Jan 3, 2021

What is Value

Consider that Value is equal to your Why divided by your How. Keeping this simple formula in mind can help you find opportunities to increase the value you deliver for your business, or deliver the same value for less cost.

How this works

It makes sense if something changes in your business environment that increases the numerator (the reason Why you are doing something), then the overall value for the business increases. For example, if a business planned on getting into the hand sanitizer market before COVID hit, the Why increased exponentially in March 2020 and the value to the business increased as well.

Thinking about the denominator (How you are approaching the business problem) can provide opportunities to simplify, or change an implementation to deliver the same outcomes at a lower cost. This may consist of attacking the problem in a totally different way by implementing new technologies or novel ideas, or applying agile approaches to create an MVP that is iterated only until the business needs are met.