Some perspective on value capture as a euphemism for price. It’s incomplete. Value can be exchanged in non-monetary ways as well. This is particularly important as leaders think about compensating their team members as individuals value non-monetary things as well as monetary rewards.
There was an interesting exchange during Monsanto’s earnings call yesterday*. Deutsche Bank’s James Sheehan asked how Monsanto saw their “value capture model evolving in the next couple of years”. Monsanto’s CEO, Hugh Grant, started his reply by saying “So I think value capture is a euphemism for price”.
In applying that to your team, remember that people want to be happy. Happiness is good. Actually, it’s three goods: good for others; good for me; good at it. People are motivated by a blend of these three. (Follow this link for more on the secret of happiness per Harvard’s class of 1980 – a little tongue in cheek, but fun.)
Happiness is Good Core Model
Good for me
- Near term pleasure (Enjoyable work/activities, fit with life interests)
- Compensation (Monetary, non-monetary reward, recognition, respect)
Good for others
- Meaning in the work (Impact on others, match with values)
- Share in shaping the destiny (Influence, being informed)
Good at it
- Match of activities with strengths and resources (Support and time)
- Employability (Learning, development, resume builder)
Here’s the point. Money is only part of what people seek and only part of what they seek even within the “good for me” category. A leader that thinks value capture is just about money will miss opportunities for his or her followers to capture value through other currencies.
Note this is an experiment, the first of my “Leader’s Perspective” articles, which will be different than my normal, regular New Leader’s Playbook articles. Those generally focus on one of the ten steps of The New Leader’s Playbook, drawing on learning from specific leaders (who are not PrimeGenesis clients). My “Leader’s Perspective articles will comments on things I see in working with clients or hear from others. Let me know what you think.