Home > Corporate Tales > A question of value

A question of value

Yesterday, I was wandering about the internet, when I bumped into Porter’s Value Chain Analysis. I had learnt that concept a few months ago, but like many other things, it got stowed away somewhere in my brain.

So what is this concept? To summarize, an organization’s value chain is the chain of activities that the organization performs as part of its business. This includes not only the primary activities for that organization (e.g. Marketing for Nike or frying chips for Hot Chips), but also extends to the non-critical (or support) activities – human resource management, facilities administration (which in turn might be critical in some other organization). The subsequent analysis of this value chain can be (and has been) used by organizations for their strategic planning.

However, I had a rather interesting discussion when I learnt this concept. The faculty on the course pointed out that in most organizations, the people who rise to the top fastest are those that have spent most of their time in that part of the chain which creates the most value. It’s a long sentence, but pause for a moment and read it again.

The most value.

Think about it.

For Apple, it’s Steve Jobs – the world’s greatest pitchman.

For PepsiCo, it’s Indra Nooyi – who has spent good time in positions related to Strategy, Marketing and Acquisitions.

And you will find many more examples.

Translating that to my career would mean 1. Evaluating what part of the chain I operate in and 2. Evaluating whether those are the parts that add most value to the organization as a whole.

Figuring out where I am is pretty easy. The tough part is when I begin to measure the value I add.

Me? Add Value? In this organization? Naaaaahh.

Considering my job profile, in any other organization I would have been simply warming a chair, waiting for the pink slip. Here, the incompetence of others makes me indispensible.

  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: