Porter and Kramer argue that organisations need to operate from a new paradigm. One where value creation is not just about profit generation but also about how organisations can contribute to solving community and societal problems. They are not talking about social responsibility either.
They are talking about a genuine paradigm shift in which profit and social responsibility create equal value and they argue that it is possible to create such an organisation.
Shared value provides value to the organisation achieving its objectives, provides value to the employees of the organisation in helping them to contribute to worhtwhile projects and provides value to the broader community in contributing to solving social problems.
You can access the full article here.
Establishing the skills to create an organisation that matters is paramount to being able to create shared value. Yet most organisations are unaware of the skills required to undertake such a paradigm shift. Developing the skills to dialogue is one of the critical skills required. You can learn more about the seven skills of dialogue here.
What are your experiences of creating shared value?
Visit Gary at http://garyryans.com