The Value Creation Model

Views > Human Resources > Idea > The Value Creation Model

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

The Value Creation Model focuses on the personnel, who operate the business functions and use the materials to create value, for both the organisation and the community at large.

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


    About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
    © 2020 12manage - The Executive Fast Track. V15.4 - Last updated: 25-2-2020. All names ™ of their owners.