Monday, May 23, 2016

Shared Value Creation

After reading the article on ‘Shared Value Creation’ by Porter and Kramer, I realized there are some real benefits and opportunities to transforming traditional corporate strategies.  The ‘rethink’ approach to improving society and economic progress by transforming core policies is refreshing.  The positive residual impact of improving employee’s quality of life, environment, and a variety of connected markets that support these initiatives should also serve as a differentiator for those companies that choose to adapt and implement these improvements.  I have seen this transformation within my own company and note a few interesting examples that focus on employee benefits:

Wellness Program:  The concept of leveraging existing health benefits has been more of an ‘opt-in’ approach in the past.  The new focus has expanded significantly and includes extensive education and programs to improve overall employee health to include: nutrition, exercise, wellness check-ups, and numerous other preventative tools.  This program also has a positive ripple effect on employee’s families that would move the needle towards a positive impact on the community and overall society.  This is not just a myopic policy focused on just the employee as we have seen historically

Telecommuting Policies:  Benefits in this program have been realized in areas such as increased productivity (less time commuting = more time to focus on work), environmental improvement (fewer cars on the road and less emissions), and economic (cost savings from less wear and tear on vehicle and lower fuel costs).  Not only do employees benefit, but there are also cost savings that can be realized by a reduction in need for office space and thus reduced brick and mortar expense.

Looking beyond shared value in terms of internal corporate benefits, shared value also focuses on producing products that not just provide a purpose or value to the customer, but also help solve problems that benefit them over a longer period of time and pay dividends leading to better health or financial status.  Companies are also focused on producing products that are ‘green’ with the benefit of using renewable resources that are sustainable and minimize negative impact on the environment. 

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.