Better, Simpler Strategy

10

Feeling Heard

Value for Employees

Having explored the principal ways in which companies raise willingness-to-pay (WTP)—more attractive products, complements, and network effects—we now turn to the lower end of the value stick to see how companies improve their financial performance by creating value for their employees and suppliers.

Let us look at employees first. Services dominate advanced economies—they contribute almost 80 percent of US GDP—and both their cost and their value to customers are greatly influenced by the engagement of employees. How do you attract a talented and motivated workforce? The joy and satisfaction that workers derive from their job are the difference between their compensation and their willingness-to-sell (WTS). ...