itSMF - Introduction to The V A L U E Formula (Ken Wendle)

Introduction

The speaker introduces himself and explains the genesis of the value formula.

Background

• The speaker thanks the audience for attending and acknowledges Patrick for arranging the presentation.

• The value formula is based on a long career in service management, research, white papers, books, and interviews with experts.

• The speaker developed the formula to add value to engagements and transactions and pay it back to those who helped him over the years.

Understanding Value

The speaker discusses what value is and how it's generated.

What is Value?

• Value comes from what we have plus what we can do.

• It's not what we have or can do that determines our value; it's what we do with what we have that creates our value.

Generating Value

• Skilled individuals can take resources and capabilities to create something of value.

• Focus on creating value should be a guiding principle for organizations.

Understanding Value

In this section, the speaker defines value and explains how it is perceived. He also talks about how to create more value for stakeholders.

Defining Value

• Value is defined as the perceived benefits, usefulness, and importance of something.

• Something is worth it if its benefits are greater than its cost in terms of time, money, and hassle.

• Sometimes things may not be worth it due to their high cost or inconvenience.

Creating More Value

• To create more value for stakeholders, organizations can expand what they can do and what they have.

• This can be achieved by understanding and increasing internal resources and capabilities, using them efficiently and effectively, and discovering external resources that can be leveraged.

Maximizing Value

In this section, the speaker discusses how to maximize value by doing more of the right things and less of the wrong things. He also talks about the importance of having a vision statement.

Doing More of the Right Things

• To maximize value, organizations need to do more of the right things and less of the wrong things.

• The right things include being intentional about delivering value, aligning with a vision statement, leveraging external resources, looking internally for available resources.

Importance of Vision Statement

• A vision statement is an aspirational statement that defines an organization's intentionality in developing and delivering value.

• Execution is necessary to deliver value; without execution everything else is worthless.

Crafting a Vision Statement

In this section, the speaker discusses the importance of crafting a vision statement for an organization. A vision statement is defined as an optimistic dream of tomorrow that pulls you toward a desirable future. The speaker emphasizes that it's not an end point but rather a beginning point and helps establish what the organization is all about.

Starting with Why

• The speaker recommends starting with why to understand why the organization exists.

• Using Alzheimer's Association as an example, their why is to focus on the elimination of Alzheimer's by understanding it and ultimately eradicating it from our environment.

• Once we establish our vision, we should align ourselves to it and commit to it. Building a visionary company requires 1% vision and 99% alignment.

Importance of Alignment

• Alignment behind our vision establishes governance within the organization.

• Alignment means putting all the wood behind one arrow - committing all actions, decisions, and goals in support of the vision.

• Without alignment, unlocking potential becomes difficult or even impossible.

Key Takeaways

• A vision statement provides purpose and drives meaningful goals for an organization.

• Starting with why helps organizations understand their existence and formulates their basis for a vision statement.

• Alignment behind a shared vision establishes governance within an organization.

Understanding Leverage

In this section, the speaker discusses the importance of understanding what is important and staying focused on the wildly important goals. The speaker also introduces the concept of leverage and how it can be used to gain an advantage by using something outside of ourselves.

Importance of Staying Focused

• It's important to understand what's important and stay focused on the wildly important goals.

• We need to avoid getting distracted by shiny new things that take us away from our vision.

• The more we narrow our focus on game changers, the more effective we will be as an organization in support of our vision.

Understanding Leverage

• Leverage is gaining an advantage by using something outside of ourselves.

• Leverage can make something difficult easier and a seemingly impossible job possible.

• There are various aspects or facets of leverage such as people, organizations, processes, tools, and technology.

Leveraging People

• People can be leveraged for their experience and knowledge in any field.

• Don't be afraid to ask for help when needed. The worst that can happen is they say no.

• Fear of looking inadequate or rejection often keeps people from asking for help.

Leveraging Organizations

• Organizations such as clubs, trade associations, industry associations like itsmf can be leveraged to better understand jobs and careers.

Leveraging Processes and Technology

In this section, the speaker talks about leveraging processes and technology to become more effective and efficient. He emphasizes the importance of understanding processes before automating them and taking an inventory of existing tools.

Processes as a Machine

• Processes are like a machine that consistently produces the same output.

• Good processes can be improved even further.

Caution with Automation

• Do not automate bad processes; understand the process first.

• Utilize tools and technology to improve processes.

Inventory of Tools

• Take an inventory of existing tools before seeking new ones.

• Organizations often have the necessary tools but do not use them effectively.

Example: 3D Printing for Habitat for Humanity

• Habitat for Humanity used 3D printing to build homes faster.

• The organization leveraged new technology to increase its capabilities.

Uniqueness in Business

In this section, the speaker discusses how uniqueness is important in standing out from competition. He highlights various facets of uniqueness such as people, philosophy, environment, and culture.

