Building long-term, sustainable growth requires more than just orchestrating value or networks. While the Value Orchestration Lifecycle ensures the creation and adaptation of value, and the Network Orchestration Lifecycle focuses on building and organizing networks of stakeholders, these elements alone are not enough to drive lasting impact. These lifecycles risk focusing on short-term profits or isolated customer satisfaction without a guiding principle.
The missing piece is the principle of generating shared value, a mindset that seeks to amplify positive impact and mitigate adverse effects for all stakeholders. When value orchestration, network orchestration, and shared value work together, businesses can build Shared Value Networks—ecosystems that thrive on mutual benefit and drive equitable, sustainable growth.
1. The Value Orchestration Lifecycle
This lifecycle is focused on creating, delivering, and continuously enhancing value. However, without the principle of shared value, it could still operate with a short-term profit mindset. Shared value ensures that this lifecycle looks beyond profits toward long-term, positive impact.
2. The Network Orchestration Lifecycle
The network lifecycle involves organizing diverse stakeholders and forming connections. On its own, this could solely focus on customer value. However, the principle of shared value becomes a force for building inclusive networks that serve the needs of all stakeholders, fostering sustainable relationships.
A familiar example of Network Orchestration is the Customer Engagement Lifecycle. It represents a pivotal step in understanding and optimizing a business’s front-end operation. This lifecycle assesses every interaction between the company and its customers, serving as the foundation for RoundMap’s broader, unified framework.
3. The Principle of Shared Value
The glue that binds both orchestration lifecycles is the principle of shared value. This principle shifts the focus from isolated success to collective impact, amplifying positive outcomes while mitigating any negative consequences. They ensure that both value creation and networks serve not only the business but also society at large.
These are the principles of Shared Value:
Interdependence of Business and Society: Businesses do not operate in isolation; their success is deeply intertwined with the health and well-being of the communities and environments in which they operate. Shared Value recognizes this interdependence, aiming to address societal needs while driving business growth.
Value Creation for All Stakeholders: Shared Value emphasizes creating value not just for shareholders but for all stakeholders—customers, employees, suppliers, communities, and the environment. By aligning business goals with society’s broader interests, companies can achieve sustainable growth.
Integration of Social and Environmental Goals into Core Strategy: Rather than treating social and environmental concerns as separate from business operations, the Shared Value principle integrates these concerns into the core business strategy. This means addressing ecological sustainability, equitable labor practices, and community development as part of the company’s business model.
Innovation through Addressing Societal Challenges: Companies can unlock new opportunities for innovation by addressing societal challenges. This principle emphasizes that solving pressing social or environmental issues can lead to new markets, products, services, and business models contributing to societal progress and profitability.
Collaboration Across the Ecosystem: Shared Value encourages businesses to collaborate with various stakeholders, including governments, non-profits, and other companies. This collaborative approach helps to leverage collective strengths and resources, driving systemic change and creating broader societal impact.
Long-term Sustainable Success: Shared Value moves beyond short-term financial gains and focuses on long-term, sustainable success. By building solid relationships with stakeholders and addressing systemic societal issues, companies can create lasting positive impacts that strengthen the business and the communities they serve.
These principles guide businesses toward profitable and socially beneficial practices, fostering an ecosystem that supports equitable and sustainable growth.
The Culmination: Shared Value Networks
When these three elements align, the result is a robust Shared Value Network—a system where businesses, stakeholders, and communities grow together. This approach creates more than profit or customer satisfaction; it fosters a lasting, positive impact on all parties involved, enabling long-term, sustainable, and equitable growth.
Shared Value Networks are about more than just doing business—they are about creating a future where businesses, communities, and ecosystems thrive together. By orchestrating both value and networks, RoundMap provides a blueprint for organizations to achieve long-term success while contributing to the greater good.
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