In today's VUCA world (which stands for Volatile, Uncertain, Complex, and Ambiguous, but may as well stand for Very Uncomfortable Confusing Alphabet), senior business leaders are bombarded with a dizzying array of value creation models. And, let's face it, trying to choose the right model feels like navigating a jungle of acronyms while wearing a blindfold—on a rollercoaster.
The Model Mayhem
Remember when business was straightforward? You made a product, sold it, and voilà—value was created. Now, there are more value creation models than Starbucks drink combinations. There’s the Shareholder Value Model, the Stakeholder Value Model, the Triple Bottom Line, the Balanced Scorecard, and even something called the “Circular Economy” (which sounds suspiciously like what happens when you try to leave a party and get stuck in endless goodbye conversations).
Leaders today are expected to know and master all of these models. It’s like showing up to a meeting thinking you’re ready to discuss quarterly profits, only to find out it’s actually an episode of "Who Wants to Be a Value Creation Guru?"—except there are no lifelines, and your only prize is a headache
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The Real VUCA
The real volatility isn’t the markets—it’s trying to keep up with the ever-evolving models that promise to save your business from implosion. Leaders are told they need to focus on creating "value." But then comes the hard part: which value? There’s social value, customer value, shareholder value, employee value, societal value, and probably "value" you haven’t even invented yet. Before you know it, you’re sitting in a strategy session wondering if you should start offering “free hugs” as part of your customer value proposition.
The uncertainty comes from the sheer volume of choices. One day, someone’s raving about Agile Value Creation, and the next day, they’re throwing Lean Six Sigma at you as if you’re supposed to know what that means. (Hint: it’s not a new type of workout.)
As for complexity, well, you might have to analyze matrices, draw a few decision trees, and map out all your value touchpoints before anyone lets you have your morning coffee. If you’re lucky, you’ll find a model that works—until next quarter when a new consulting firm rolls in with the "ultimate" framework that’s guaranteed to transform your business (or at least confuse it further).
Finally, ambiguity reigns supreme. You spend an hour in a presentation on value creation and leave with notes filled with so many buzzwords and acronyms that it reads like an ancient language. “Okay, I think we’re supposed to create strategic synergies using the ESG framework while aligning with KPIs and adopting an OKR approach. Or was it ORM? Wait… what was the ‘O’ again?”
Analysis Paralysis (with a Side of Existential Crisis)
After swimming in a sea of models, it’s no wonder senior business leaders experience a little analysis paralysis. You start asking yourself big questions like, “Am I even creating value? Is my business model actually just a tangled mess of jargon? Is ‘value’ even real, or just something consultants invented so they could charge more?”
In a VUCA world, business leaders can quickly go from captains of industry to deer in headlights as they sift through the endless value creation options. It's as if every value model comes with a hidden catchphrase: “Choose wisely, or risk eternal confusion!”
The Lighter Side of Value Creation Chaos
But hey, who said business couldn’t be fun? Value creation models are like an elaborate scavenger hunt, where the prize is probably better profits—but only if you can find the right combination of buzzwords and frameworks first. And on the plus side, you’ll always have something new to talk about at networking events! (“Oh, you’re still using Porter’s Five Forces? Cute. I just switched to the Triple Helix model. It’s like a value creation upgrade. You should try it!”)
Conclusion
For senior business leaders, the sheer number of value creation models can feel overwhelming, especially in the VUCA world. It’s like being handed a thousand-piece puzzle and asked to solve it while balancing on a surfboard in a hurricane. But here’s the good news: sometimes, the best value you can create is in laughter. After all, when the going gets tough, the tough get going… to find a consultant who can explain what the heck “value” means this week.
Stuart Hardy Co-Founder
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