The answer is by satisfying needs – personal needs and business needs. The needs you satisfy determine the value you create.
Who’s needs do you satisfy? Your own? Others? What type of needs do you satisfy? How do you satisfy these needs?
Value = satisfaction of personal needs + satisfaction of business needs
Following Tony Robbins’ six human needs theory, the fundamental personal needs are certainty, variety, significance, connection, growth and contribution.
The fundamental business needs relate to income, costs, risk and, if you, like my beautiful wife who is committed to changing the world into a more sustainable model, are into that, corporate (social) responsibility.
The perfect value creation may therefore be defined as the simultaneous creation of:
- More certainty
- More variety
- More significance
- More connection
- More growth
- More (personal) contribution
- Higher income
- Less cost
- Reduced risk
- More (corporate) responsibility
How many of these needs do your Iphone satisfy? Have you ever changed job position and experienced the satisfaction of all these 10 needs; a perfect value creation?
A perfect or complete value destruction may conversely be defined as the simultaneous result in:
- Less certainty
- Less variety
- Less significance
- Less connection
- Less growth
- Less (personal) contribution
- Lower income
- Higher cost
- Increased risk
- Less (corporate) responsibility
Would being put in jail result in a complete value destruction for you? For many it would which is why it is generally a severe punishment.
A business model is the model a business applies to drive income and thereby cost, risk and corporate responsibility. Accordingly, the business model determines the creation of business value.
A life style or model is likewise the model a person applies to drive certainty, variety, significance, connection, growth and (personal) contribution. Accordingly, the life model determines the creation of personal value.
Business models need to be adjusted at an increasing phase but only few realise that life models need to change too. We must ensure continuous and never-ending improvement (kaizen) to both our business and life models.
The supreme being, the peak of life, is when you master perfect value creation for yourself AND others at the same time by the same action.
Follow this blog where we will by great questions and examples one step at a time dig into what personal and business value is, what needs are, and how to create value and how to create maximum value. I encourage you to share any examples of great value creation and destruction so that we may all learn from these.