What are the Role of Value in Strategy?

The basic premise of strategic planning and management is to lead activities that yield great value. Understanding how an organization creates value with its mission is the first step. By value we are not talking about cultural values; we are referencing the value it brings to its end customer or stakeholder. What causes the organization to be successful for its customers/stakeholders—is its value. How well is it achieving its mission, and does its mission still serve its customers/stakeholders?

 

Value Chain

The value chain is another model by Michael Porter, which describes the process by which a business receives materials and then adds value to the materials through processes that create their finished product or service, which is then sold to customers.

Organizations will conduct their value-chain analysis by looking at the steps in their products that are employed to create their product or service and then identifying the way to increase the efficiency of the production chain. The end goal is to create maximum value for the least possible cost, which creates the organization’s competitive advantage. Porter’s concept of the value chain demonstrates the interconnections of various functions in delivering value to the end customer or the organization.

Primary activities, which will vary according to the type of organization’s activities, contribute directly to the value that is created for the customer. An example is a food manufacturer that uses distributors and retailers for its product. The value of the primary activities depends on the secondary activities that provide services to the primary functions. HR administration of most HR functions will fall within this area, as will finance and IT.

A strategist, be it an HR professional or an internal or outside consultant, needs to understand the flow of creating value. They need to know which activities in the organization are considered central to its mission, reflecting its core activities, and which ones are the
most profitable activities or could be profitably outsourced.

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Sharam Kohan
Sharam Kohan

Sharam Kohan: Biography

Sharam Kohan is a seasoned professional with an extensive background in law, human relations, and organizational leadership. Currently a degree candidate for an LLM at UC Berkeley Law, Sharam brings a unique blend of legal education, hands-on experience, and a deep commitment to social justice and human rights.

With a career that spans diverse sectors, Sharam's expertise extends far beyond the classroom. He has served as a Human Relations Commissioner, contributing his leadership to Alameda County’s Human Relations Commission, where he worked on initiatives to improve community relations and promote equity. His dedication to social change is also evident in his philanthropic efforts as a donor to organizations like FACES SF, which provides vital resources and support to the Bay Area’s underserved communities.

An advocate for labor and employment rights, Sharam holds a specialization in Employment Law from Temple University School of Law, which has furthered his ability to navigate complex legal frameworks. His professional journey includes leadership roles across human resources and operations, where he has honed his ability to manage teams, shape organizational culture, and implement effective strategies that drive success. He also holds SHRM certification, further solidifying his expertise in human resources management.

As a writer and thought leader, Sharam has authored multiple works that delve into complex philosophical and legal topics. His books, Judgment, a Priori Itself and Sartre’s Conception of Freedom, explore the intersections of law, philosophy, and human freedom, blending his academic background with a passion for intellectual inquiry. These works have garnered attention for their thoughtful analysis and exploration of complex ideas, establishing Sharam as a respected voice in both legal and philosophical circles.

Though not a traditional legal scholar, Sharam’s interdisciplinary approach to understanding law and society has made him a sought-after commentator on topics ranging from legal theory to organizational dynamics. His writing can be found on various platforms, including his blog at Harvard, where he shares insights on law, politics, and social issues.

Sharam Kohan is a dynamic and forward-thinking professional with the knowledge, experience, and passion to contribute meaningfully to the legal, social, and business landscapes.

For more on Sharam Kohan’s work, visit his blog at archive.blogs.harvard.edu/kohan and his author pages on Amazon, including Judgment, a Priori Itself and Sartre's Conception of Freedom.

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