CovQ Insights Data Corroborates HBR Analytic Services Findings on Value Creation Excellence

Executive Summary

The Harvard Business Review (HBR) Analytic Services, in association with CovQ by 8W8, has produced the report “Mastering Value Creation by Centering Strategy and Execution.”

HBR-AS introduces a new category: ‘Value Creation Management Platforms.’ Companies that implement these platforms are better positioned than those that do not, as they enable the seamless integration of strategy and execution, leverage data effectively, and operate from a cohesive platform. This approach drives superior business outcomes for the top and bottom line, enhances shareholder value, and yields higher returns in strategy execution and change management.

These findings are reinforced by CovQ Insights Data, derived from over 10,000 data points collected through the 360-degree value driver-based corporate IQ assessment system, CovQ (Compound Value Creator Quotient). This data, in collaboration with ChatGPT, has been compiled into this report: “CovQ Insights Data Corroborates HBR Analytic Services Findings on Value Creation Excellence.”

The report is strengthened by insights and data from world-class subject matter experts, business leaders, and a diverse range of leading organizations and institutions, including Billfold, Boston Consulting Group, Columbia Business School, Gartner, Google, Grant Thornton, HBR Analytic Services, McKinsey, MongoDB, St. Gallen University, and The Laundress (a Unilever company).

Introduction

In today’s fast-paced business environment, mastering value creation has become a crucial competitive advantage. HBR Analytic Services (Harvard Business Review) has highlighted in the special report “Mastering Value Creation by Centering Strategy and Execution” the crucial importance of aligning and tying strategy with execution to drive business performance. The findings are backed by more than 30 quotes from leading experts including Prof. Rita McGrath, Columbia Business School, and Prof. Simon Grand, St. Gallen University, and data references from Boston Consulting Group and McKinsey.

The report introduces a new technology category: value creation management platforms, which CovQ by 8W8 is pioneering. One of the unique elements of CovQ (Compound Value Creator Quotient) is its integrated value-driver-based corporate IQ assessment system and derived data insights. The latest CovQ Insights Data provides evidence that fully supports the HBR Findings with detailed CovQ Scores on key value drivers and CovQ Factors of Team Alignment.

Quotes from accomplished executives at Billfold, Grant Thornton, HBR Analytic Services, MongoDB, Google, and The Laundress (Unilever) provide valuable perspectives that strengthen the clear case for adopting value creation management platforms.

By analyzing CovQ Scores and CovQ Factors of Team Alignment, organizations can better understand how to develop their strategies for superior outcomes. They can deploy and manage these strategies to completion by utilizing the cohesive and circular CovQ value creation management platform.

The CovQ Insights are generated from more than 10,000 data points from over 100 companies. The CovQ Scores range from 10 (insufficient) to 100 (outstanding). The CovQ Factor of Team Alignment is calculated by measuring the deviations from the average of a company’s participants. There are 60 CovQ Core Value Drivers grouped into five CovQ Segments:

Click to watch the intro by Alex Clemente, Managing Director, HBR Analytic Services:

Analyzing HBR-AS Findings and CovQ Insights: Intersections, Corroborations, and Evidence of Impact — In Collaboration with ChatGPT.

ChatGPT

Content

01. Top 6 CovQ Insights and Scores

02. Top 12 HBR CovQ Intersections

03. Key Takeaways

04. How to get started

05. Recommendation

06. Conclusion — The Compounding Race

01. Top 6 CovQ Insights and Scores

Strategic Alignment significantly enhances performance and shareholder value.

Productivity Increases lead to substantial cost savings and efficiency gains.

Sales Excellence drives significant business growth and revenue expansion.

Effective Transformation and Project Management ensure successful strategic changes.

Value Creation Management Platforms are essential for optimal strategy execution and avoiding high costs.

The average CovQ Score is 66. The Average CovQ Factor of Team Alignment is 77. Companies should aim to be in the 80s on both. Lots of upside for almost everyone.

02. HBR-AS CovQ Intersection

01. HBR-AS Finding

Near-Perfect Executive Team Alignment Yields a Significant Performance Edge

CovQ Intersection

Executive team alignment scores are critical. The CovQ data shows a strong correlation between high executive team alignment with a CovQ Score higher than 77, and superior performance and results. Additionally, these organizations often benefit from enhanced brand reputation and greater employer attractiveness, making them more appealing to top talent.

Value Driver: Executive Team Alignment, Brand & Employer Attractiveness

02. HBR-AS Finding

Key Opportunities for Improvement in Strategy Operations

CovQ Intersection

Strategy operations scored a CovQ Score of 58, indicating significant room for improvement. High-performing organizations score better in this area, highlighting the potential performance gains from addressing this gap.

Value Driver: Strategy Operations

03. HBR-AS Finding

Importance of Effective Strategy Execution Tools

CovQ Intersection

CovQ Scores for strategy execution tools are at 55, showing that many organizations struggle with this area. Enhancing execution tools could lead to substantial performance improvements.

