How should companies determine todays true value? Part I of III.

May 22nd, 2014

Some might say that it depends on what you are measuring. Or is it still just the Welch Way?

For those of you that are not informed I am referring to Jack Welch the former CEO of G.E.

Today’s post is by Ron Southard founder and CEO of SafeSourcing.

The first question one might ask of you is; are you talking about ethics or mathematics? This is certainly a fair question even when we apply it to business. The mathematics are certainly what the CFO or finance department are looking for  in a pure value equation of I am buying this product or service from you for the following amount with a return on my investment over this period of time. That’s simple math. Most can understand it. The ethical side of the company which is or should be within the domain of the CEO’s office and where strategy should be developed also adds in the esoteric or ethical value. Most of the time this is defined in the company’s Corporate Social Responsibility initiatives or CSR in terms of value to the community or communities your company serves, value to the environment or value to safety in a variety of areas. Some companies try to measure both areas and report them in the form of Triple Bottom Line results or TPL. This area is a little more difficult to understand as the audience that understands the particular area of measurement or expertise can be much smaller.

For the purposes of this two part post, we will focus on the 2nd area of determining ones value within the framework of your job where if we are not careful, the perception of a few can become the reality of many.

I heard a young worker say the other day that new hires did meaningless work and needed to be prepared for that when they started a new job.

Check back for Part II tomorrow to learn why this totally freaked me out.

In the meantime, if you would like to work with a team that is passionate about procurement and the entire procure to pay process to help your team find their passion, please contact a SafeSourcing customer services representative or ask us for an executive reference.

We look forward to and appreciate your comments

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