Value Propositions: What Works For Successful Companies

Nothing is more important for a company than having a clear value proposition that explains why customers should buy its products or services instead of buying them from a competitor or buying products and services in another category altogether.

We asked some of our partners to weigh in on how they see companies focusing explicitly on their value propositions. Here’s what they had to say:

Liz Alicea-Velez

Liz is a highly experienced international executive who has run both large and middle market companies and built world class organizations in the U.S., the Caribbean and South and Central Americas.

"The most successful companies that I see focus on the value proposition and live it in every aspect of the business-- not just with employees. For these companies the value proposition is not a slogan or a sign on the office wall. It’s an integral part of their daily mindset and informs everything they do."

Kim Denney

Kim Denney is an experienced Houston area leader with a record of solving top-level problems as an executive with broad responsibilities in the Chemical, Petrochemical, Energy, and Manufacturing industries.

"I definitely believe that those businesses who don't define and clearly understand their value proposition are much less successful than they could be. It may take weeks to hone the messaging, but once they have it down and all the leadership team is describing it in the same way, it helps them become a powerful force in the market place. It also clarifies internal messaging, simplifying what the company does so everyone can understand and act on it, while supporting employee alignment."

Sam Johnson

Sam, a Newport partner in Atlanta, is a seasoned executive with a record of implementing strategies to enhance revenues and profits across a variety of industries. He has particular expertise in assisting clients in redesigning their sales organization and sales management processes.

"I help companies clarify their value proposition by VP by industry sector and target account. This typically involves improving messaging on alignment between market needs and product / service offering. Typically companies struggle to do this. When they do actually go through an exercise to clarify their value proposition, they may still struggle to drive the new definition through the organization effectively."

Guy Kennett

Guy Kennett is Managing Director of Newport Board Group’s practice in South Florida. He has extensive experience developing mobility strategies and mobile apps.

"Value propositions are getting the same heightened attention that mission statements did 10 years ago. Leadership needs to convey what a company does, how it does it and what the critical success factors are. Large companies are good at this. Smaller firms, which tend to be more dynamic and informal, may have problems getting everyone on the same page."

Art Medici

Art Medici has a diverse background as an executive leader in e-commerce, high tech, telecom and information companies. His experience spans startups, high growth small/mid cap firms and global leaders like Thomson Reuters.

"A quality message that is easily repeatable is essential. Everyone in a company should be able to deliver a 60 second "soundbite" that delivers a well-crafted message."

Billie Otto

Billie is a Newport partner in the Pacific Northwest who has been Executive VP and CIO of TrueBlue Inc. (NYSE: TBI) the largest industrial staffing firm in the U.S.

"Small companies who can get all their key employees in a room on a daily basis and communicate what is important now can be industry disruptors who threaten the position of large, slow moving, less efficient companies. CEOs who can scale clarity of purpose are much more successful at combating inefficiency. Communicating and over-communicating (creating clarity) is exhausting but very critical work particularly in times of high change."

Ted Parrish

Ted Parrish is a Newport partner in Dallas. His background in advisory services includes solving strategic and operating problems for banks, financial service companies, manufacturers, distributors, retailers and transportation companies.

"Value Proposition" is a business school term that is not always considered a meaningful factor in most middle market firms. However, if one looks at what they are worried about, there is a clear path to engaging middle market firms on the concept of value proposition. Product reliability, price, service organizations, overall capabilities (to name a few) are all day to day concerns. Helping a CEO of a middle market firm to rethink their value proposition requires breaking it down to its main component parts. Only after taking a ground level view of the subject (such as asking the CEO what their customers care about the most) can a middle market company start to address the higher level strategic concept of value proposition."

Kevin Poole

Kevin Poole is a seasoned leader with diverse experience as both a senior advisor to CXOs of middle-market firms, and as an operating executive at a Fortune 500 company.

"The best companies gain market share by understanding, communicating and exploiting their "secret sauce" better than their competitors. It doesn't matter whether you offer a "better" widget if you can't communicate why it is better in a language your target audience will easily understand."

Patrick Worsham

Patrick is a Newport partner in West Florida who has top executive team experience ranging from the Coca-Cola Company to a privately-owned, mid-sized wholesale distributor and a start- up advertising enterprise.

"Smart companies are particularly alert to redefining their value proposition based on feedback from customers and prospective customers as well as encouraging "their people" to look for opportunities to enhance/expand its value."

Do you have a clear and cohesive value proposition?

A clear value proposition fulfills your brands promise to customers. If you're struggling with creating one for your business, download our free eBook and receive expert advice from Newport Partners and the steps you need to take to make your value proposition clear and cohesive.