Culture is determined not by what is written on a wall but who is working down the hall. Your culture is determined by who you hire. People are your most valuable and appreciable assets.
Webster’s Dictionary defines value as “the regard that something is held to deserve; the importance, worth, or usefulness of something.” Value can often be a very subjective thing. Many times the value of an individual to an organization can be based upon many things. I wish to help you break through the clutter so you can have a more effective process when evaluating those on your teams. The following is a formula you can use:
Production Value – Financial Value = Surplus Value
Production Value is what you produce. This may include sales, contracts, widgets produced, projects completed, etc….
Financial Value is your bottom line cost to the organization. This includes salary, benefits, taxes, overhead, etc….
Surplus Value is the difference. I teach people they are an “Individual Profit Center”. In other words, how much profit is being generated from the chair you are sitting in? The more surplus value you have, the more valuable you are.
So the question begs, what about those in your organization who are not in revenue generating positions? Every member of your organization is either in Revenue Creation or Revenue Protection.
Those in Revenue Creation are graded on Surplus Value. Those is Revenue Protection are graded on items like efficiency, accuracy and the level of support provided to Revenue Creators. The top Revenue Protectors in an organization are as valuable as the top Revenue Creators. One can simply not be as effective without the other.
But to determine the most valuable people in your organization, you must add an additional level of evaluation:
Surplus Value x Relational Value = Organizational Value
Relational Value is how well you play with others. This speaks to character, teamwork, work ethic, respect, customer relations, attitude, integrity, passion, sacrifice, leadership skills, institutional knowledge and commitment to the organization’s core values.
Organizational Value is your overall value to the organization. The individuals who produce the most organizational value are the ones most valuable members of your team.
As we are seeing in government and entertainment each day in the news, without Relational Value your Surplus Value will be short-lived and unsustainable. Thus, you have limited Organizational Value.
In conclusion, the more high producers you have with high character, the more likely you are to have a great organizational culture.
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