The Value Creation Model

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The Value Creation Model
Anyebe, Peter, Member, HR Consultant, Nigeria

Value Creation identifies the following three value types:

  • People Value, C
  • Organizational Value, ROI and
  • The Value of the Business Environment, EB.

  • The organizational value, ROI is linked with people value, C by the following relationship:

    ROI = 2X – 1,
    X = 1/(1 - 1/C),

    C = Character of Consistency
    ROI = Return on Investment

    Given the people value, C therefore the organizational value, ROI would be
    determined automatically. Moreover this relationship is inclusive of the Value of the
    Business Environment, EB
    . The factor-C is defined according to the capacity of the
    person to overcome the vagaries of the environment. Formally:

    C’ = CWk + CNd,

    CNd = LogC/Log(1/S)
    CWk = 1 – 1/3 S,

    CNd = Need Index
    CWk = Index of Work
    S = Index of Soul
    C’ = Index of Consciousness
    C = Character Index

    The factor-C is best at a unity, for C = 1. It is optimized by focusing on the factors
    Rn and √n; as defined below:

    Rn = 2√n – C,
    C -> 1

    The factor-Rn is a measure of Rationality. And the factor-√n is the index of the
    standard procedure. In this case, rationality is the capacity to reduce phenomena into
    the five, 5 essential components.

    Then organizational growth is sustained as the C-Score of the personnel shifts to
    approximate a unity. The rate of growth would depend on the commitment to the
    project for adopting the value creation model . Recall the following dictum:

    The bit to the horse,
    The pocket to the person

    Recall also Peter Drucker as follows:

    What we reward,
    That we get

    React  |  More on the Author  |  More on this Interest Area

    Other Views by this Author: The Black Box Model: a Talent Management Model for Grooming Transformational Leaders | The Standard Procedure Series: a Phenomenology Model of Being That is the Basis for Performance Appraisal by the Sustainability Model | The Sustainability Performance Appraisal Model: The Kernel of a Talent Management Platform That Monetizes the Knowledge and HR Assets for Workforce Development, Engagement, and Retention | Describing a Quality Human Resource: Maturation


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