The day corporate America realizes its value creation failure

Turletti leads sustainable efficiency and profitability across organizations through innovation, management and marketing@ ROI Marketing Academy

It’s a very cool November morning in Sedona and Danny picks me up on a dark night full of sparkling stars. He and I are about to embark on one of the most enjoyable flights possible: watching the sunrise from a hot air balloon.

On the way to the set, we chatted casually about how everything in America—from gas to meat to diapers—has gotten so expensive lately. In addition to the increased cost, we all felt we noticed a drop in service and value. It’s as if the former standard of excellence has become a premium feature; you now only get it if you pay for it.

Talking to Danny that morning in Sedona wasn’t the first time I’ve had a conversation with someone who feels this way about the current state of service. It’s something I’ve personally verified everywhere I go and with everyone I meet. It’s clear that consumers feel that business management doesn’t prioritize efficiency, quality, or accountability to their detriment.

Having done business in multiple countries, I can’t help thinking that the tendency to live with these changes is uniquely American. After all, the 80 million international tourists who come to the U.S. each year are looking for the lowest prices possible through price hikes. In 2019, international tourists spent $233.5 billion, supporting an industry that created $1.9 trillion and 9.5 million jobs. Insufficient value creation puts revenue and multiple industries at risk. This is all the more urgent as international and local tourists alike realize they have many other travel options – and megaphones on social media to spread their stories and reviews.

Three things companies are forgetting

Faced with rising inflation, companies need to be aware of the relationship between customer behavior and their business shortcomings.

1. The collective influence of consumers on brand perception: Sometimes we forget how individual actions and interactions add up over time. One person complaining publicly about a bad service or product may seem like a drop in a pond, but millions of drops can create a pond.

2. People can simply choose to stop participating in: Warren Buffett once said, “Price is what you pay for, and value is what you get.” When prices seem exorbitant compared to the value consumers get, they can — and do — move on to something better. If businesses don’t start acknowledging this reality and actively working to combat it, they will lose their customer base.

3. The importance of quality service cannot be overemphasized: In the world of management, it feels like excellence has become a “nice to have” goal when it should be the operating standard. Simply striving for excellence is not enough. We need to actually produce and deliver it. If excellence becomes the mantra of our production models, we will achieve it. If we aim for it, it just means we don’t have it.

If management keeps looking only at the profit and loss statement, one day they will find that most of the services are done abroad, most of the travel is done abroad, and roughly $5 billion is going to disappear every day. It’s time to remember that business profitability is more than just making money. It’s about how you do it and what impact it has on your business, your customers and society. Most importantly, it’s about value creation for all.

Let’s start an American values ​​movement. We deserve it!

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