O'Reilly logo

Governance Reimagined: Organizational Design, Risk, and Value Creation by David R. Koenig

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 1

Understanding Value, Values, and Value Creation

The reason that any organization exists is to create value. Whether serving the needs of the clients of a nonprofit charity or generating market or intrinsic value for the owners of a company, the creation of value is the primary objective that all volunteer groups, management committees, and supervisory bodies necessarily pursue. Most organizations, however, don't fully recognize the differences or the connections between value, their values, and the elements that drive value creation.

How Much is that Duck in the Window?

One of the most difficult steps in developing this appreciation is to define the meaning of value to an organization. Most typically, we measure value in financial or economic terms. Hence, most businesses understand the notion that their products and services, marketed and sold or utilized successfully, will generate value. However, the story only begins there.

Whether you realize it or not, all of us encounter simple situations in our daily lives that demonstrate where value has been created. For example, I'm hungry, so my brain decides that I should walk two blocks to the local co-op for some food. As I enter the store, I'm greeted by a beautiful display of various fruits including kiwis, nectarines, oranges, and apples. But how should I choose?

I've decided, or someone has convinced me, that I should prefer something healthy to eat. After all, it's better for my body and carries the promise of lower ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required