This article is written especially for you who is in the beginning of your entrepreneurial journey, or those of you who are eager to know how to create value creation models for others, and increase your profit, build brand awareness, as well as have happy customers and employees as a very nice bonus!
Here are just a couple of reasons (out of many) to read this article:
-Understand the power of company values;
-Learn from the examples of some great value creators;
-Get a friendly kick to start applying this knowledge in your company.
Great, let’s get it started!
Here are two magic words to begin with. Value. Creation. So, what is value creation exactly?
If you start googling it now, you will find tons of definitions, such as “any process that creates outputs that are more valuable than its inputs”, or “a process when a business earns revenue that exceeds expenses”, or other ones full of financial terminology.
Boring, right? And actually, not that relevant anymore.
Let us explain you why.
Nowadays, the term “value creation” is not limited to the financial framework anymore: it has grown out of it. It has become a very broad concept, having embraced under its umbrella less obvious drivers, such as ideas, people, and brand itself.
If value creation in the past was mostly shaped by industrialization and mass production processes, value creation in the present (and in the future) heavily leans on people’s creativity and innovation.
And here is where the real potential and power of your company lies.
Why? Because first of all, value creation works in a long-term perspective, carving in stone the company’s good image and reputation in the market. Companies being value creation models for others beat competitors and achieve long-lasting growth, since they are seen as innovative, flexible, sustainable, credible, trust-worthy, …(feel free to continue the list) by their customers.
Depending on which values the company promotes, it can also create a sense of belonging to a particular customer’s community. It makes you feel part of them, it makes you feel important and listened to.
Here are some examples for you to better understand our thoughts.
Why having one million options of coffee chains (cheaper, offering promotions, closer to your home) you still buy yours at Starbucks? Because that’s exactly what they wanted when they sat down to brainstorm ideas at their value creation workshop. And that’s what they did: they generated a set of values which resonated so well in the hearts of their customers. Just look at the Starbucks official website:
With our partners, our coffee and our customers at our core, we live these values:
- Creating a culture of warmth and belonging, where everyone is welcome.
- Acting with courage, challenging the status quo and finding new ways to grow our company and each other.
- Being present, connecting with transparency, dignity and respect.
- Delivering our very best in all we do, holding ourselves accountable for results.
We are performance driven, through the lens of humanity.
Some of the necessary ingredients for a successful recipe are used here:
- Creating a sense of belonging to a luxury brand;
- A customized touch (your name is written on the coffee cup);
- Getting more sustainable: if you bring your own mug or tumbler, Starbucks rewards you with a $0.10 cup discount;
- Cutting-edge, innovative ways of working;
- High quality;
- Human-centered attitude.
Or what about another example – Adidas, maybe you will appreciate it more, if you are a heavy tea consumer and a big fan of Bayern Munich. That’s what they say about themselves in Adidas:
Our culture is shaped by our core belief ‘Through sport, we have the power to change lives’ and by our people, who are the key to the company’s success. We have great talents in our organization who work with passion for sports and our brands. It is our people that bring our strategy to life and make the difference in achieving our long-term goals.
Athletes will not settle for average. And neither do we. We have a clear mission: To be the best sports company in the world. Every day, we come to work to create and sell the best sports and fitness products in the world, and to offer the best service and consumer experience – and to do it all in a sustainable way. To successfully do that, we focus entirely on our authentic sports brands as they connect and engage with our consumers.
We are sure that you can already clearly see the main points here, let’s revise them again:
- People-centered attitude;
- Long-term perspective;
- Challenging and innovative approach;
- Constant engagement with customers;
- Focus on sustainability.
Also, what made us choose Adidas as one of our examples, is their daring attitude. They state in a very clear way that they want to be the best and bring only the best to their customers. And, by doing this, they have created their own community: people who share the same values as they do; those ones who also set the bar very high.
Does it ring the bell? Oh yes. Creating a feeling of belonging to your community is one of the main values which is worth starting with/constantly working on in your entrepreneurial journey.
Another important point that we wanted to bring up in this article as well is…it’s not only about the customers! Look at the other side of the coin, and you will see the employees there too. Who would like to work in a company with weird values or no values at all? And who would like to work in the above-mentioned companies? Thank you, put your hand down.
The company review site Glassdoor made the list of the Top 25 Companies For Culture And Values. According to Forbes, “the companies that fared the best in this evaluation are those with a clear mission statement and stated values that are congruent internally and externally. Employees frequently take note of how the company deals with users, clients, and external constituents, as well as how they behave ”within the walls” of the company”.
Have a human-centered approach not only towards your customers; better start with your personnel first. Think of creating a really supportive and motivational environment for your employees, a place where they want to go, not have to. They will appreciate it a lot, and their talents will shine even brighter (but don’t forget about salary increase too).
Thus, it is quite obvious that value creation is important not only for the company in the marketplace and its customers, but also for the company’s inner climate and its employees.
So, bring your brand values to life! The time to act is now😊