By Thomas E. Ambler, Senior Consultant
Note: This article is part of a series taken from Thomas E. Ambler’s article The Strategic Value of Values originally published in Compass Points in April 2002. In Part 1, we introduced the series. In Part 2, we discussed Values’ Value. In this post we will discuss Market Value.
Now let’s shift attention specifically to the impact of Values in the marketplace. If you have been highly successful in the marketplace you likely have consistently done an excellent job at answering three Strategic Questions:
- What are you going to sell?
- Who is your market?
- How are you going to beat or avoid your competition?
All three questions are totally wrapped up with Values. For example, will you offer only products and services that provide social benefit? Which customers (and suppliers) should you “fire” because they cause you to constantly spin your wheels over a misfit of Values? What benefits can you provide that differentiate you and your offering from your competitors’. Even if you have to compete on a Commodity basis, where price is king, what can you do to get your act together internally to reduce your customer’s total transaction costs and still satisfy your Values, including profitability?
Everywhere you look you see anecdotal evidence that Values and market success are causally related. Scores of our clients report that their Values such as trustworthiness and integrity are the reason their customers choose them over their competitors.
Values will become even more critical determinants of market success in the future as the marketplace evolves. What is known as the Experience Economy is superseding the Service Economy and will itself be superseded by an emerging Transformation Economy, in which the highest product forms are the customers themselves, transformed the way they want to be. So it is not hard to conceive of markets where Values become the most important, explicit part of an organization’s offering.
Conclusion? Values of organizations cause market success today and in the future.
The next topic in this series will be Internal Value.
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© Copyright 2016 by Center for Simplified Strategic Planning, Inc., Ann Arbor, MI — Reprint permission granted with full attribution.
Tom Ambler is a Senior Consultant with Center for Simplified Strategic Planning, Inc. He can be reached by email at firstname.lastname@example.org