We have heard and read a ton of information about the creation of value from how it is created to how it is sustained. There is no single, applies-every-time formula for value creation. Some of the ingredients of the consolidated value of a company are its sales, marketing, personnel, goodwill, proprietary technology, and intellectual property. These and other elements are considerations in the measurements and valuation of a business. To keep value from eroding, executives have bought back shares, uncoupled mergers, jettisoned outdated facilities, and downsized personnel. Although these actions help the bottom line, they do NOT create new business, do NOT create new revenue streams and do NOT create new value.

The first step in moving forward in a positive direction is for executives to be aware of new business opportunities for their companies. The second step is to have a vision of how to pursue them. Creating new value and enhancing bottom line success is determined more by how one pursues these new opportunities than on basic tactical techniques. For example, the pursuit must incorporate highly creative and innovative approaches that include capturing the consumer's imagination and moving that person to action. How these opportunities are pursued may be the difference between settling for “me too” status or being a “real” player who can create new wealth and value.

In order to visualize its present position or gauge its achievements at any time, companies often employ modeling tools. The results indicate actions that need to be considered and implemented to obtain and sustain a competitive advantage (value). The uniqueness of modeling tools is in the synergy of their component parts together with the capabilities, experience and skills of the professionals who analyze them. They are structured to show the “inter” and “intra” organization relationships as well as external influences and detail how each contributes to the comprehensive profiling of the organization.

For example, a checklist focusing on performance and growth might include an analysis of core competencies, customer needs, competitor assessment, market dynamics and trends, training and development, and benchmarking industry best practices. A checklist focusing on profitability might include an analysis of resource effectiveness, expansion of resources, technology evaluation, developing a value base for technology, change management and profitability projections. The elements that comprise these models are not a panacea. Rather they are intended to be used as benchmarks that indicate variations from either industry standards or your own organization's pre-established standards.

Remember, a company is not just a compilation of building materials but rather a powerful force whose impact affects many people. Beyond the numbers and the organizational charts, the company is a living member of the community in which it is located. Their position on everything from hiring policies to environmental practices can affect value and must be formulated and reviewed continually to balance business and community needs. The organization's sense of community is reflected directly or indirectly through its participation in community programs. A financially healthy company that cares about the public is not only a valued asset but also a good neighbor.