g-f(2)2208 The Hidden Power of Values: Unlocking Submerged Business Value

 

genioux Fact post by Fernando Machuca and Claude

Introduction:

In the MIT Sloan Management Review webinar "Creating Values-Driven Business Value," Daniel Aronson, founder of Valutus and author of "The Value of Values," explores how acting on values that positively impact the world can improve business operations, benefit customers and employees, and bolster the bottom line. Aronson emphasizes the importance of quantifying the value of values and demonstrates how companies can measure and communicate that value to stakeholders.

genioux GK Nugget:

"Submerged value is key to understanding the true value of values; it is typically 4 to 10 times as much as visible value." — Daniel Aronson, founder of Valutus and author of "The Value of Values", April 10, 2024

genioux Foundational Fact:

Values create business value through four key components: Customers, Operations, Risks, and Employees (CORE). By acting on values, companies can differentiate themselves in the marketplace, improve customer loyalty, drive innovation, mitigate risks, and attract and retain top talent. However, much of the value created by acting on values is submerged and often goes unrecognized, leading to underinvestment in values-driven initiatives.

The 10 most relevant genioux Facts:

1. Submerged value is key to understanding the true value of values, typically 4 to 10 times as much as visible value.
2. Values help companies win in the competitive marketplace by differentiating themselves and driving customer preference and loyalty.
3. Acting on values leads to operational improvements, such as increased efficiency and innovation, by encouraging employees to see differently.
4. Values-driven companies are better equipped to identify and mitigate risks, as they look at the world through a values lens.
5. Values attract and retain top talent, leading to more engaged, productive employees and reduced turnover costs.
6. Quantifying the value of values is crucial for overcoming skepticism and securing investment in values-driven initiatives.
7. Customers are increasingly willing to pay more for and prefer products and services from companies that align with their values.
8. Sustainability leaders are 400% more likely to be innovation leaders, demonstrating the link between values and business performance.
9. Personal leadership is enhanced when leaders authentically live their values, inspiring others to follow them.
10. The importance of values in business decision-making is expected to increase in the coming years, making it imperative for companies to act now.

Conclusion:

The webinar "Creating Values-Driven Business Value" underscores the importance of recognizing and quantifying the submerged value created by acting on values. By focusing on the CORE components - Customers, Operations, Risks, and Employees - companies can unlock significant business benefits that go beyond mere reputation management. As stakeholder expectations continue to evolve, companies that authentically embed values into their operations and decision-making processes will be better positioned to thrive in the long run. By using the tools and frameworks discussed in the webinar, business leaders can make a compelling case for investing in values-driven initiatives and communicate the tangible value they create to skeptical stakeholders.

REFERENCES

The g-f GK Video

Creating Values-Driven Business Value, MIT Sloan Management Review, YouTube channel, April 4, 2022. 

Daniel Aronson

Daniel Aronson is the author of the book "The Value of Values: How Leaders Can Grow Their Businesses and Enhance Their Careers"¹². He is a pioneer in the field of measuring the impact of sustainability and responsibility, and has helped clients quantify more than $2 billion in sustainability-driven business value¹³.

Aronson is also the creator of several innovative methodologies including InVEST, which quantifies value from sustainability and responsibility, Impact Science, Customer Science, Stakeholder Science, and True Plastic Impact¹³.

In his book, Aronson argues that acting on values—doing good for the benefit of all—can substantially benefit the bottom line. He demonstrates that the “submerged value” of initiatives such as taking bold action to combat climate change, helping people find jobs, or creating an open, inclusive work environment is normally 4 to 10 times more than initially believed¹².

Aronson's work trains leaders to respond smartly and credibly to today's challenges, transforming how business can and should be done¹²⁵. His book has been well-received for its insightful and transformative approach to business ethics and sustainability¹².

Source: Conversation with Bing, 4/11/2024

(1) The Value of Values: How Leaders Can Grow Their Businesses and Enhance .... https://www.amazon.com/Value-Values-Superpower-Business-Management/dp/0262048388.

(2) The Value of Values - MIT Press. https://direct.mit.edu/books/monograph/5720/The-Value-of-ValuesHow-Leaders-Can-Grow-Their.

(3) The Value of Values: How Leaders Can Grow Their Businesses and Enhance .... https://mitpressbookstore.mit.edu/book/9780262048385.

(4) The Value of Values by Daniel Aronson: 9780262048385 .... https://www.penguinrandomhouse.com/books/730854/the-value-of-values-by-daniel-aronson/.

(5) The Value of Values – The Living Library. https://thelivinglib.org/the-value-of-values/.

(6) undefined. https://doi.org/10.7551/mitpress/14996.001.0001.

Classical Summary:

In the MIT Sloan Management Review webinar "Creating Values-Driven Business Value," Daniel Aronson, founder of Valutus and author of "The Value of Values," presents a compelling case for the business benefits of acting on values that positively impact the world. Aronson argues that while many business leaders have made sustainability, human rights, and other values-based issues a priority, they often struggle to demonstrate the tangible value of investments in these areas.

Throughout the webinar, Aronson emphasizes the importance of recognizing and quantifying the "submerged value" created by values-driven initiatives. He introduces the concept of CORE - Customers, Operations, Risks, and Employees - as a framework for understanding how values create business value. By acting on values, companies can differentiate themselves in the marketplace, improve customer loyalty, drive innovation, mitigate risks, and attract and retain top talent.

Aronson provides numerous examples and case studies to illustrate the impact of values on business performance. He cites research showing that sustainability leaders are 400% more likely to be innovation leaders and that customers are increasingly willing to pay more for and prefer products and services from companies that align with their values. He also demonstrates how values-driven companies are better equipped to identify and mitigate risks by looking at the world through a values lens.

One of the key challenges addressed in the webinar is the difficulty of quantifying the value of values. Aronson presents several tools and frameworks for measuring and communicating the business benefits of values-driven initiatives, including a tool for calculating the financial impact of customer preference for values-aligned companies. He stresses the importance of overcoming skepticism and securing investment in values-driven initiatives by making a compelling case for their business value.

The webinar also touches on the role of personal leadership in driving values-driven business success. Aronson argues that leaders who authentically live their values inspire others to follow them and contribute to a culture of values-driven decision-making.

Throughout the presentation, Aronson engages the audience with interactive polls and Q&A sessions, addressing common challenges and concerns related to implementing values-driven strategies. He concludes by emphasizing the growing importance of values in business decision-making and the need for companies to act now to capitalize on the opportunities presented by values-driven business practices.

Overall, "Creating Values-Driven Business Value" offers a persuasive and practical guide for business leaders seeking to unlock the hidden power of values and drive business success in the 21st century. By quantifying the submerged value of values-driven initiatives and aligning them with core business objectives, companies can reap significant rewards while making a positive impact on the world.

The Complementary g-f GK Video

The Value of Values | Daniel Aronson | TEDxLenoxVillage, TEDx Talks, YouTube channel, Jan 11, 2022. 

The Value of Values | Daniel Aronson | TEDxLenoxVillage

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This genioux Fact post is classified as Breaking Knowledge which means: Insights for comprehending the forces molding our world and making sense of news and trends.

Type: Breaking Knowledge, Free Speech

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REFERENCES

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