The Evolution of Economic Value
Our economic system continues to evolve, starting with Financial Value, which has become the bedrock of our economy. The next form of value was Intellectual Value which aligns with the next cycle of economic value. Today, we are in the midst of the Relational Value Evolution, the newest form of value. It must be delivered to all stakeholders for our economic system to continue its prosperity for the generations to come. The next decade will be one of the most transformative periods we have seen in the last 30 years. As our leaders begin to understand the importance of relational value and figure out ways to deliver this third form of value to their team members, employees, customers, and clients - winners will start to emerge. The winners in the next economic cycle will deliver three forms of value: Financial, Intellectual, AND Relational.
Any poll or study on employee happiness or engagement will state that most people are not engaged at work, enjoy the work they do, or appreciate their work environment. We believe this is because our work environments lack Relational Value. They lack connectivity to the task, co-workers, or with the end client. The work we all do matters. Our companies have the Financial Value and the Intellectual Value components in the Economic Value formula figured out. However; many have not fully embraced Relational Value. Therein lies the opportunity for all of us.
The Relational Value Evolution has begun and we all have a choice to make!
The following slides are from the presentation we give to companies, leadership teams, economic forums, and industry conferences. After our presentation, many ask for a copy of our slides and our notes. Therefore, here is the story line behind the evolution, the presentation, and the notes that accompany the presentation. We share our insight because it not about us, its about our economic system and vitality of it. Relational Value is the next economic catalyst. We must embrace our people and our customers for our economy to thrive.
Please click here for the full Evolution of Economic Value presentation with notes or see the abridged version below.
Today, we have all have the opportunity to lead the future of our economic wellbeing, an opportunity we all could have a part in creating over the next decade.
Evolution of Economic Value - Abridged Version
Evolution of Economic Value is based on: Financial Value, Intellectual Value, and Relational Value.
One of the simplest ways to depict the growth of economic value over time is through the Stock Market.
The “Evolution of Economic Value” during the last 100 years has evolved through 3 forms of economic value.
Financial Value (FV)–is the value created from the output. It is transactional in nature. FV has become the bedrock of our economy, created by the Silent Generation after WWII.
Intellectual Value (IV)– it’s the efficiency, effectiveness, and productivity aspect of the output. The Baby Boomers enhanced our economy by bringing IV (education) into the economic equation.
Relational value –it’s about meaningful output. It’s solution based, problem solving, and personalized to the end user, employee, client or customer. Gen X and Gen Y are focused on delivering RV.
Financial Value and Intellectual Value are absolutely critical to the advancement of our economy. However; we as humans desire more from life. Relational Value is the next form of value that essentially aligns our people, customers, clients, employees, team members together as one.
The 4 companies above do not provide services or products that are unique. One aspect that is different from their competitors - they all provide great service and exceptional experiences that are more personalized to their consumer. They all offer Relational Value.
Being Relational is in all we do. It’s what we all crave in life, from childhood to the last stages of life. We were created to have a connection with other human beings. Future generations will need social, emotional, and relational intelligence. These skillsets are based on Relational Value.
What if our companies did not only focus on the ROI (Return on Investment) but they also evaluated, measured, and monitored their RORI (Return on Relational Investment)?
This is not a revolution - this is an evolution. We take the positives of our past and we shed the negative. It is not about being right or wrong. It is about being better to each other and better for the generations to come.
Today, 20-30% of the companies have started the Relational Value Evolution. By 2025, more and more companies will have joined the evolution. After 2025, the remaining companies will be late adopters and behind the curve.
We believe the future value of our economy will be based not only Financial Value and Intellectual Value, BUT also in the Relational Value we create by “harnessing the collective genius of our people.”
The companies that focus on the personal growth and the wellbeing of their employees, their customers, and our communities will lead the way. If our Economic System is going to continue to thrive, we must take better care of our most valuable asset, our Human Capital.