Peter Cohan, in his book Value Leadership, brings together the numbers people and the culture people with a rationale and clear treatise. He then offers an effective tool to measure the results of this balanced and effective leadership stance. He takes the traditional business analyst's quantitative factors (market share, revenues and profit, balance sheet strength and more) and combines them with critical qualitative factors (quality of communications, employee satisfaction, customer service and more) to create a numeric score which can be used to assess current business functioning and to plan for strategic and tactical improvements. This measure alone is a great tool for business leaders and their managers, but it is what is measured that defines this books common sense standard. Mr. Cohan has created a way for business leaders to understand and measure their business' value. For anyone who has bought, sold or merged a business, or who invests in stocks, knows that the most elusive question is "what is the value of this business?" Mr. Cohan's "Value Quotient" is the most complete answer to the value question that I have seen. It works well for active business managers and for investors.
It is my belief that "value' will emerge over the next ten years as the most important factor in determining a business leader's success. Value encompasses the quantitative and qualitative factors that often appear to be at war with each other. How do you run a highly profitable business while also maintaining an effective culture? Short-sighted business leaders who are under performance pressures often boost their numbers at the expense of their people, while the great business leaders can effectively manage both their numbers and their people. In my new book Corporate MVPs I had the opportunity to talk with many great business people who spoke of the importance of building and conserving their most valuable performers. These business leaders focus on building value as their prime responsibility. Peter Cohan's Value Leadership is the book that will help all business leaders build the value of their businesses and of themselves.
Cohan's framework makes it easy for managers in even the most complex companies to identify where their weaknesses are and address them. The book lays out a detailed, step-by-step guide that walks managers though all the activities and tactics that need to be considered in order to noticeably impact their company's bottom line. As a former general manager in a software company, I feel that sections of this book, such as "experimenting frugally," can really inspire a company to be more creative in identifying profitable paths to growth which it might not otherwise consider.
The book is invaluable as it enables managers to rise beyond the daily responsibilities of their jobs to identify levers that can have a truly significant impact on their companies.