Value Driver: Strategy Execution Tools

04. HBR-AS Finding

Clarity of Strategy Objectives as a Major Driver of Performance

CovQ Intersection

With a CovQ Score of 57 for clarity of strategy objectives, this area is identified as crucial for performance. Organizations that achieve higher clarity in their strategic objectives see improved performance outcomes.

Value Driver: Strategy Objectives Clarity

05. HBR-AS Finding

Need for Integrated Marketing Approaches

CovQ Intersection

The CovQ Score for integrated marketing is 52, reflecting a widespread challenge in this domain. Improved integration in marketing strategies could significantly enhance overall performance.

Value Driver: Integrated Marketing Effectiveness

06. HBR-AS Finding

Effective Innovation Processes Impact Performance

CovQ Intersection

CovQ data shows a score of 56 for effective innovation processes, indicating that optimizing this area can drive performance improvements. Organizations with better innovation processes outperform those with less effective ones.

Value Driver: Functioning Innovation Processes

07. HBR-AS Finding

Strategic Focus and Execution Are Crucial for Value Creation

CovQ Intersection

With CovQ Scores of 55 for strategy execution tools and 58 for strategy operations, it’s evident that focusing on these areas is crucial for improving value creation and overall performance.

Value Driver: Strategy Execution Tools and Operations

08. HBR-AS Finding

Productivity Increases Lead to Cost Savings and Performance Gains

CovQ Intersection

CovQ data reveals that organizations with effective productivity strategies report improved outcomes and significant cost efficiencies. The average CovQ Score for productivity and cost efficiency is 58, indicating a strong correlation between productivity improvements and cost savings.

Value Driver: Productivity and Cost Efficiency

09. HBR-AS Finding

Enhancing Shareholder Value Through Strategic Alignment

CovQ Intersection

Organizations that focus on improving strategic alignment see notable increases in shareholder value. CovQ Scores show that higher alignment correlates with enhanced shareholder returns, with an average CovQ Score of 60 in shareholder value enhancement.

Value Driver: Shareholder Value Enhancement

10. HBR-AS Finding

Sales Excellence Drives Business Growth

CovQ Intersection

CovQ data demonstrates that organizations with high scores in sales excellence experience significant growth. Effective sales strategies and practices lead to increased revenue and market share. The average CovQ Score for sales excellence and revenue growth is 59, highlighting its impact on business expansion.

Value Driver: Sales Excellence and Revenue Growth

11. HBR-AS Finding

Successful Transformation and Project Management Ensure Strategic Change

CovQ Intersection

Effective transformation and project management are critical for successful strategic changes. CovQ Scores indicate that organizations with strong project management capabilities achieve higher success rates in transformation initiatives. The average CovQ Score for transformation and project management effectiveness is 57, reflecting its importance in strategic outcomes.

Value Driver: Transformation and Project Management Effectiveness

12. HBR-AS Finding

Companies Not Using Value Creation Management Platforms Pay a High Price

CovQ Intersection

Companies Without Value Creation Management Platforms Pay a High Price CovQ Intersection: CovQ data shows that organizations lacking robust value creation management platforms have notably lower scores in strategy infrastructure (CovQ Score: 50). In contrast, those employing these platforms report higher performance in strategy execution and alignment. This highlights the critical role of value creation management platforms in enhancing overall strategic performance.

Value Driver: Strategy Infrastructure and Management Platforms

03. Key Takeaways

Alignment Drives Performance

Near-perfect executive alignment is critical for achieving superior performance.

Tools and Processes Matter

The effectiveness of strategy execution tools and innovation processes plays a significant role in organizational success.

Marketing and Sales Excellence

Integrated marketing and sales excellence are crucial for driving revenue growth. Building a desired brand is key to attracting talent and developing ompetitive advantages.

Transformation Success

Effective project management and transformation strategies ensure successful strategic changes.

Data-Driven Insights

CovQ data validates HBR’s findings, providing actionable insights for improving organizational performance, increasing productivity, and substantial cost savings.

04. How to get started

The journey to mastering value creation can begin right now. To harness the full potential of CovQ Insights Data and HBR-AS Findings, it’s imperative to implement effective value creation management platforms. Start integrating these practices today to unlock significant strategic benefits and ensure your organization is outperforming the competition and market. The sooner the management team kicks off the implementation, the earlier it will enjoy the enormous compounding effects of the ongoing improvements. It can be done in stages, phases or all at once but keep in mind the race is always on.

05. Recommendation

Gartner’s Strategy & Operating Model fully aligns with the CovQ Value Creation Management Platform

06. Conclusion — The Compounding Race

The HBR-AS Findings on mastering value creation, when substantiated by empirical and augmented CovQ Insights Data, present a unique opportunity for management to deliver superior business performance.

The evidence underscores the importance of strategic alignment on 360-degree value driers, productivity increase, effective transformation management, and value creation excellence. This combination of insights offers a powerful knowledge and arsenal for achieving sustained business success. All things considered, these insights are best deployed by implementing a value creation management platform as it is essential for overcoming strategic execution challenges and achieving superior performance.

The HBR report “Mastering Value Creation by Centering Strategy and Execution” can be downloaded from www.8W8.com