Summary: Find out about company value lines, industry value lines, product value lines and consumer value lines, and how to evaluate them.
You need to know how any market you are going to enter works. The company is one big unit of value, and it therefore needs the Value Line to work, but don’t forget too that products and brands require their own Value Lines. This means you’ll need to know about several Value Lines – Company Value Lines, Industry Value Lines, Product Value Lines, and Consumer Value Lines. You’ll cover aspects such as what’s needed to supply, how people buy, where they buy, what collaborators are involved and so on.
Certain Value Creators are required to match the Product Value Line to the Consumer Value Line, better than other companies and their offerings, and it’s vital to know what these Value Creators are!
When you conduct market research you’ll assess Value by looking at the Performance 14 across 5 areas -
- Customers
- Competitors
- Collaborators
- Context (social, economic, political, technological and regulatory factors)
- Company (our company)
Richard Branson claims you can learn how any market or industry works in fine detail within 4 weeks. It took him that time to work out exactly how the airline industry works and 4 months to set up his airline. Yet it’s important this is a realistic inside out assessment, rather than an outside in or external one. It may be that people within the industry are required as sources. For example, Richard Branson soon found out that you didn’t buy planes – you leased them from banks – and how the airports controlled the allocation of slots with different slots commanding different fees. An intimate knowledge of how everything works is required to understand the Value Creators required – only then can you see all the details and the crucial essentials.
Now because Value Creators are used to help the company out execute on the Product Value Line, they of course are units of value themselves.
So, it follows that to execute Value Creators well, they themselves require execution of their very own Value Lines each and every time too.
Remember the Value Line.
Identify Value – Create Value – Communicate Value (effectiveness and targeted exposure level) – Deliver Value – Support Value – Monitor and Measure Value – Sustain Value
So as an example, the Value Creator of hiring great staff requires –
Identify Value (see need for new staff) – Create Value (make job) – Communicate Value – (write job advert and advertise it to the right people, sell job to them) Deliver Value (ensure the job is as promised) – Monitor and Measure Value (see how they do in the interview and in the job and how they feel) – Sustain Value (develop your people do they keep getting better and look for new staff as and when required)
And another example, is writing a policy because Policies are also Value Creators –
Identify Value (see need for new policy) – Create Value (make policy) – Communicate Value – (write in ways people understand, sell reasons for it, get it to the right people) Deliver Value (make it so it actually works) – Monitor and Measure Value (train people on it, ask for evidence of use, monitor effectiveness of the changes made) – Sustain Value (improve it)
For any Value Creator to work well, each part of its Value Line must be executed well!
So as you can see Value, whether it’s at the level of a company, a market or a Value Creator, always has the same DNA – that of the Value Line.
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