In improvement, the green dot suggests that the activity is value added. This concept is where the name of our organization comes from. And yes, our logo is a green sticker. When we place the logo on our content we always ask the question, “Is this value added?”
In the improvement world, there are a lot of tools and resources to help people and organizations in their improvement journey. Sometimes though, more becomes less. Having an endless amount of resources may not always be the answer. In fact, it may be the opposite – causing confusion and over-processing. At Green Dot our goal is to cut through the endless list of tools, techniques, education, and approaches in order to arrive at (and provide) tailor solutions that will deliver the most value to our customers.
Defining value has traditionally compared benefits (financial return) over costs. If the benefits outweighed costs, we said it was “valuable”. This view was often internally focused, meaning the organization benefited because the product or idea was profitable. At Green Dot we don’t subscribe to this method of measuring value, instead we define it through the eyes of the customer. We believe that affordability, quality, and experience all need to live in harmony and need to match the customer’s needs.
Through using the value equation V = (Q +E)/C, success can only be achieved by focusing on all three elements. If you have bottom line pricing, but poor quality, the equation becomes off balance. If you have an array of features and delighters, but in the end the customer’s problem isn’t solved, or new knowledge isn’t gained, then you leave the customer with something that looks cool but does not work. The creation of value can only happen through understanding and delivering on the customer’s definition of quality and experience expectations. Even then, your price point and the customer’s costs (real and perceived) has to be match. When you out perform the customer’s quality and service expectations and are below their costs threshold, you create a value surplus. When then opposite is true, a value shortfall exists.
When you think about the equation there are three outcomes:
Customer’s who experience a surplus are considered “promoters” and will share positive things about their experience. Those with a shortfall are often considered “detractors” who will share negative stories about their experience and detract from your brand. The third group, referred to as “passive” are often brand neutral in that they got what they wanted, but weren’t overly excited by their experience or the quality of the product or service.
In the image provided it is critically important to pay attention to the words “and” and “or”. A customer can only be satisfied if their quality, experience, and cost needs are all met. If any one of those needs go unmet, it is likely that the customer will be neutral or dissatisfied.
Focusing on value is all about being customer-centric. You have to suspend bias of what you think is of value and meet the customer where they are at. If your personal bias puts you too far out in front of the customer’s needs the customer may be left behind by the complexities of the solution, or by the aggressive rate of change. When it comes to delivering value you have to keep an eye on the future while keeping a foot in reality.
At Green Dot we promise to meet you where you are at, seek to understand your needs, and then provide solutions that take you to the next level. Whether you are learning a new skill or solving a complex problem, we want to be your trusted partner that can get you from where you are to where you want to be.