Define What Represents Value for the Business and Its Customers

It is important that a business make clear what it is trying to achieve.  This will be unique at least to the industry the business is in but ‘great businesses’ tend to have a unique set of values they are going after.

For example, a financial company might focus on:

  1. Retaining assets (because they make money based on a percentage of assets)
  2. Improving customer experience
  3. Lowering costs
  4. Compliance
  5. Lowering risk

A not-for-profit, such as a place the provides meals and housing for homeless may focus on:

  1. Number of meals served
  2. Number of beds provided
  3. Amount of  monetary donations received
  4. Value of non-monetary donations received

These become the basis for an organization’s strategic initiatives.

How many do you need? While you don’t have to have exactly four or five values for the business, that is often the right number.  They may not be equally important; however, once you have five, the sixth can’t be more than 16% of the value. You are close enough!