The Heart of the Model
At the Core: The CEO SystemIf identity is the unique combination of characteristics that define a company’s value-creating potential, then making people aware of this intrinsic force is a prerequisite to business. Finding the right ways to express those characteristics draws upon executive’s ability to harness every function every part of the organization, in service to value creation and the long-term profitable growth it brings.
Value creation
Value creation is the natural expression of identity. With Identity-Based Management, the organization is unified in its purpose, clearly understandable to all its constituents, and is cohesive.
Positive momentum
Momentum has its roots in physics, reflecting the quantity of motion of a moving object. Yet, the idea of momentum has broad application in many areas, including the field of identity dynamics. For organizations, it is the strength, or force of identity that, when flowing unimpeded, generates a series of value-creating events, enabling the company to flourish: to fulfill its destiny. When an organization is able to consistently express its identity and generate value, it can be said to be in a state of positive momentum.
Wealth creation
A company in a state of positive momentum has a strategic advantage that allows it to create ongoing wealth – the critical results management sees.
The model is anchored by the CEO System, that is informed by identity and flowing through identity awareness, value creation, positive momentum, and wealth creation to the third power.
These results show up in the three essential wealths (Wealth3):
Economic wealth: including revenue and income growth, margin improvement, and increasing share older returns;
Reputational wealth: for example, a strong brand, broad stakholder trust and loyalty, including people’s willingness to suspend disbelief and give the company the benefit of the doubt when necessary, and an overall positive image;
Institutional wealth: including high-value intellectual property, organizational wisdom developed, stored and shared over time, ongoing talent development, and cultural cohesion, leading to a strong and supportive internal community.
The distinction between value creation and wealth creation is crucial to maintaining the integrity of the CEO System. In short, value creates wealth. To conflate the two is to undermine the dynamics of identity-based management and its prospective impact on the success of the enterprise.
Coming full circle
The power of the CEO System resides in how it functions as a virtuous circle, where the wealth generated by leveraging identity is consciously and conscientiously reinvested in the company to deepen identity awareness and expression.