BEE Partner, South Africa Economy Watch

8. Share wealth

According to holistic health guru Deepak Chopra, one of the fundamental universal principles is that of giving.” This principle works through a form of universal reciprocity, whereby the act of giving, in whatever form it may take, is returned to the giver. This reciprocity may not come from the recipient, but may find its way to the original giver via another source. In a business context, sharing wealth, particularly with one’s employees, in whatever form that may take, is a form of giving. The new breed of South African manager will find it particularly beneficial to enhance the talents, willpower and motivation of his or her employees by sharing the company’s wealth with them. South African companies have to have as many of their people as possible feel part of the company’s strategic initiative if it is going to be successful in tackling the opposition. Sharing the wealth of the company with employees rewards them for their endeavours and spurs them on to achieve even greater feats.

9. Personalise value innovation for customers

For a business organisation from a developing economy, value i_nnovation is one of the greatest strategic tools it will have at its disposal. Value innovation is more than simply adding value to a _customer proposition. From a strategic perspective, value innovation also encompasses adding value to how the organisation functions, and how to do so in a highly innovative manner. The new breed of _manager will need to master this tool and be able to apply it in a _competitive way.

The process of value innovation requires guidance and direction, and therefore has to take its cue from how the company sees itself. It also has to be aligned with the company’s vision, and coupled with a strong marketing infrastructure and customer-orientated culture. The company will also need to provide its customers with new value propositions, which, according to marketing writer Laura Mazur, are focused on three issues: new product development, services and delivery mechanisms.’ It could even be a combination of two or more issues, but it must lead to customer satisfaction and, ultimately, customer loyalty, which in turn will provide sustainable and profitable growth for one’s company.

Value innovation also has to be customer-service-orientated, which means regularly redefining what is meant by service in the organisation, and doing so on an ongoing basis. Only by bringing customers into the process and by asking them to define service excellence will the organisation be able to truly identify the opportunities for creating value innovation. Each of the abovementioned three issues is customer-service-related.

Value innovation is also a branding issue. It has to reach into the very heart of the company and cover all departments and functions. Therefore, true value innovation has to examine ways in which each individual employee can add value that is of benefit to his or her customer on an ongoing basis. That is what makes it personalised.

Innovation that is created for innovation’s sake will fall short of the mark and mean little to the customer. The secret is to work smarter and to be customer-focused in a most profound manner, backed up by innovative thinking in all departments of the organisatio_n and in ways that are of vital importance to the customer. Real innovators challenge conventional wisdom and dispose of the rule book. However, the culture of the company needs to allow for that. The new generation of South African manager, in competing in the global arena, has to develop a culture of innovative thinking in his or her organisation at all levels if new standards are going to be achieved, and new and better ways of competing are going to be attained.

Value innovation can also be defined as everyone in the organisation innovatively providing better service to the customer. In industrial marketing, value innovation can only succeed if everyone adds value in a highly original manner to the customer with whom they deal. It is also linked to the way the organisation sees itself, because that determines its behaviour, which in turn influences the value that its people provide to internal as well as external customers. The behaviour of the organisation’s employees, guided by its vision and value system, will direct the innovativeness of the value system, which in turn will improve behaviour.

The most effective way of introducing value innovation to an organisation is by bringing the employees into the process and by using the ‘sphere of influence‘ concept. Everyone in an organisation functions within a sphere of influence — in other words, every action undertaken by an employee influences the actions undertaken by others. The key to personalising value innovation is for everyone to leverage their sphere of influence.

The concept of value innovation in an organisation-to-organisation context also suggests that innovation must take place to add the right kind of value to the customer’s perception of the company and its product. For this to be effective, the personalisation process has to be undertaken at two distinct yet interrelated levels in the organisation. The first is at corporate level. Here the supplying organisation should be aligning itself with its customer’s vision, mission and value system, and its personalised thinking must be taken right down to the shop floor. Employees need to be encouraged to automatically look for value-adding possibilities and opportunities in whatever they do and with whomever they interact.

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