Outcome Values
2.2 Main ComponentsYou need to spend all of your time and energy on creating something that actually brings value to the people you’re asking for money
What is an outcome value?
Definition
The tangible result or effect of an action, situation, or event experienced or perceived by the stakeholders of the organisation
Purpose
To fulfil the stakeholders needs which in turn gives the organisation its purpose
The whole purpose of an organisation is to provide value for its stakeholders. As value is a vague word, we need to be more specific.
Value as an outcome
The CUBE® framework defines Outcome Value, referring to that it is a result of something, which in this case is execution by operations.
Outcome value is defined by stakeholders
Value can be perceived in many different ways by many different groups, meaning that value is subjective in nature. This means that an organisation can try to predict what is valuable and what is not, but it cannot define the real value. The real value of something is defined by its stakeholders.
Value should be positive, but can be negative
The natural strive is of course to produce a net positive outcome. But sometimes. some execution might have some negative and some positive outcome values. The separation of the different outcome value allows the breaking down of “value” in both negative and positive aspects that can be weighted into a whole.
Customer value is all about providing quality products and services that satisfies the customers needs and expectations.
Employee value is all about providing the employees with a fulfilling and satisfying work environment in the broad definition.
Structural value is all about producing tangible and intangible assets that when applied in operations in the future can be turned into other outcome values.
Financial value is all about generating profits and making sure the business can continue to operate and providing returns to investors.
Societal value is all about the impact the organisation makes on the social and ecological environment.
Next Step
Read more about the first outcome value: Customer value…