competition;
• Values of the owners of the organization.
Once these factors are considered, as described above, both individually and integral can be sure that the decisions and actions will be implemented to maximize value creation in the long run, not only in monetary terms but in a broader sense. On the other hand VDM emphasizes the creation of knowledge and incentives, as might be the case for training and development, so that there is a genuine motivation of employees.
Wal-Mart is an excellent example of an organization that is constantly in search of ways to create value for it. This organization is a fundamental principle which is true at every level of the organization, this is respect for the individual. Respect for the individual not only refers to its employees but its customers, suppliers and partners.
Another clear example that Wal-Mart understands and applies the theory of VDM is the tool “Vision 360″ used. Before a decision or action is implemented, this is fully tested to see what could be all the consequences of these.
Finally, another example is that Wal-Mart takes into account the views of all the people who interact with the organization, which leads to innovation and value creation in the long run.
It is vital for organizations to be proactive and refuse to accept any external pressure to employ any decision that does not generate short-term and real value to the organization. VDM in order to use existing organizations must:
• The total commitment of top management;
• The real empowerment of employees;
• That the levels of compensation are adequate;
• There should be restructured so that employees can use the concepts of VDM;
• The organization should focus on the correct selection of staff;
• The organization must complete the emphasis to be generated in the creation of value;
• Finally, a key element in VDM is the continuing education of employees and management.
“In the course of the average lifetime, the only activity consume more time Than That a persons job or career is sleep” (Gardiner and Pohlman, pg. 168, 2000). How are you are the phrases that the management of each organization should understand and remember every day.
In this way they would realize the importance of generating adequate levels of motivation, creating the context for innovation and total employee commitment to the organization to not only think and act in a short-term, but is generated and create real value in the future thinking of the organization.
Finally, remember VDM is a theory that focuses on creating real value to the organization over the long term. It is a multidimensional and integrated theory focuses on the eight factors mentioned above and does not focus solely on generating monetary value to the organization, but in creating value in a broader sense.
Organizations that implement this concept can increase creativity, improve productivity, maintain a competitive and comparative advantage in the long term and maximize value creation in the long run.
