The Value Motive

Our market system has evolved in line with capitalist philosophy, and at its heart is profit. But while profit can be a powerful motive, it is not always used responsibly and, in the worst cases, this can have damaging effects at a wider level. The calls for a corporate conscience grow louder, but no one has yet suggested an alternative to profit that people find as compelling. Profit is here and now. In this climate, the solution is to refine the profit motive, not replace it. We all value things, and we re all motivated by what we value. If value could replace the profit motive, it would reconcile the interests of CEOs, shareholders, citizens and government. Profits would still rise but at the same time society would gain value. This book is a call to manage for maximum value to follow The Value Motive. Kearns Endorsements "e;In 'The Value Motive,' Paul Kearns clarifies the confusing concept of 'value' and shows how it can be used to transform thinking and action in organizations. Paul's books are always stimulating and controversial, and this one is no exception. If you are interested in creating more value in your organization and willing to have your existing mental models challenged, then you should read this book!"e; Dean Spitzer, Performance Measurement Thought Leader, IBM Research, and author of "e;Transforming Performance Measurement"e; USA "e;I have worked with a host of HR professional over the years. To date I know of noone that compares to Paul when it comes to presenting the issues and challenges of managing human capital and providing practical approaches for doing so. Like his past books, The Value Motive, brings clarity to a world of HR, which often is filled with disarray and recommendations that tend to be driven by political correctness rather than by the intent to produce value. Paul's discussion of value as a driving force in organizations (in addition to profit) brings together the worlds of for and not for profit organizations. It also provides an overarching theme that includes the best interest of all stakeholders, customers, community and shareholders alike. This certainly represents a very much needed approach."e; Finnur Oddsson, Ph.D., Director of MBA Programs & Executive Education, Reykjav k University, Iceland "e;This is a timely, forward-looking, and convincing exposition delving into why value is a better determination of sustained ROI than profit. Paul provides simple, yet valid methodology regarding how much value is added by any organizational activity. His writings are a must for anyone measuring the true effectiveness of people development, an organization s primary value-added activity."e; Tery Tennant, Attainment, Inc, USA

Our market system has evolved in line with capitalist philosophyand at its heart is profit. But while profit can be a powerfulmotive, it is not always used responsibly and, in the worst casesthis can have damaging effects at a wider level. The calls for acorporate conscience grow louder, but no one has yet suggested analternative to profit that people find as compelling. Profit ishere and now.In this climate, the solution is to refine the profit motivenot replace it. We all value things, and we're all motivatedby what we value. If value could replace the profit motive, itwould reconcile the interests of CEOs, shareholders, citizens andgovernment. Profits would still rise but at the same time societywould gain value. This book is a call to manage for maximum value to follow The Value Motive.Kearns Endorsements"In 'The Value Motive,' Paul Kearns clarifies the confusingconcept of 'value' and shows how it can be used to transformthinking and action in organizations. Paul's books are alwaysstimulating and controversial, and this one is no exception. If youare interested in creating more value in your organization andwilling to have your existing mental models challenged, then youshould read this book!"Dean Spitzer, Performance Measurement Thought Leader, IBMResearch, and author of "Transforming Performance Measurement"USA"I have worked with a host of HR professional over the years. Todate I know of noone that compares to Paul when it comes topresenting the issues and challenges of managing human capital andproviding practical approaches for doing so. Like his past booksThe Value Motive, brings clarity to a world of HR, which often isfilled with disarray and recommendations that tend to be driven bypolitical correctness rather than by the intent to produce value.Paul's discussion of value as a driving force in organizations (inaddition to profit) brings together the worlds of for andnot for profit organizations. It also provides anoverarching theme that includes the best interest of allstakeholders, customers, community and shareholders alike. Thiscertainly represents a very much needed approach."Finnur Oddsson, Ph.D., Director of MBA Programs &Executive Education, Reykjavík University, Iceland"This is a timely, forward-looking, and convincing expositiondelving into why value is a better determination of sustained ROIthan profit. Paul provides simple, yet valid methodology regardinghow much value is added by any organizational activity. Hiswritings are a must for anyone measuring the true effectiveness ofpeople development, an organization's primary value-addedactivity."Tery Tennant, Attainment, Inc, USA

About The Author ixPreface xiIntroduction xix1 Profit Is Not a Dirty Word But Value Is Much Cleaner 1Is profit the best way to allocate scarce resources? 1Profit can be a very emotive word 7The Microsoft Paradox 11Not-for-profit? Does that mean not-for-value? 17Profit is an increasingly unpopular king 222 Value - A Very Slippery Word Indeed 29Defining value 29A working definition of value 34Basic value 37Moving on to added value 41Private equity partners - value adders or asset strippers? 44The value motive already exists 47Value as a distillation process 51Declaring value in a public statement 54The value agenda 62A value statement for a commercial company 63A value statement for a public sector organization 68'Intangibles' confuse the issue of added value 713 This Powerful Motive Force We Call Value 77Harnessing the power of motive 77Value means output, not input 80Defi ning value as an economic system 85Does the capitalist system deliver the best value? 88When we say value we should really mean it 92A holistic value system for everyone 964 Value Has to Be The Raison D'être For Every Type of Organization 101All value is good 101Value is the raison d'être of all organizations 103Corporate social responsibility (CSR) and the 'triple' bottom line 106Social enterprise 117Is the public sector an obsolete construct? 1205 Organizational Performance Measurement Has to Measure Value 127Turning human activity into value 127The advent of the scorecard 130The EFQM business excellence model 134Agreeing value priorities using the 3 Box System 136The gulf between performance measurement theory and practice 142Activity, performance and added value measures 150Taking a fresh perspective on the purpose of performance measurement 153Measuring and managing 'intangibles' 156E-valu-ation 1616 Value Is Essentially A People Thing 167A fresh approach to people management 167Measuring the value of people 171Debunking the employee-customer-profit chain theory 176Replacing performance management with value management 178Managing value holistically 185Valuing people 'intangibles' 1877 The People Measurement 'Box' 193Only meaningful measures count 193People measurement is a really serious matter 199Does diversity add value? 205Human capital management, a revolution in management thinking 210People - are they personnel, human resources, assets or capital? 214Human capital measures and indicators of value 2168 How The Value Motive Could Upstage The Profit King 223The value motive is leadership 223The politician's definition of value 231The first, second and third sectors have to become one 236Value special cases and dead losses 241Value management education 245Auditing the value motive 249A new management discipline - valuing the human contribution 252Index 259