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Discovering The New Age Of Value Creation

Forbes

6 days ago

Business
Forbes

Discovering The New Age Of Value Creation

CEOs of fast growing firms: Schmidt; Barra, Nadella, and Amin For several centuries, businesses sought mainly to make money. But some 25 years ago, a different idea began spreading. 'What if,' some said, 'instead of aiming to make money, we set out to create value for our customers?' When they did that systematically, they found that customers responded positively and, to everyone's surprise, they were usually much more profitable. So why don't all firms commit to creating value for their customers? The shift is key for many reasons: The shift is still under way. We thus now live in two different, concurrent worlds. One world is still dominated by autocrats, sharks, and self-interested businesses who are doing what they can to extract profits for themselves and their associates at considerable cost to society. The other world comprises businesses and many other kinds of organizations and individuals who are intent on creating value for others. The result here is an emerging Age of Value Creation. The idea that businesses must be primarily self-interested has a long and difficult history. Self-interest in business was assumed by the founder of modern economics, Adam Smith, in Wealth Of Nations (1776). It was presumed by the father of 20th century management processes, Frederick Taylor, in The Principles of Scientific Management (1911). It was explicitly pursued by the movement led by Nobel Laureate Milton Friedman and his colleagues to maximize shareholder value (1970 and beyond, even though the idea was eventually labeled by former CEO of GE, as 'the dumbest idea in the world.' It was endorsed by the U.S. Business Round Table (1997), until that endorsement was declared politically unacceptable in 2019. Leading management journals still publish and praise articles about self-interested businesses focused on making profits for the benefit of the firm, its executives and its shareholders. The management of self-interested corporations tends to be hierarchical, bureaucratic, mechanical, process-driven, inert, and inhuman, stifling creativity and innovation, and more. In the relatively stabler context of the 20th century, large self-interested firms made financial profits, even as staff engagement moved steadily lower and business returns gradually declined. What has led to change? It wasn't a sudden moral epiphany on the part of business leaders. It was recognition by businesses that the world itself had changed. Thus the internet (and now AI) gave rise first, to firms, new possibilities for innovation, and then to customers, more choices, and finally to firms again, the potential of new business models that can generate exponential network effects. The old way of running things couldn't keep up. Smart executives saw they had to do something different. While each firm is unique and uses its own language, the underlying management patterns have much in common. Thus Apple talks of a different 'culture'. Microsoft speaks about 'mindset', 'empathy' and 'values.' Amazon focuses on 'leadership principles' and 'works backward from the customer.' Some firms talk of 'mental models' and 'narratives.' The Agile Manifesto spoke of valuing 'individuals and interactions' more than 'processes and tools.' Despite the differences, they are all about putting people ahead of processes. This new breed of firm generally uses subjective concepts to drive their objective business processes. These mindsets, goals, values, and narratives are the very things that traditional management dismissed as having only second importance. The result has been an upheaval in every aspect of business practices. It can be called a paradigm shift in management, although probably no more than 20% of public firms have yet made the transition. The fastest growing firms have transformed almost every aspect of the enterprise so as to form an integrated, complex, multi-dimensional organism. These multiple but integrated changes require that everyone thinks, perceives, speaks, and acts differently from work in a traditional organization. Methods, processes and tools don't disappear. But in these firms. it is the mindsets, values, and narratives that drive and transform the methods and processes, rather than vice versa. The result is a culture where people can see meaning in what they do. Table 1: Self-interested Organizations and Value Creating Enterprises. Summary of prevalent differences between self-interested organizations and value-creating ... More enterprises This is not to suggest that all fast-growing firms do all these things all the time or that fast-growing firms are without flaws. All such firms need to make continued progress towards creating steadily more value for stakeholders. and avoid backsliding towards self-interest. Understanding how these fast-growing firms are being managed is the first step for those firms that are still being managed by yesterday's methods and processes. Unless they begin making similar shifts, most will not survive, at least in their current form. And read also: How Creating Value For Others Has Become The Key To Business Success Why Peter Drucker Got Customer Value Right Table 2: Firms with a track record of sustained fast growth

