The value of an idea lies in the using of it.
—Thomas Edison

I previously defined value as the measure of the benefit realized by achieving a change. What does this mean, specifically, in an organizational context?

As we learn in business school and hear about every day in reports from stock markets, the purpose of a company is to create shareholder wealth. If there were a “Business School 101” course, it would teach us that shareholder wealth is created by creating profits and that profits are created by maximizing revenues and minimizing costs. So ultimately, sources of value in a profit-seeking organization are changes that increase revenue or reduce cost.

Nonprofit and public-sector organizations are a little different than companies that exist to create shareholder wealth. These organizations exist to carry out a mission that ultimately creates utility for their constituents. For example, I had a client with the mission of improving the security of information technology across the Internet. To carry out such missions, nonprofit and public-sector organizations must fund their activities by collecting revenue and minimizing costs. So sources of value for these organizations also include changes that increase revenue and reduce cost, but also include an additional source—accomplishing the mission of the organization.

Aaah…if it were only that easy to increase revenue, decrease cost, and solve world hunger.
While changes ultimately achieve these goals, an organization may benefit in many ways from making changes. Here is a partial list that quickly comes to mind:

Any change that helps the organization respond to the Four Forces acting on it creates value for it. You will need, however, to put the value in the organization’s lexicon for the value to be recognized.

Create value by revenue, cost, and mission. Identify any and all other benefits. Translate value into the language and perspective of the customer.