I have a simple – home made – definition of what is adding value
If whatever you are actively associated with , becomes different & better because of or with you than without you , then you have added value . And if this happens as a directed effort , in a definitive pattern , then you know how to add value – you are in a Value Creation business
I have another , simplistic ( again home made ) understanding of when value gets created
Value is created only when you do something AHEAD of (i) Time , or (ii) Asking , or (iii) Expectations
When you do / fulfill anything which was required / asked for / expected from you … even if you respond in a timely manner … it does not create value ; it just neutralizes what would have been a negative value had you not attended to that demand / requirement .
The moment some thing is raised as : Demand , Expectation , Known requirement ( JD) against you … you are already into ‘ negative ‘ – best you can do is to ‘ neutralize ‘ by quick & meaningfully responding . If it is asked , you have lost the initiative to add value
On the other hand if you don’t even respond to what is required / asked for , you create a negative value
The whole essence of this Value Creation concept or what you can see as a ‘ fulcrum ‘ of value creation is the word “ AHEAD “ . The key is to be ahead or lead in value creation process . Most of the world , most of the time is in Reactive mode — always chasing something , that is the reason why most don’t or can’t create value . In reactive mode you are always chasing something ahead of you , whereas Value creation requires that you are in a Proactive mode to ‘ lead ‘ , by thinking or sensing or realizing or innovating something Ahead of somebody
While there are certain set of abilities ( Sensing ,Communication ,Planning ,Thinking ,…) constitution ( Caring , Understanding , Reflective , Learning ,…) and orientation ( Customer focused , Win-within-Win , …) that you need to create value and that there are methods & mechanisms to help you create value — elaborating on which is a subject of a separate article ; purpose of this blog is to create an awareness in you to know that the Essence of Value Creation is one concept – AHEAD !