Dear Editor,
Atrue leader will never use money merely to create more wealth and profits, for he knows that ultimately what counts is the kind of value he creates for companies, people and society. Yet money still gets so much attention and occupies pride of place on pedestals along with gold coins and jewellery. Granted, money and organised banking are one of our greatest inventions, and more innovations such as digitisation step up velocity and hasten economic growth, but have you ever stopped to wonder where we are headed if acquisition of monetary wealth is our sole aim? By rule of thumb, over half the worth of an enterprise worldwide is in intangibles. In Asia, it is approximately one-third and is increasing fast. Intangibles include goodwill and brand equity. Of late, this worth includes intellectual property and the internet.
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But if one were to consider the more precious forms of value that centres around human, social, relationships, and cultural and ethical aspects, there is greater clarity about why money must serve a much higher purpose in the entire chain of value-creation.
Money can become a means to create real abundance, making the business enterprise a greater force for the common good. In this journey, the first requirement is that money should address human and natural value to serve life and its eco-support systems. To make this happen, one needs astute mindfulness, discipline, imagination, creativity and innovation to come up with new, value-based processes that will deflect the course of personal choices, business strategies and decisions to move away from superficial changing fashion trends in marketing and technology. Global management-accounting agencies and others are building bridges through guidelines, standards or principles to bring about a more accepted way of doing this. Professionals who wish to move in that direction can certify through courses recognised worldwide; some have already written annual value reports, and their governments have notarised these approaches. The ‘big four’ consulting firms have brought the world’s best brains to provide thought-leadership on this subject. Value is looming large now at our doorstep!
Enlightened leaders are already combining systems with culture and are cultivating reinforcing habits, using wisdom and compassion to create holistic business processes. The concept of value will now have to be discussed actively in meetings, and be taken into account while making critical decisions. In other words, it has to be part of the tools used at negotiating tables. These will help create a value-based context and relevance in everyday life and at work. This way, ethics and care will always be clubbed together. Leaders who do this will ensure that value scales business ventures and transforms supply-chains. The story of John Mackey’s Whole Foods Market is exemplary. Here is an industrial patriarch who once stated that what is good for India is good for his enterprises! Leaders could set examples of being responsible custodians of wealth in their businesses,rather than owning and controlling it for personal gain! This means creating greater freedom, besides developing employees and enhancing their sense of wellbeing. Proactively, this translates into programmes on sharedvalue with all customers, dealers, employees, contractors, suppliers, investors and society. Many in business circles, who understand capitalism in its fullest consciousness and potential are now unleashing a new heroic spirit of business into their enterprises. The question now really boils down to what you will choose as the year unfolds: money or value?
Anant G Nadkarni
Via-e-mail
