Framework for Thriving in Business: Values, Value, Valuation

Content Evolution nuWorld is an invitation-only video podcast hosted by Kevin Clark and Mike McGuire, bringing together thought leaders at the intersection of people and technology. Each week, the program features a dynamic discussion on topics ranging from organizational strategy to emerging technological trends, often involving a diverse group of professionals and executives.

In a recent CE nuWorld, the hosts and guests discussed the 3V Framework—Values, Value, and Valuation—and its implications for sustainable business growth.

This episode highlighted how businesses can navigate complex landscapes by aligning their core values with the value they create and the valuation they ultimately achieve. The discussion brought to life the 3V Framework as a model for driving organizational purpose and long-term success.

The 3V Framework: Aligning Purpose and Performance

The 3V Framework—Values, Value, and Valuation—offers a strategic approach that connects an organization’s core values with the tangible value it delivers to clients, customers and stakeholders, culminating in its long-term valuation. Incubated 15 years ago and further developed by CE nuWorld co-host Kevin Clark and first appearing as a contribution to the 2009 book Value Above Cost by Don Sexton (pgs 278-279), this framework provides a holistic model that integrates purpose with performance.

Values: The Foundation of Purpose-Driven Organizations

Values are the fundamental beliefs that guide an organization’s actions and decisions. They are not just words on a wall or a section in an annual report; they are the bedrock upon which companies build trust and credibility. When organizations understand and authentically embody their values, they create a shared foundation with their customers, employees, and broader community.

“It’s about understanding the values that you have as a collective group, and then where is the shared values environment with the people that you might choose to serve?” Clark explains. “If you know what those values are, that gives you the capacity and the foundation to then create value in the marketplace because there’s a shared frame you have with your customers and suppliers.”

Tim Bajarin, a guest on the show, discusses the importance of leadership in embedding values within an organization: “Michael Dell felt that the Dell corporate needed to reflect his values in the sense of how they operate, whether it be customer service or DEI or whatever.” This alignment enabled Dell to evolve its business practices while maintaining a strong connection to its foundational principles.

Marc Prensky, another participant, emphasizes the significance of values but cautioned against idealism: “Business is mostly about making money – and very little else. All the other stuff is just frosting. Many would like to see values at the core, but it typically comes down to financials – when profits aren’t enough, the frosting gets cut.” This perspective reminds us that values must be authentically integrated into business strategy to avoid being perceived as mere window dressing.

Value: Translating Purpose into Action

Once an organization has a clear understanding of its values, the next step is to translate these values into actionable value in the marketplace. This involves not only creating products and services that meet customer needs but doing so in a way that is consistent with the organization’s ethical and strategic framework.

“Now we know where we think we want to exist. We think we know why we’re here. Now, here’s what we’re going to bring into the world,” says Clark during the episode. Value creation is where purpose becomes tangible. It’s about more than just delivering products; it’s about delivering experiences and outcomes that resonate with stakeholders.

A striking example of value creation in action can be seen in the work of Root Capital, a nonprofit organization that supports agricultural businesses in underserved communities. By providing financial support and training, Root Capital enables these businesses to thrive, creating a ripple effect of positive economic and social impact. For investors like the Gates Foundation and the Ford Foundation, the value created by Root Capital is not just in financial returns but in the transformational outcomes for communities. As Clark recounted, “One of the outcomes that one of the people said was, ‘We like the core mission, but we like it even more that once the economic level goes up in a village, the young women don’t have to go and fetch water and they can go to school.’”

Valuation: The Market’s Perception of Future Potential

Valuation is the culmination of an organization’s values and the value it creates. It is the market’s assessment of the company’s potential to continue generating value in the future. This forward-looking component is crucial because it reflects not only the company’s current performance but also its perceived ability to sustain and grow its impact.

Clark emphasized that valuation is influenced by a company’s ability to consistently deliver on its promises. “The result, if you do that well, is valuation. Meaning, because I think that you’re performing well right now, I believe that discounted future earnings are there because I have a belief that you’re going to continue to outperform your competitors or others in the marketplace,” he says.

Tim Bajarin offers insights into how technology can enhance value creation and ultimately impact valuation: “Companies are increasingly using artificial intelligence to gain deeper insights from customer feedback and data. This allows them to not only understand current needs but to anticipate future ones, thereby creating a more sustainable value proposition.”

Marc Prensky adds a note of caution: “It’s too easy to point to a few shining examples, whether it be Apple or others. For many companies, the financials drive the decisions, and that can overshadow any commitment to core values.” His comments serve as a reminder that valuation must be grounded in authentic value creation to last.

“If you decide, ‘Here’s how much money I want to make,’ and then try to force that into the value that you’re going to create in the marketplace, and then expect that’s going to shape your value system—it doesn’t work,” says Clark. “It only works if you start with knowing who you are. You’re going to then act in ways that deliver real value to the marketplace and then the outcome is virtuous valuation.”

Sustainable Values: The Leadership Challenge

A values-driven model can be challenging, particularly when leadership changes. Rob O'Regan, a guest on the show, poses a critical question: “Is this type of model sustainable in this day and age where company values seem to shift as the leadership teams shift?” He highlighted the difficulty of maintaining consistent values when new leadership brings in different priorities and perspectives.

Tim Bajarin responds by emphasizing the importance of founder-led values: “Founders make the difference. For example, Steve Jobs put so much effort into training Tim Cook and instilling Apple’s values that they continue to guide the company even after his passing.” This underscores the need for strong leadership to maintain a cohesive values-driven strategy over time.

A Virtuous Cycle: Values, Value, Valuation

The 3V Framework is not a linear process but a virtuous cycle. As companies align their values with their actions and stakeholders recognize this alignment through sustainable valuation, they reinforce their capacity to create more value. This, in turn, strengthens their core values, creating a positive feedback loop that drives long-term success.

Benn Konsynski, another participant in the discussion, points out the danger of confusing transactions with relationships: “You have them [customers] as long as you don’t screw up. If you are reliably delivering, you’re in good shape, but if you mess up, the relationship—and the lifetime customer value—ends. The trust is broken.” His insights highlight the fragility of valuation that is not supported by genuine value creation and alignment with values.? Consider also that the definition of customer lifetime value (CLV)_ and the ability to measure it beyond a calendar year underscore Konsynski’s dictum.?

Organizations that understand and implement the 3V Framework can navigate the complexities of modern business with a clear sense of purpose and direction. They are not swayed by the latest trends or short-term pressures but are guided by a deep understanding of who they are, whom they serve, and the impact they seek to create in the world.

In a rapidly changing world, this alignment of values, value, and valuation is not just a business imperative—it is a strategic advantage.

By Kevin Clark, Founder of Content Evolution, with the assistance of Clark’s Content Evolution GPT Profile digital twin and the transcript from this episode of Content Evolution nuWorld.

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