The Expectation Is Value Creation, Part I

For Business Development, There Is a Better Way.
In many industries, “business development” is enacted through networking, pursuing leads and pitching prospects with a well-practiced presentation. When digitally initiated, the role is assisted by content creation, algorithm proficiency and keen interruption. Important and noble in its aspirations, synonyms for business development include “commercial expansion,” “strategic partnerships” and “sales growth.” As a current example of conventional output, I am participating in business development through this very editorial effort (and I hide not the fact that it strives to introduce and remind others of my business, my books and my beliefs).

At the same time, this undertaking has blemishes. Lots of them. For starters, business development practices often begin with too much scope and too little focus. They regularly endorse an unwise dependence on personal charisma, present trends or product features. It really is no wonder that connected initiatives presume fractional success rates! Worst of all, many established norms perpetuate objectives and celebrate results that are inarguably lopsided or altogether 1-sided.

It is only somewhat lighthearted when I suggest service businesses altogether discontinue use of this term. As a proud Georgian, I analogize that traditional business development efforts have too much pit… and not enough peach.

Now, to be sure, my suggested replacement wording has its own pockmarked past as flimsy corporate lexicon. Nonetheless, “Value Creation” is the definitive conjoining of two words that smartly and powerfully shift the emphasis. Instead of prioritizing additional opportunities for the source of origin, it pledges a rightful return to the recipient. In plain sight, the respective definitions tell us all we need to know.
VALUE: the perception of price relative to quality or impact.
CREATION: to design into existence.

The near-singular interpretation of this combination means previous familiarity with this phrase is unimportant. And there is little room for debate. At its very essence, the purposeful union of these terms by any leader is an inherent commitment to “design into existence” something where “price relative to quality or impact” is always acceptable (or better!).

Beyond the Definitions

Of course, it is not helpful to only define and reconsider “value creation.” For any organization where the growth potential is inseparable from the service proposition, there must be a specific process to ensure any progress connected to it.

And I believe there is. We’ve already concluded that Value Creation is not akin to a stereotypical business development pitch or plan… But now we must grasp that it is a finely tuned procedure of its own.

In Chapter 9 of my book, It’s Not the Bricks, It’s the Mortar: Optimize Your Retail Business for Lasting Success, I specify various ways retailers, restaurateurs and service professionals can use Value Creation to increase revenue, grow transactions and improve volume forecasts. These cited examples are visibly effective complements to the core offering and existing streams of revenue. All of them succeed because of existing resources and the favorable reputation already held by the business…

But there’s something else. Something more.

The Three Actions for Successful Value Creation

Value Creation should be additionally valuable to leaders because it is so darned procedural, replicable and scalable. Its superpower is in its development as a very memorable methodology. To be specific, every instance and attempt require three (3) sequential actions to ensure confirmable delivery of value to others and mutual benefit from doing so. This month, I’ll cover the first of them, Investigation, with the other 2 elements, Assessment and Exchange, on-tap for June. While this may seem like a proven ploy to retain your interest for our next installment, it’s more of an acknowledgement of the time necessary for practitioners to make notable headway with this initial duty. There is, simply, no shortcutting this first step.

Step 1: Investigation
Most people can easily recall an instance—or even an intrusion—when we were offered a dramatic promise of help in an initial conversation or through unsolicited correspondence. It might have been a pledge for more website traffic, happier customers, cheaper shipping options, increased efficiency with payroll processing . . . bigger muscles, a smaller waist, better neighbors, happier kids, less traffic—or all of that and more. And we can admit that when the offer is exceptionally creative or the database blast lands at just the right time—when we do, indeed, have tangible pain or frustration that could be alleviated by the promised result—we might ask the salesperson a probing question or click the accompanying link to learn more.

But…

Without knowing you, here is what I do know about you: it is rare you would respond in this way to such offers. And it is no different for the person on the other side of your present advances to initiate, increase or intensify a relationship. Although a rightful byproduct, the work associated with Value Creation is not the accumulation of sales leads. And it has absolutely nothing to do with the number of uninvited calls and messages made and sent. Any claim to provide a distinct benefit without knowing more about the behavior or actual needs or wants of a prospect is likely thin. And it is undeniably shortsighted. There is published research from both Deloitte and McKinsey in the last 2 years that illustrates how customized connections and solutions best move people and businesses forward. There is also big money that reinforces these findings. We have seemingly transitioned from the once-groundbreaking B2B selling principles found in the now decades-old book, Strategic Selling, to a customer relationship management (CRM) software industry with more than $1B in annual revenues. Business development and relationship building are big businesses on their own!

