ADD VALUE OR GET OUT

Today, every companies try to offer products that are more exciting using processes that are more efficient. They all look for a way to add value to their business.

A value addition is all actions that drive business units to achieve superlative levels of performance. Financial analysts measure the value addition by the numbers using the cost of capital analysis, the economic value analysis, the market value analysis, and the indexing of stock prices to market indices.

The great Businessman Allen Sheppard embodies the “add value or get out” philosophy, by adopting two approaches – expertise and human assets management. Sheppard express this dual approach by introducing his Ten Commandments. They are as follows:

Commandment 1: Develop a culture that welcomes change;

Commandment 2: Delegate a capacity to succeed;

Commandment 3: Articulate a clear vision and strategy;

Commandment 4: Persevere;

Commandment 5: Keep the business simple;

Commandment 6: Aim for the impossible;

Commandment 7: Hire the very best people;

Commandment 8: Generate the challenge instinct;

Commandment 9: Over communicate to be on the safe side;

Commandment 10: Keep central staffs lean.

In most companies, there is an enormous gap between their actual performance and their potential performance. To discover this difference they must enhance their research and investment and they need to integrate Sheppard’s commandment on their strategic management.