Business Leadership: Creating Value

Business Leadership: Creating Value

Creating value for your customers, society, and your business means that you must be in a constant state of providing more. If we want to create value then focusing on customer service, innovation, and profitability is a good place to begin.

I. Customer Service

If it ever seems too costly to provide more services, then always remember that some things are invaluable. Providing good customer service does not cost the business much, but is priceless to many consumers. Often consumers decide to buy their products and services from the companies that offer the best customer service. Sam Walton, CEO of Wal-Mart put it best when he said:

There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else (1).

Making your customers and clients comfortable, satisfied, and appreciated is the difference between having one-time sale or a lifetime of sales. When customers like you and your customer service personnel, they are more likely to come back to your for your products and services again and again.

Customer service goes beyond being polite and saying "thank you." In order to distinguish yourself from your competition, offer to do things that merely show the customer that you care. For example, if you sold vacation packages and your prices were the same or even higher than the competition, you could offer to call your prospective customer before his/her trip to see if he/she has any last minute questions or concerns. You could also mail the prospect a gift, like a card, pen, or brochure. You'd be surprised how appreciative prospective customers can be.

II. Innovation

Innovation distinguishes between a leader and a follower (2). - Steve Jobs, Founder of Apple

Not only are innovators the business leaders of the world, but innovators are more profitable, more respected, and long-lasting. In a world dominated by the preference and usage of Microsoft products, innovation has kept Apple alive and well. Steve Jobs and his team at Apple knew the importance of being at the forefront of addressing not only today's needs, but tomorrow's as well.

Like Jobs, Charles Koch warns us that companies cannot grow and keep up with the competition by just giving what is presently beneficial to the customer.

Both a company and its customers gain when the company anticipates new value opportunities rather than just reacting to what they value today (2).

In essence, innovation is finding new things that will one day be useful to the consumer. There are many ways to find out what will be the valuable products and services of tomorrow--from research to unconventional thinking:

- Conducting market research using consumer trends and studies can lead to new ideas about tomorrow's needs.

- Focus Groups often give insight into what more customers expect and value.

- Examining government policy can lead to new ideas and opportunities (i.e. The US government's recent increase in allocation towards renewable energy solutions is fueling growth of the green industry).

- Regular group brainstorming sessions always adds new and exciting ideas.

Many of the best business leaders constantly remind us that sometimes innovation comes through perhaps the most unconventional means of all--intuition. For one, Microsoft founder, Bill Gates suggests:

Often you have to rely on intuition (3).

Perhaps innovation through intuition is a product of a firm willingness to look for new opportunities in overlooked and undervalued places. This idea is better expressed in Charles Koch's statement:

The process of discovery...begins with a mindset that constantly seeks out gaps between what is and what could be (4).

III. Profitability

There are always opportunities through which businessmen can profit handsomely if they will only recognize and seize them (5). -Jean Paul Getty, American Industrialist

An industrialist who created one of the largest oil companies at the time, Jean Paul Getty knows quite a bit about profitability. In 1957, he was named Fortune magazine's richest person in the world. He knows that profitability is a result of becoming aware of all opportunities and taking action. Creating profitable opportunities does not merely involve discovery and investment in the latest technology. When we focus our energy on increasing profits, we should look for ways to create value in all areas. The next section will further examine principles that will help us create profitable opportunities.

Creating Profitable Opportunities >>