Financial Value (the money you make) and Intellectual Value (the process in which you make it) are absolutely critical to the advancement of our economy, as they have been the over the past two generations, however we as human beings evolve and desire more in life, personally and professionally. The impactof those first two forms of value in a bubble can help the economy or they can hurt it over the long term if the impacton “people” is not at the core of business decisions. Relational Value is the newest form of value that essentially aligns your people, customers, clients, employees, team members together as one, which creates the greatest level of impact.
Financial Value
The value created from output of our companies, it is transactional in nature, the more that can be produced the more money can be made. It is the monetary aspect made from the product or service sold. Financial Value is measured by output, characterized as transactional and creates a win/lose mindset. Purely financial value oriented businesses are being commoditized in today’s economy and will be hard pressed to remain in existence given the breadth of differentiation in today’s marketplace. Monetary gain is the primary driver behind Financial Value.
Intellectual Value
The efficiency, effectiveness and productivity aspect of the output, it is process based. Enhanced improvements to output create more Financial Value and therefore, in theory, the more intellectual value utilized the more financial value can be created. Intellectual Value is based on the data points being a primary driver for decisions, essentially the smartest in the room wins. The use of metrics, financial ratios, and data points are examples of indicators that companies use to make their strategic decisions, even if it is at the expense of their people.
Relational Value
Is about meaningful output, it’s solution based, problem solving and personalized to the end user, employee, client or customer. Relational Value is rooted in the collaboration and connectivity between employees, customers, clients and the product or service provided. It is the personal development and care for all team members. It is the experience and effort put into delivering an exceptional service or product to the end consumer. Relational Value inside and outside of the company is based on how connected one is to the brand, and the promise of the brand.
What level of IMPACT do you want to have?
The Level of Impact of 2.0 Companies (2 forms of value):
Financial Value + Intellectual Value - Relational Value = Self-Interested
Intellectual Value + Relational Value - Financial Value = Unsustainable
Relational Value + Financial Value - Intellectual Value = Inefficient
The Level of Impact of a 3.0 Companies ( 3 forms of value):
Financial Value + Intellectual Value + Relational Value = Impactful Company
We believe the leaders and companies that will win in the next cycle of economic growth will provide their stakeholders all three forms of Economic Value, by creating a 3.0 - Level of Impact, that will blow their competition away!
Go to www.relationalvalue.com to learn more.