Driving Value Creation Through Proper Design of Goal Realization Frameworks

Pieter van Oijen

doi:10.1177/2394964320938220

Abstract

Organizations have become increasingly aware that customer value creation is critical to remain relevant and to stay in business. Hence, most organizations have incorporated these elements into their overall mission statement and their organization-wide strategy. Yet many of them struggle to create an organization where employees focus effectively on executing the formulated strategy and on delivering and continuously improving customer value. This article describes how clever and tailored design of goal realization in organizations can foster value creation and embed it in the daily work routines of employees. The key to success is to adopt goal realization in such a way that it creates an environment where employees feel safe, empowered and confident to go after aspirational, value-based goals while creating alignment and connecting employees to the overall goals and objectives of the organization. This is illustrated in a practical manner by presenting the framework as adopted by Google.

Highlights

Organizations are facing a rapidly evolving business environment
Companies with legacy struggle to make progress to transform into agile businesses where customer value delivery has become part of the DNA of the organization
A traditional approach where goals are set at the top and are cascaded down, in order to create alignment and to get employees to focus on the organizational priorities, works against all this

Summary

Introduction

Organizations are facing a rapidly evolving business environment. Technological and digital advancements increasingly allow customers to judge and compare product quality or service delivery. Value creation, nowadays requires taking initiative, experimentation, failure and learning, extensive (cross-functional) collaboration and frequent feedback (from colleagues, stakeholders and clients) In such a setting, highly motivated employees who are part of a high-trust organization and who work in high-performing teams will make the difference. To create line of sight at all levels in the organization, the goals should be linked some way or the other to overarching concepts such as the mission, vision, strategy or objectives of the organization The value of this (often painful) exercise should not be overlooked as it creates a sense of purpose and shows the impact of work.

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Conclusion