The Value Motive: The Only Alternative to the Profit Motive

About The Author ix

Preface xi

Introduction xix

1 Profit Is Not a Dirty Word But Value Is Much Cleaner 1

Is profit the best way to allocate scarce resources? 1

Profit can be a very emotive word 7

The Microsoft Paradox 11

Not-for-profit? Does that mean not-for-value? 17

Profit is an increasingly unpopular king 22

2 Value – A Very Slippery Word Indeed 29

Defining value 29

A working definition of value 34

Basic value 37

Moving on to added value 41

Private equity partners – value adders or asset strippers? 44

The value motive already exists 47

Value as a distillation process 51

Declaring value in a public statement 54

The value agenda 62

A value statement for a commercial company 63

A value statement for a public sector organization 68

‘Intangibles’ confuse the issue of added value 71

3 This Powerful Motive Force We Call Value 77

Harnessing the power of motive 77

Value means output, not input 80

Defi ning value as an economic system 85

Does the capitalist system deliver the best value? 88

When we say value we should really mean it 92

A holistic value system for everyone 96

4 Value Has to Be The Raison D’être For Every Type of Organization 101

All value is good 101

Value is the raison d’être of all organizations 103

Corporate social responsibility (CSR) and the ‘triple’ bottom line 106

Social enterprise 117

Is the public sector an obsolete construct? 120

5 Organizational Performance Measurement Has to Measure Value 127

Turning human activity into value 127

The advent of the scorecard 130

The EFQM business excellence model 134

Agreeing value priorities using the 3 Box System 136

The gulf between performance measurement theory and practice 142

Activity, performance and added value measures 150

Taking a fresh perspective on the purpose of performance measurement 153

Measuring and managing ‘intangibles’ 156

E-valu-ation 161

6 Value Is Essentially A People Thing 167

A fresh approach to people management 167

Measuring the value of people 171

Debunking the employee–customer–profit chain theory 176

Replacing performance management with value management 178

Managing value holistically 185

Valuing people ‘intangibles’ 187

7 The People Measurement ‘Box’ 193

Only meaningful measures count 193

People measurement is a really serious matter 199

Does diversity add value? 205

Human capital management, a revolution in management thinking 210

People – are they personnel, human resources, assets or capital? 214

Human capital measures and indicators of value 216

8 How The Value Motive Could Upstage The Profit King 223

The value motive is leadership 223

The politician’s definition of value 231

The first, second and third sectors have to become one 236

Value special cases and dead losses 241

Value management education 245

Auditing the value motive 249

A new management discipline – valuing the human contribution 252

Index 259