Entrepreneur

11-06-2025

Business
Entrepreneur

Dabur Aims Double Digit CAGR By FY28

You're reading Entrepreneur India, an international franchise of Entrepreneur Media. FMCG company Dabur India recently unveiled its refreshed strategic vision to achieve sustainable double-digit CAGR in both topline and bottomline by FY 2027-28. "Our renewed strategy is designed to harness the strength of our core while unlocking future-ready engines of value creation. It represents a fine balance between stability and disruption, scale and agility, and heritage and modernity. With new product formats, enhanced supply chain capabilities, and a renewed focus on customer-centricity, we are confident that our General Trade partners will continue to thrive alongside us as we steer Dabur into the next growth orbit," said Dabur India CEO, Mohit Malhotra. The company is reaffirming its presence in general trade with its new vision strategy and intends to work with partners to not only tap the emerging opportunities but also ensuring that partners' RoI is protected and enhanced. The company will also invest in tools and programmes to empower the stockiest partners, ranging from predictive analytics for demand planning to simplified onboarding and claims processing systems. These initiatives are designed to make doing business with Dabur easier, faster, and more rewarding. "As we look to the future, our message is simple: we are with you, we value you, and we grow with you," said Malhotra

Armacell Announces New Vice President of AMERICAS Business

National Post

05-06-2025

Business
National Post

Armacell Announces New Vice President of AMERICAS Business

Article content John Ross Turner appointed Vice President AMERICAS Role drives value creation across Advanced Insulation and Component Foams through growth, performance, innovation, teamwork and the acceleration of the development of Armacell in Energy and Industry Article content CHAPEL HILL, N.C. — Armacell, a global leader in flexible foam for the equipment insulation market and a leading provider of engineered foams, today announced the appointment of John Ross Turner as Vice President AMERICAS. He is based at Chapel Hill, NC regional headquarters and joins Armacell's Executive Management Team. Article content In this role, Turner will drive value creation across Advanced Insulation and Component Foams through growth, performance, innovation, teamwork, and the acceleration of the development of Armacell in Energy and Industry. Article content John Ross, also known as 'JR', will drive Armacell's performance and growth across North and South America in Advanced Insulation and Component Foams and accelerate the development in Energy and Industry. He brings over seven years of experience from Chargeurs Group – Novacel, where he most recently served as Managing Director Americas. His earlier career includes key leadership roles at Avery Dennison, including Plant Manager and positions in Global Supply Chain Management. He holds a Bachelor of Science in Business Administration from the University of Tennessee, with a concentration in Supply Chain Management. His expertise spans component foam strategy, safety management, procurement, digitalization and engineering projects, and operational excellence programs. Article content 'We are excited for JR to join the Armacell team,' Article content said Laurent Musy, Armacell's President and CEO. Article content 'He brings comprehensive experience in manufacturing, supply chain, commercial, and general management—skills that align perfectly with the needs of our AMERICAS region. We are confident he will help drive value creation through growth, performance, innovation and teamwork.' Article content 'Armacell is a global market leader in providing energy efficient solutions. Known for its strong track record of innovation, commitment to quality, and focus on sustainability, it's a very attractive organization to be a part of,' Article content said John Ross. Article content 'I look forward to partnering with our talented team to reach the next level of performance across the AMERICAS region, maximize synergies, agility and drive even faster execution for our customers, employees and shareholders.' Article content In his new role, John Ross Turner will lead one of the world's most dynamic markets for flexible mechanical insulation, supporting energy efficiency across commercial, residential, industrial, OEM and energy sectors. North America also serves as a hub for Armacell's specialty foam production for foam components. The company operates six manufacturing facilities in the AMERICAS: four in the United States, one in Canada, and one in Brazil. Article content © Armacell, 2025. All rights reserved. Article content ABOUT ARMACELL Article content As the inventor of flexible foam for equipment insulation and a leading provider of engineered foams, Armacell develops innovative and safe thermal and mechanical insulation solutions that create sustainable value for its customers. Armacell's products significantly contribute to driving energy efficiency worldwide. With more than 3,300 employees and 25 production plants in 20 countries, Armacell operates two main businesses, Advanced Insulation and Engineered Foams. Armacell focuses on insulation materials for technical equipment, high-performance foams for acoustic and lightweight applications, recycled PET products, next-generation aerogel technology and passive fire protection systems. Armacell in the AMERICAS has four plants in the United States, one in Canada, and one in Brazil, with its regional headquarters in Chapel Hill, North Carolina. Article content Article content Article content Article content Contacts Article content Article content Article content

Tahawul Tech

02-06-2025

Business
Tahawul Tech

Techco Transformation Archives

The insights developed during the Techco Forum are expected to significantly contribute to the industry's collective understanding and accelerate the practical implementation of Techco strategies globally, unlocking new possibilities for growth and value creation.