First things first, leadership isn't just about calling the shots. According to Jim Collins, leadership is "the art of getting people to want to do what must be done." This definition urges us to go beyond the conventional models of command and control. How does this tie into money and business strategy? Well, it establishes a guiding principle: "Value and Leadership should frame the way we think and therefore influence our strategic decisions." 

 

Why is this important? Because designing a business around value requires a leadership approach that looks beyond the immediate balance sheet. Instead, it cultivates a vision where profits are not the only metrics for success. Long-term value, or what can be called 'enduring value,' becomes the cornerstone for key performance indicators (KPIs), employee accountability, and team building. 

Do you remember a moment in your business journey where you had to make a tough call between short-term gains and long-term benefits? 🤔 Maybe it involved hiring strategies, or perhaps it was related to business planning. The "ScaleUp Journey" that Kevin Brent talks about is filled with such 'valleys of death' where profitability might see a dip. 

 

However, adopting a Value Proposition that focuses on the long term may sometimes require sacrificing immediate profits. For instance, investing in leadership development or advanced sales techniques can drain your current resources but promise profitable growth in the long run. So, what choices are you willing to make to bring your business vision to life? 

Kevin Brent discusses a phenomenon he calls the "owner's trap," and chances are you might find it relatable. Essentially, it's when business becomes so dependent on you that it loses its inherent value. Signs that you're in this trap include business slowing down when you're not around, or growth plateauing despite your best efforts. If this resonates with you, maybe it's time to question how much your business is designed around enduring value rather than short-term profits. 🤨 

Just as we've discussed, the real shift begins when we refocus our strategic decisions through the lens of enduring value, not just immediate profit. I'm reminded of the time I worked in engineering before becoming a business coach. It was clear that any sustainable engineering project required rigorous planning and a focus on long-term value. Similarly, creating an enduring, valuable business requires a foundation built on strategy and the foresight to execute it. 

 

The road to building enduring value often comes with its set of "valleys," especially when it comes to financial considerations. So how do we navigate this? Cash Flow Management and the Profit First Approach are good starting points. But let's ask ourselves: Are our Marketing Strategies and Sales Techniques aligned with our Business Vision and Value Proposition? Is the Team Building aligned to foster Employee Accountability? Each cog in the wheel, from Business Planning to Performance Feedback, plays a role in this journey. 

 

Now, I'm sure some business owners are wondering how to measure this shift in strategy. Enter Key Performance Indicators (KPIs). These are not just metrics; they're signposts on your road to value. Ask yourself: 

 

Bringing to light the insights on the 8 drivers of value, let's explore a few of them and relate them to our current practices. For instance: 

 

The nature of these questions doesn't just guide you towards maximizing profit; they're fundamentally geared to help you design a business around value. 

 

Here's an example that resonates well. Imagine two business owners at different life stages; one is looking to retire soon while the other has a longer journey ahead. Naturally, their short-term goals could clash, especially if profitability directly affects a retirement payout. But what if the strategy shifted to building enduring value that both could benefit from? Suddenly, long-term investments in Hiring Strategies, Leadership Development, and Business Execution take centre stage. Through Great Conversations, fabulous results can manifest. 

 

The Owner’s Trap as stated before, is another concept that many of us fall into. Many businesses that fall into this trap often find their Business Growth plateauing. It’s time to "Fix What Bugs You" and rethink how business decisions are made. What’s the point of having freedom and control if the business can’t thrive without you? How can you "Grow People" and systems within the organization to take over some of your roles? Once you start making it visual and getting it out of your head, the easier it becomes to identify areas where your business needs to evolve to step out of this trap. 

 

Business Joy comes from running a business that doesn't just give you short-term gains but provides a meaningful, enduring contribution to all its stakeholders. So, ask yourself, "What step can I take today to bring enduring value to my business?" After all, just do it and find out.