Creating Value

Bob Schultek
Author of
The Gauntlet

Our time is a finite, unrecoverable resource which makes it very valuable. As a leader, precious time is expected to create value for the organization. Did your leadership help your people create value today? What benefits were produced for your customers and your organization in return for the time you and they invested?

Ford’s Model T was more efficient to build than any other automobile at the time, so each worker produced far more value per day than they could building a competitor’s car. Because his workers were more productive, Ford could charge less for each car which enabled him to sell more of them and pay higher salaries to attract better workers. The competitors didn’t have workers who were weaker, less skilled or lazy; they lost because Ford focused on productivity in a way that they didn’t.

Productivity is the amount of useful output, or value, created for every invested hour of work; the metric for useful output is typically money, or time and materials converted to money. Today, the internet makes it faster and easier for leaders and their people to access information and resources that can maximize productivity.

Leaders who engage with their people to improve productivity create value in two ways. First, they secure quantifiable benefits from an improved process that allows them to move faster and more nimbly, generating value sooner. They also foster a culture of innovation and improvement that sustains productivity by providing a channel for people to continually master their work and make a difference.

Value creation is the point. You and your team only get today once. How will you spend it?

Where might you and your team focus your time and energy to improve productivity?
How does focusing on these areas create value?

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