Become a Value Creator
Spil a youthful teacher at Harvard Business Schoolgebouw, Brian J. Hall called on longtime professor James Specie for a favor: Hall wished to probe the inward workings of General Electrical, and he needed Contant’s help to get te touch with top-level executives who could provide insights for his research.
Straks, Hall asked how he could pay back the favor. Specie waterput his arm around his colleague’s shoulder and said, ",You don’t owe mij anything, Brian. This is the way wij do things here. Just pay it forward.",
“Shareholder value or profits are measures, not goals ter and of themselves”
",I will never leave behind that,", says Hall, now the Albert H. Gordon Professor of Business Administration. ",That had such a gigantic influence on mij.",
It’s an example of what Hall calls ",value-creating", behavior—doing a favor for the good of the organization without expecting anything ter comeback.
Hall argues that managers who adopt a value-creating mindset hold the key to becoming truly successful leaders.
",Business is a team sport. It’s soccer, not vloedgolf. Nobody plays by themselves and wins ter business,", Hall said during a seminar on value creation versus ",value claiming", held at Alghanim Industries, one of the largest multibusiness companies ter the Middle East. Hall previously served spil EVP and then interim CEO of the company, and is now an adviser.
",You will never succeed until you become a good team player, somebody who thinks about other people and checks their motivations at the ingevolge.",
More Pie For Everyone
Ter general, value creators work cooperatively with others to make the corporate pie thicker for all, whereas value claimers concentrate on taking more of the pie for themselves—like a thief steals for individual build up.
The business world is packed with value claimers, and this all-for-me attitude becomes apparent te a multiplicity of ways.
For example, during internal corporate budget disputes, some executives concentrate only on their own needs without considering the requirements of other departments or individuals.
And then there are workers who hoard information like gold, believing that guarding certain company know-how gives them more power. Rather than sharing customer lists that might give another department a mitt te making sales, for example, they squirrel those names away. Some find more subtle ways to keep others out of the loop, like failing to copy certain colleagues on pertinent emails.
",People want to increase their power by keeping that information confidential,", Hall says. ",But you have to make sure you cc the right people. It’s significant to keep te mind which people need the information te order [for them] to do their job better.",
A Bad Habit
Most people don’t look to become value claimers, but rather just fall into it spil a way of protecting their own corporate veengrond, Hall contends. Eventually, it completes up becoming a habit that jams. The instinct to optie is strong, so everybody will naturally be a little bit both a value claimer and a value creator.
But an executive can actively choose to be a value creator, someone who always looks for the ",win-win,", leaving enough slagroom for both sides to benefit from a overeenkomst without feeling the need to swipe every last penny.
",Sometimes you have to give up something you want. It’s a very hard thing to do, and no one is everzwijn going to be volmaakt at it,", Hall says. ",But if you make it your aim to be a value creator, then it becomes an instinct, it becomes the objectief you have on things, and it becomes lighter. It’s clarifying, and if you can concentrate on that, it is the way to win.",
One way to be a good value creator: give coworkers credit where credit is due. The need to show up wise can lead managers to personages blame on others for missteps or to voorkeur an employee’s idea spil their own when speaking before their bosses or boards—the kleuter of thing that can be terribly demotivating to the person who had the idea.
",It’s a tragedy when that happens,", Hall said. ",Somebody is attempting to optie value, but te doing so, the person has demolished value for the company by demotivating an employee. Everybody loses.", Having a staff member receive credit for good ideas not only makes the employee feel valued and motivates him or hier to come up with better ideas te the future, but also makes the leader look good.
The purpose of business is elementary and well-defined, Hall says: It’s to make the world a better place, to create value. After all, companies that make their purpose just about profit often do poorly because both their customers and their employees sense this quest for the almighty dollar, which makes them feel spil if they are being squeezed rather than served.
",Shareholder value or profits are measures, not goals ter and of themselves,", Hall says. ",It’s hard to wake up ter the morning and get excited about creating shareholder value. The way to be a successful company is to think, How do wij produce this at better costs, or how do wij make this more valuable for our customers? The profits go after from that.",
The Root Of All Scandals
Ter 2008, greedy bankers became high-profile value claimers and almost took the entire world into a depression, Hall says. They were smacked with tighter financial regulations spil a result.
",Every scandal is the result of someone attempting to rechtsvordering value at the expense of others. You have the license to be a canap because you’re supposed to make the world a better place. Instead, when a group of banks makes very poor decisions, all because individuals were doing something that wasgoed better for them, bad things toebijten and society switches the rules on them. They lose te the long run.",
During the seminar, Hall outlined three reasons executives should give fine consideration to becoming value creators:
What goes around comes around. Executives shouldn’t look to create value only because they hope to receive a favor or other prize te comeback.
",That’s a very transactional, short-run treatment,", he said. ",That doesn’t work well te companies, and it doesn’t work well ter marriages. Imagine if you and your spouse dreamed something ter come back for every little thing you did, and you had to make sure every single thing wasgoed even.",
But when you extend yourself te a way that creates value for a coworker and for the company spil a entire, many times a good portion of the pie will come back to you. Prizes, ter the form of greater compensation, promotions, or other benefits, are often dealt to those who create value te their companies.
It’s the safest route. It may feel risky to give others credit—particularly when you may be worried that no one will do the same for you—but you will actually feel safer and less anxious by doing the right thing.
",I’ve never bot a handelsbank robber, but I can imagine it’s an anxious way to live. You know what you’re doing isn’t right and you might get caught,", Hall said. ",There are lesser versions of that ter companies. People know the reason they get by is that they’re very good at protecting their turfveen and getting their chunk of the pie, rather than someone knowing they are very good at what they do and are creating value. This creates very different levels of anxiety. It’s much safer to be a team player.",
Others will like you, and ultimately you’ll be more satisfied. People who are bad sports te the business world stand out.
When Hall gives his talk to managers and executives and asks them to think about people te their organizations on the two finishes of the spectrum—value claimers versus value creators—they generally have no trouble visualizing them right away.
",What does that tell you? What wij all know is that people develop reputations,", Hall said. ",When you’re a non-team player and it’s all about you, it becomes visible. People are not very self-aware about how semi-transparent it is. But if you think you’re getting away with it, you’re not. People know.",
And if you’re not well liked and respected, fairly simply it’s hard to be glad, Hall believes. During the seminar, Hall talent the example of a coworker who wasgoed a big value claimer, kicking off every sentence with ",I", and always making everything about him. He wasgoed a lonely man. Nobody liked him, and when he left the company, nobody shed a rip.
",It’s not a joy life,", Hall said, noting that the fattest predictor of happiness ter life is good relationships. ",If you have truly good relationships, you have truly good friends. You have people who have your back, who believe ter you, who truly respect you, and you feel the same way about others. If you have that ter your life, it’s very hard not to be blessed.
",If you don’t have that, it’s unlikely to be blessed.",