Chief Value Officer
A Strategic Approach
There has been a lot of conversation of late around ESG, and purpose driven organizations. Gone are the days business’ can only focus on short term profits and cash flows. Stakeholders (from shareholders to consumers) are demanding more. No matter the size of your organization you are now required to balance corporate responsibility (ESG) with long-term value and profits. Not an easy task! Leading through Disruption by Andrew Liveris gives some insight into how corporations can achieve this task.
I also want to touch on this the newly emerging title of Chief Value Officer. Chief Value Officer (CVO) is a newly coined title for a executive responsible for overseeing and ensuring the creation, delivery, and communication of value to customers, stakeholders, and shareholders. Their main focus might be on maximizing the perceived value of products, services, and the overall brand in the eyes of the market.
CEO’s and CFO’s were historically focused was on financial management, reporting, and analysis as the primary measure of value. A CVO, takes a deeper approach to value creation. Successful organization will have to make sure they have strategic systems and processes to incorporate drive the following 6 proficiencies:
Stakeholder-Centric Mindset: Shifting from a financial focus on maximizing value to shareholders to all stakeholder-focus is critical. ESG demands the adoption of a customer-centric approach, putting the needs and wants of customers and and all stakeholders is required in decision-making processes.
Communication Skills: You'll need to effectively communicate the value proposition of your company's offerings to customers, employees, investors, and other stakeholders. This includes articulating how your products or services solve problems or improve the lives of customers.
Collaboration and Cross-Functional Skills: Value creation often requires collaboration across different departments such as marketing, product development, and customer service. This will require strong relationships with these teams, working together to align strategies for maximum value delivery.
Data-Driven Decision Making: Analyzing customer data and market trends is essential and will help you make informed decisions about product development, pricing, and other strategies related to value creation.
Innovation and Creativity: The role of a CVO involves driving innovation and finding creative ways to differentiate your company's offerings from competitors. This could include developing unique value propositions, exploring new business models, or finding innovative solutions to customer problems.
Leadership and Change Management: This may involve leading a cultural change within the organization, emphasizing customer-centric values and strategies. Strong leadership and change management skills will be vital to drive this transformation successfully.
Whether you have a CVO or not, does your organization have the systems and processes to drive this shift? The changing landscape of business is an opportunity to drive growth and value to the business from a broader foundation. A strong dynamic strategic process is critical to the future success of businesses today.