Chief Value Creation Officer (CVCO)


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I have been writing about Value Creation. I was asked to define the Chief Value Creation Officer by my readers. I found companies that have Chief Value Officers, trying to improve the Value of the company or the Value to the Investor. The typical way is to decrease costs, and increase market share thorough product proliferation or pushing into the marketplace through price, and through the distribution system. Very few look further into the companies, to see if the company is adding value to the employee and externally to see the value created for the customer (rather than looking at the customer as a sale). A CVCO is more than a Chief value officer.

Keep in mind that the company is dependent on three major stakeholders: Investors, employees and Customers. All three are necessary for the establishment and wellbeing of the company.

People will argue that we do not need one more C level officer. Others will maintain that value creation is the CEO’s job or everyone’s job. Why we need a CVCO is because a business and cultural transformation is necessary to become the best and to create the most value for the investor by creating value for employees and customers, and by making value creation the main role of an executive.

This is why I have written up what a CVCO should do. Please feel free to suggest changes and improvements.

  1. Show executives that Value Creation is the main role of an executive.
    1. This means going beyond just doing your job, or being an efficiency expert or just a good administrator
    2. Becoming aware of Value Creation and Value Destruction
    3. Educate employees and give ideas on Value Creation
    4. Share the Value Creation done by one person/department with others
  2. Build a Value Creation culture
  3. Ensure there is a Chief Employee Value Creator, and create value for the employee
    1. Measure the Employee Value Added
    2. Incorporate Value addition for employees
    3. The role of HR should change to create value
  4. Increase the Value Creation for customers
    1. Is the Chief Customer Officer effective?
    2. Build a Customer strategy
    3. Measure Customer Value added
    4. Increase value to the Customer
    5. Break organisational silos
    6. Ensure Bill of Rights is honoured
    7. Incorporate Customer Circles and a Continuous Customer Improvement Program
    8. Improve awareness and proactiveness of front line people
  5. Ensure Value is being created for partners, supply, delivery chain and unions
    1. Involve all departments
  6. Look at Value Creation for society, and for sustainability
  7. Measure the Value created for investors and Value created for employees and Customers. Ensure you focus on loyalty increase leading to market share and higher profits. Understand the cost savings by becoming more efficient for the Customer and because you make fewer mistakes
  8. Ensure reporting of financial measures, employee value added and Customer Value Added (including employee assets, customer assets) with quarterly results and to Board of Directors

Ideally, the Chief Value Creation Officer should be on the Board of Directors because he cuts across all functions of the companies, and is charged with improving their working and effectiveness, and in impacting the company culture.

Your comments are welcome!

Republished with author's permission from original post.

Gautam Mahajan
Gautam Mahajan, President of Customer Value Foundation is the leading global leader in Customer Value Management. Mr Mahajan worked for a Fortune 50 company in the USA for 17 years and had hand-on experience in consulting, training of leaders, professionals, managers and CEOs from numerous MNCs and local conglomerates like Tata, Birla and Godrej groups. He is also the author of widely acclaimed books "Customer Value Investment: Formula for Sustained Business Success" and "Total Customer Value Management: Transforming Business Thinking." He is Founder Editor of the Journal of Creating Value ( and runs the global conference on Creating Value (


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