Breathing new life into Value Propositions
Posted: April 19, 2011 Filed under: Value Proposition Leave a commentMuch has been said and written about a “value proposition”. The term has gone through the jargon life-cycle, having enjoyed its day in the sun and now rests in the huge pile of overexposed words which once conveyed powerful ideas, but which have now largely lost their meaning – rendered nearly lifeless from overuse.
There remain a set of questions which come up in the course of business and everyday life which still seek the ideas to which the “value proposition” once so proudly pointed.
- What’s it good for?
- Why should I pay any attention to it?
- What will I get from it?
- Where is the payoff for me in it?
A couple years ago a client of mine asked a simple question which has come back to me over and over as a really useful tool for breathing some new life into the old idea we once thought about as a value proposition. His question was, “are you offering me more for less or the same for less?”
This basic equation asks two simple questions which are fundamental to nearly all decisions / evaluations, whether in our work or in our lives outside of work:
- What will I get out of it compared to what I have now? (Value)
- How will it’s cost compare with what I’m paying now? (Investment/Cost)
What has evolved is a value / cost model which takes the current state (what you get today and what you pay today) as the center point. It looks at the value/cost that can come from different get/pay combinations. This can be used to position an alternative (an offer), by identifying whether it provides more, the same or less value; for more, the same or less cost.
When thinking about how an offer compares to today (current state), the future state provided by the offer can be framed in simple pair such as more for less (more value for less investment/cost). Some pairs are obviously attractive and form the basis for most simple value propositions. But any pair can be the basis of a successful offer.
Look for more about the value proposition pairs in future posts.
Charter for Compassion is unveiled today
Posted: November 12, 2009 Filed under: Compassion | Tags: Compassion Leave a comment
Today I signed on to the Charter for Compassion.
I’ve watched this develop for the last 20 months, starting from a TED wish, developing into a project that has involved many people from all major religions, to the unveiling today of the final product – the powerful four paragraph text of the Charter for Compassion.
Here is a link to the TED site page about Karen Armstrong and her wish project.
And here is a link to the Charter for Compassion. I encourage you to look at the charter itself and the process by which it was created. It has been a really cool journey. Here is the YouTube video of the charter.
The coming together of the world’s major religions around a set of common beliefs holds in it the best promise I see for a more peaceful world.
In a down economy, do we isolate or build community?
Posted: February 13, 2009 Filed under: Thriving in a Down Economy, World View | Tags: Community, Economy, Global, World Leave a commentThis is the central question for all of us in the next few months.
We face this choice as communities and nations.
Each year the World Economic Forum brings together business, political and other leaders for a late January conference in Davos, Switzerland. The 2009 forum’s website has webcasts of the various sessions which can be downloaded. More about the forum in another post in which I’ll share some of the sessions I found particularly interesting.
One of the themes which emerged from the Forum this year is concern that in the face of the global downturn there will be a rise of economic nationalism and protectionism. The evidence that free trade grows the global economy is now pretty clear. While there may be winners and losers for a period of time, the expansion of the global economy provides opportunities for all parts of the world to improve the standard of living of their people. This has been called the virtuous cycle. Expansion in ever widening circles as we open ourselves to the greater interdependence of a global economy.
It follows then, that when free trade is restricted, global growth slows making it harder and harder for any part of the world to enjoy a better life. This vicious cycle spirals inward in ever decreasing circles of less and less for everyone.
A friend in a hard time . . . is a friend for a long time
Posted: February 10, 2009 Filed under: Thriving in a Down Economy Leave a commentTimes of hardship are when we form some of our deepest, longest lasting relationships. When we are feeling vulnerable we are open in different ways than when we’re secure and our defenses are up. In change management terms, hard times can “unfreeze” us – open us to change.
And with change comes opportunity for those who see it. Now is exactly the time to build deeper relationships with your current customers. Go to them – before they come to you. Ask them what you can do to help them with the pressures they are feeling in this downturn. Just asking may well set you apart from many of your competitors.
Help your customers use less of your product
Posted: February 12, 2008 Filed under: Thriving in a Down Economy Leave a commentSounds counter intuitive, but in a down economy this is exactly what you can do to align with customers.
What we all need to do, as individuals and organizations, is reduce our cost structure. That is the opportunity of this economic crisis. We are really forced to challenge all of our assumptions about about what we must have, the way we must do things.
So you know that your customers need to reduce their costs. If they haven’t let you know already, it is just a matter of time. They’re likely to be telling you they need to cut back on what they’re paying you. And here’s the choice:
Either you cut your price or reduce the quantity they buy from you.
Rick Gage 