Unique Combination of Skills

• Everyone has a unique combination of skills and knowledge.

• Uniqueness allows individuals or organizations to stand out from competition.

Facets of Uniqueness

People

• People are a common facet between external and internal philosophy.

• Internal IT organizations have a unique position that they should capitalize on.

Philosophy

• How an organization operates is another facet of uniqueness.

Environment

• The environment an organization operates within can also contribute to its uniqueness.

Culture

• Culture is another facet of uniqueness that can make a difference.

Being Different is Better than Being Better

This section discusses the importance of being unique and different in business, rather than just focusing on being better. It also touches on the role of culture and management in shaping behavior, as well as the critical nature of execution.

Unique Value Proposition

• Being different is better than being better.

• Customers value uniqueness and differentiation.

• Understanding your unique value proposition is key to success.

Culture and Management

• Culture manifests itself through behavior.

• There are two cultures within an organization: employee beliefs and management culture.

• Management heavily influences employee behavior towards customers.

Execution

• Execution is about delivering value.

• Execution is often overlooked but critical to success.

• Establish a process for execution based on "The Four Disciplines of Execution."

• Focus on one or two wildly important goals.

Accountability and Synergy

In this section, the speaker talks about the importance of accountability and synergy in achieving organizational goals.

Accountability

• Establishing goals is not enough; people need to be held accountable for achieving them.

• Weekly check-ins are necessary to assess progress towards goals and identify any obstacles that need to be removed.

• A commitment issue and an accountability issue are more common than a technology or people issue in most businesses.

Synergy

• Synergy is the interaction of elements that produce an effect greater than the sum of their individual parts.

• When people function as a cohesive team committed to the organization's vision, they are better able to achieve their goals.

• Success breeds success, and everything working together creates momentum toward organizational goals.

Final Thoughts

• Collaboration and co-creation of value through synergy are essential for delivering value beyond what we think we're doing.

Doing Small Things with Great Love

In this section, the speaker talks about how doing small things with great love can make a difference in an organization. They also discuss the idea of bringing passion to work and putting love into what you do.

Bringing Passion to Work

• The speaker believes that while not everyone may love what they do, they should bring their passion to work and put love into what they are doing.

• They emphasize that it's not necessarily what you deliver but how you deliver it that makes an experience unique from others.

Uniqueness in Organizations

• When asked about cookie-cutter solutions, the speaker suggests that uniqueness comes from designing your own cookie cutter rather than using one off the shelf.

• Processes can produce consistent output, but uniqueness comes from how you create or deliver something.

• The speaker gives an example of a baking show where contestants are asked to bring their own creativity and uniqueness while still producing identical results.

Vision and Alignment

• The speaker discusses the importance of having a vision as a guiding star for organizations.

• Alignment is important in showing commitment to the vision.

• Uniqueness is also important in supporting alignment.

• Lack of vision from senior management can make it difficult for teams to align themselves towards a common goal.

Establishing a Vision for an Organization

In this section, the speaker emphasizes the importance of management in establishing a vision for an organization. He explains that it is not solely the responsibility of management to define the vision, but individual organizations should create their own internal vision in support of that.

Importance of Vision Statement

• The speaker highlights that creating a vision statement is essential to understand why an organization exists.

• Simon Sinek's Golden Circle theory is mentioned, which states that companies should focus on their "why" rather than just making money.

• The speaker contrasts Apple's "change the world" approach with IBM or Dell's "we make computers" approach and how people buy into your why.

Southwest Airlines' Vision Statement

• The speaker uses Southwest Airlines as an example of a company with a clear and effective vision statement.

• Their vision statement is to be the most flown, most profitable, and most loved airline in the United States.

• This statement communicates to employees what they need to do to achieve this goal - turn planes around quickly, reduce costs, maintain planes well, and provide excellent customer service.

Importance of Vision Statement for Internal Organization

• The speaker reiterates that having a clear and concise vision statement helps align employees within an organization towards common goals.

Value Series and Workshops

In this section, the speaker talks about the possibility of providing a value series that goes into more detail on various aspects discussed earlier. He also mentions his Kindle book, which is available at a low price on Amazon in several countries. Additionally, he offers to deliver workshops virtually or in person in the EU.

Providing a Value Series

• The speaker discusses the possibility of providing a value series that goes into more detail on various aspects discussed earlier.

• He suggests spending about the same amount of time on individual components such as value vision alignment and leverage.

Kindle Book Availability

• The speaker mentions that his Kindle book is available at a low price on Amazon France, Germany, Italy, Netherlands, Spain and United Kingdom.

Workshops Offered

• The speaker offers to deliver one or more workshops virtually or in person in the EU.

• He encourages those interested to get in touch with him via LinkedIn where his email address can be found.

• He suggests adding this workshop to support customers and help them deliver more value.