But whether you begin with a time-tested selling plan or an investment in a new cloud-based and AI-driven software, the first step is the same. And here is what we need to remember and operationalize:
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Effective Value Creation begins with a thorough examination of where and how we can uniquely create value for others through ourselves or the product(s) with which we are associated.
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This referenced examination, my friends, is the INVESTIGATION. And embracing the often-heard comments about whodunit mysteries, we should very much employ the common investigative principles of detective work.
• Research completed with considerable depth,
• Discovery of helpful clues not likely residing in plain sight
• Continual consideration and confirmation of seemingly established facts.

Thoughtful Questions, Diligent Listening

With an Investigation, the intent is to unlock solutions and reveal new possibilities for those we wish to serve. The foreteller of success is predictable—but it is not easy. This is because most of us like to talk more than we like to listen. And most of us prefer to be the professor, instead of the student. But despite these tendencies, the degree in quality of the investigative work is entirely commensurate with the quality of the questions presented and the research completed. Whether we are having coffee with a prospective client or generating input for AI-led research on an existing customer, depth matters. We must probe. We must persist. In many instances, we must find something that others believe isn’t there or doesn’t exist. Our growth opportunities emerge when we discover the desires of our prospective clients. And to arrive at this lucrative destination, we must habituate thoughtful queries, while simultaneously listening, researching and studying intently. It is a “curiosity first” approach.

When Does It End?

To be complete, an Investigation undertaken for Value Creation must achieve the following:

1. An accurate sense of the required deliverable to be of “value”

2. An appropriate estimation of the impact it needs to have to be considered of “value.”

With this dual-requirement in mind, we ultimately peer beyond the initial desires discovered. Our thoughtful questions must also move us toward the patron’s vision of eventual success or improvement. It’s simple: When we guide others toward or to their vision, we deliver the promised value to them. Their vision cast IS our value created. Seriously. If “Value Creation” was not a phrase already ingrained in the vernacular of highly compensated consultants, we (literally) could refer to it as “Vision Creation” – and it would mean the same thing!

In the end, Investigation directly connects the requirements listed above to a vision we come to fully comprehend. Moreover, when we consider “an appropriate estimation of the impact” (per the second requirement), this determination should be objective. We should know exactly what success looks, feels and measures like. As a footwear retailer, value for an individual Guest who starts with, “I want to leave with the most comfortable shoes I’ve ever owned,” is as easy to interpret as it is for a bulk purchase deal with a local school that reflects an Athletic Director’s desire for, “every coach to be fitted in matching, color-appropriate athletic shoes by the time their respective pre-season begins.”

Final Words of Investigational Caution

Investigation is not surface-level research. It is a deliberate effort to understand whether a prospect legitimately represents a viable opportunity for value creation.

For service professionals, this means developing a disciplined approach to gathering insight across several dimensions:

• Operational Realities: How does the prospect currently function? What meaningful assets and triumphant moments already exist? Where are the inefficiencies, bottlenecks, or missed opportunities?

• Strategic Priorities: What are they trying to achieve in the next 12–36 months?

• Financial and Philosophical Drivers: How is value measured? Is it revenue growth, cost reduction, risk mitigation, or time savings? Or is it something connected to an organizational imperative or personal preference?

Always keep in mind that the goal of Investigation is not to impress—it is to inquire. This kind of investigative work never includes prepared solutions. There will be time for that (come back next month for Part II). To avoid a potential overreach in any initial encounter, you must keep your preconceived notions of how you can help unpacked! Instead, allow your advanced preparations and previous experience to astutely guide your questions. Whether your opportunity is a fully anticipated lengthy conversation or an entirely unexpected brief exchange, the best “Investigators” seek only to learn – not to sell or solve – during initial encounters.

Lastly, there is no reason to conceal an intent to use the knowledge gained through your Investigation from your intended or prospect. In fact, next month we’ll demonstrate how the very words used during the initial conversation can serve as a beacon for both impending follow-up and eventual evaluation. And it should be a rightful source of motivation and pride that this crucial step of Investigation girds a compelling plan to create customized value for those who deserve nothing less.

It also provides a foundation for the remaining actions in our three-step process. See you next month! In the meantime,

Build it strong, y’all!

For easy access to past installments of The Monthly Mortar, please use this link.