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Value – Part Two: Two Kinds of Value

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This article is taken from “Measuring Value and Results”

Value Defined

In part one we defined what is meant by the term “Value”.

It is not what we do (deliverables); it is what the client gets.

This is the “What”; I call this Macro Value

In other words, in some way that is very important to client, his/her current situation is made better, as a result of what we did.

But value also implies that you get “What” you want it in the way you would most want it.

This is the “How”; I call this Micro Value

In the chart in part one we discussed the three levels of value with respect to magnitude and impact of the work we do for the client in conjunction with the complexity and expertise we would need to offer to get them the value they want and need.

In this section we will explore the two types of value; macro, the “What” and micro, the “How” elements of value.

Two Types of Value

1. Macro Value

2. Micro Value

1. Macro value is “What” you get (agreed upon outcome or result).

The systemic problem is solved, the dominoes are falling better etc.

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2. Micro value is “How” you get it (the process to getting you what you want, Macro Value), being done in a way that exceeds your expectations.

The value discussed above is Macro value, that is to say, the outcome that the client wants and needs.

 

Micro Value Defined: “How” the Process

Value in the Micro or “How” sense means Faster X Better X Safer

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In the chart below, the vertical axis is time with Slow at the Bottom and Fast at the top.

The horizontal axis is Effectiveness time with Superficial on the Left and Excellent on the right.

The diagonal line represents the relationship you have with the client.

It, the relationship is always measured in one currency, trust.

As you get their situation fixed “faster and better”, you are also building a trusted advisor relationship with them throughout each step in the process.

The key word being “trusted”.

It is vital, even mandatory that you build trust.

You better be good, and fast; that is baseline, like an airplane flying you safely to where you are going.

Trust (the client feeling safe) is the capstone of Micro value.

 

Micro Value: Faster X Better X Safer

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In this two-part article we have established and defined what we mean by value, its dimensions.

The question of course that we must ask ourselves is, “Have I listened carefully enough to my client such that I know and fully understand their macro need (the “What”) and their micro need (the “How”)?

And beyond that do I know how to listen to them in such a facilitative manner that they actually “think about what they think” and begin to see needs and methods to improve their situation that they had not thought of before.

That too is value.

That is what will separate you from other “vendors'” and render them unable to see, view or treat you as a commodity.

Then of course, we need to help the client measure and assess the value we will bring to the project.

Any service provider who suggests that, immediately separates himself from the  competition.

So now the client sees you in a different light – better than the competition – because:

1. The way you have asked questions and listened has helped her think about about what she thinks and thereby created value.

2. You have proffered 5 levels of measurement but which he can assess the value received.

If you have further interest, you can read about the five steps to measure value in the book displayed at the top of this page.

I wish you every success.

By the way, if you have found this two-part article to be helpful, why not pass it along to a friend or colleague?

 

For more on this topic, we recommend the following

Book

Measuring Value and Results

The Five Steps to Ensure and Measure
the ROI of Any Consulting Project

Click Here For Video and Full Description

 

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