Excellent! In the art and science of business model & company lifecycle analysis, there’s an upward value creation side of the bell curve and a downward “value milking” side of the curve.
In the downward milking side, it takes a crisis (as Foroohar points out) or a very strong leader “bomber” to explode the trend and break out from the downward pull. Only then can the company get explosive lift-off to launch a whole new value-creating lifecycle. It’s certainly not an easy transformation to pull off, but necessary, and the milking company can then catch a new wave of life…..
However — This post peak, explosive transformation can be avoided if there is a true values base to value creation. This is exemplified by leaders like Howard Schultz, Jack Ma or Steve Jobs whose internal values drive company value creation, despite the external ‘milking incentives’ of the street.
The values base of the sustainability movement is a good teacher. The same values that Wes Jackson and Wendell Berry live and write about… that are core to smart/sustainable forestry or farming… work for sustainability in a good business model too. Values and beliefs drive actions — and actions drive results. It’s time to put values back into Value Creation if we want different results for our businesses and economy.