Value means different things to different people, not the word but what is of value. We hear today value all throughout the business world but over use leads to dilution of meaning. Yes my favorite Phrase from chem 101 was “the solution to pollution is dilution” . While this works for chemistry and cleaning up spills it is the end game of a term in marketing.
The business world often adopts terms and dilutes them to noise and that is what is currently happening to “Value”. Everyone and everything adds value and in the sense that energy in is not destructive it does add value that can be extracted. The bigger question is the quantity of that value and to whom is it targeted?
As PMs and PMMs we should be less random about our approach and clearly identify for whom we add value and what we gain in return from the recipient. Key to our role is the management of resources to return. Especially today with limited cycles and capital to secure more cycles we need to get any effort (Product) in a sustainable mode as rapidly as possible. Cycles burned on “Adding Value” that does not return enough to secure 2x cycles than it cost to develop and distribute is negative.
Call that last statement my definition of capitalism, energy in must reap greater energy out Period. To this concept I promote broad value studies where the entire value chain is researched to determine the greatest return on cycles and efforts. After review you can choose value and effort to win market and get the flywheel going! You may not choose the biggest slice of the pie the first time but the highest return on effort.
Think of this as an athlete would. You have to run a marathon and for that will need 26k calories, yes now you could eat the triple chocolate molten ice cream cake and claim enough caloric value but your body will convert that to sugar then fat and the energy to use it will be greater than the energy you need from it on the run. Choice the right foods in combination and over the time of the event and you will succeed!
