How to Fix Capitalism
and unleash a new wave of growth.
Harvard Business Review January - February 2011
By MICHAEL PORTER & MARK KRAMER.
Measuring Shared Value.
How to Unlock Value by
Linking Social and Business Results.
Visualizing and Mapping Shared Value
with Vector based Hybrid Value Metrics, combining Business and Social aspects, monetary and nonmonetary value indicators and measures.
Business is caught in a vicious circle.... The purpose of the corporation must be redefined around CREATING SHARED VALUE.
Despite the widespread embrance of the shared value concept, however, the tools to put this concept into practise are still in their infancy. In particular, a new framework for measurement that focuses on the interaction between business and social results is among the most important tools to drive shared value in practise....
When companies do not understand or rigorously track the interdependency between social and business results, they miss important opportunities for innovation, growth, and social impact at scale.
While shared value measurement is still in its infancy, leading companies are each of these four steps to unlock new value from measurement.
1. Identify the social issues to target
2. Make the Business Case
3. Track progress
4. Measure results and use insights to unlock new value
Next Value Paradigm (vector based metric system).
Sample with five clusters (products, business units, markets....). That's enough for now....
Two axis combined. x = spending on customer services, y = customer's perception of value.