VALUE RESILIENCE
Insight
Foundation of Value Resilience
Value
VRA takes organisational value from an integrated standpoint, whereby an organisation’s value as a whole is determined by 6 major elements, all of which impact the performance of the others — thereby correctly known as a System. The 6, although fully dependent on one another, are viewed as 3 External and 3 Internal. Importantly, value is bidirectional.
Resilience
VRA regards the term and condition of Resilience as a state of readiness rather than recovery. VRA also views resilience as very transient in its purest state. It is the outcome made up of different aspects working in collaboration, commonly known as a System.
External
- Customer
- Competitor
- Industry
Internal
- Corporate Finance
- ESG
- Operational
Combination of
- State of Prevention
- Agility to Adapt
- Growth through Change
Not Isolated To
- Recovery
- Continuity
- Management of Risk
Key Understandings
The “why” required before Value Resilience can advance.
- Value migrates due to outdated business designs.
- The need for organisations to take an outside-in approach — focusing more on their effectiveness in meeting customer priorities than on determining their efficiency.
- Education can create institutionalism that leads organisations to think mechanically, resulting in siloed behaviours.
- All parts of an organisation lose their essential propriety (value) when operating in isolation.
Minds Need to be Reopened
“An ounce of information is worth a pound of data. An ounce of knowledge is worth a pound of information. An ounce of understanding is worth a pound of knowledge.”
Value Resilience Advisory
Value Resilience Advisory focuses on the blending and balancing of four major disciplines to develop the conditions towards Value Resilience.
1. Complex System Thinking
Targets conditions around decision making.
- An essential property of an element is determined by its value to the whole.
- The property (value) of any element is therefore governed by the whole.
- The property which provides that value can only be determined by one or other elements.
2. Value Migration Direction
Determined by outside influences.
- Value migration has 3 phases, all constant and accelerated by disruption.
- A phenomenon which directs customers’ priorities.
- Goes unnoticed to inside-out thinking.
3. Idealised Business Design
Outcome is always known.
- Challenges the 3 traditional business designs.
- Takes business planning and change management to another level.
- Ensures the desired outcome.
4. System Dynamics Modelling
Determines and predicts change required over time.
- Understand the behaviour of complex social, managerial, economic or ecological systems.
- Tests and uncovers failure in strategic decision making.
- Combines qualitative insight with quantitative data for comprehensive analysis.
Integrated Value Performance
Utilising the four disciplines, VRA overlays them across the six Value Performance conditions. This enables an organisation to have a complete 360-degree, long-range picture of what actually contributes to its value inflow and outflow.
These six conditions all play a part in determining the success of any business design. No individual condition holds more value than another — blended together, they influence and determine an organisation’s value performance.
Industry Rules
Understand and interpret cause and effect within the geopolitical radar.
Clients
Priorities — ensures customer-first thinking.
Competition
Achieve transient advantage.
Corporate Finance
Increase confidence in investors.
Governance
Balances effectiveness & efficiency.
Operational
Heightened level of business readiness.
References
A Blend and Balance Approach
In producing its services, Value Resilience Advisory has drawn on findings from some of the world’s leading authorities on Value Migration, Complex System Thinking, Business Design and System Dynamics — adapting and integrating them against a backdrop of existing organisational governance and best practice. Aim: Value Resilience through Environment Design.
“The biggest problem in business is staying with your previously successful business model one year too long.”
Adrian Slywotzky — business strategist and author, known for his work on value migration, business models and innovation.
“Managers are not confronted with problems that are independent of each other, but with dynamic situations that consist of complex systems of changing problems.”
Russell Ackoff — one of the founders of modern systems thinking.
“People don’t resist change. They resist being changed.”
John Sterman — professor and expert in system dynamics, sustainability and organisational learning.
“Competitive advantage is no longer sustainable forever.”
Rita McGrath — strategist and author of The End of Competitive Advantage.
“Management is, above all, a practice where art, science, and craft meet.”
Henry Mintzberg — management thinker and author of Managers Not MBAs.
“Management is doing things right; leadership is doing the right things.”
Peter Drucker — widely regarded as the father of modern management.