Measurable value keeps us focused and on track; intangible value helps drive continuous improvement
For centuries philosophers have pondered questions of why and how we humans place value on the people, ideas and objects in the world around us. There’s even a specific category to question value: Axiology. The Oxford Dictionary defines value as the importance, worth, or usefulness of something. Classical economists define the value of an object or condition as the amount of discomfort or labor saved through the consumption or use of the object or condition.
As business people, measurable value keeps us focused and on track, striving for continuous cost and efficiency improvements. Oniqua’s customers demonstrate measureable value like these real world examples:
- Improve operating profit by reducing cost of goods sold
- Cut working capital requirements by reducing inventory
- Reduce stockouts by optimizing MRO inventory
- Eliminate surplus inventory by improving planned maintenance practices
- Shrink total procurement spend by reducing off contract spend
These hard measures help our customers keep score and show proof of improvements, and offer them the flexibility and agility to respond innovatively to unexpected opportunities.
Oniqua also helps clients examine and evaluate the intangible benefits of better processes and analytical tools, and their impact on optimization and continuous improvement:
- Knowing decisions are made based on data, analysis and facts – not gut feel
- Using analysis to focus on the 20% changes that drive the 80% improvements
- Evaluating and rewarding suppliers by using quantifiable statistics
- Giving the boss accurate, timely, useful reports
- Solving the problems that previous managers consigned to the “too hard” basket
There's a simple formula used in outcome oriented delivery engagements – E = Q x A, where:
- E = Effectiveness – for our purpose, we’ll make this synonymous with Oniqua’s value delivery approach.
- Q = Quality – this is technical soundness of the solution; the development of the business process; the defined roles and responsibilities; the accuracy of the data, etc.
- A = Acceptance – this is the adoption and buy in from all stakeholders; change management, communication, and moving the group from awareness to excitement to adoption to full acceptance.
Even with maximum effectiveness (E), the theoretical maximum value delivered can only be achieved with a quality solution (Q) combined with 100 percent acceptance (A). Any degradation of either quality or acceptance will leave value on the table. For Oniqua clients, acceptance is just as important for value delivery as the quality of the solution and the effectiveness of the engagement.
At Oniqua, we know that the value we ultimately deliver will be defined by the customer. And that means demonstrating effectiveness, delivering desired outcomes, and traveling with them as they journey toward and achieve the improved future state. And just as important, we lead them to the understanding that true value is both measurable and intangible.
Image source: http://en.wikipedia.org/wiki/Cullinan_Diamond