What organization is Your Value Proposition?

Value proposition is what an organization does, that will cause their clients to realize tangible benefits through the use of their product or service. Value proposition is more than just the service you provide; or how you sell, service, or distribute it. It's how you string all those components together, to best serve your clients and deliver them real value. Value proposition can be both a descriptions of how your organization adds value today, and also a concrete statement of your vision for the future.

Without a clearly articulated, well-understood, statement of value proposition, it's impossible for you to describe a compelling vision and strategy for your company, or create effective segmentation, or distribution strategies. And, if you can't tell your employees how your company adds value for clients, how can employees be expected to add value in everything they do?

Understanding value proposition is not just an exercise for profit oriented companies. Many health care organizations for example have the burden of regulation, and complex value chains that are more difficult to describe. It's here that many organizations struggle, because managers often perceive that anything they are doing now, falls squarely within their value proposition.

Value proposition is much more than an elevator pitch or a slogan, but it is important that you can boil your value proposition down to a concise and compelling statement. It's often when companies try to articulate their statement of value proposition in a way that others can understand it, that the tough questions begin to surface.