Are you a profitable, sustainable and responsible organisation is the key question we ask our clients to ask themselves all the time. You can be profitable or sustainable but not responsible and vice-versa. It's very important that you have a business model that makes your organization profitable, sustainable and responsible simultaneously.
Four Arms of Value® Assessment (FAVA) is a LAM developed assessment model to measure business model of an organization in terms of profitability, sustainability and responsibility using employee value, consumer value, shareholder value and social value (four arms of value) matrix. We started by asking a simple question, how can an organization be profitable, sustainable and responsible simultaneously? The reason we asked the question was due to our interest in a whole lot of organizations like Lehman Brothers, Enron, Nokia, Blackberry etc. These are organizations that created huge amount of shareholder value and yet took an ugly fall. Four Arms of Value® is the answer to the question raised above. All the above mentioned organisations ignored at least one arm of value at certain point which led to their fall. Their business models were flawed so was Michael Porter's Five Forces and many other matrices/models developed by typical consulting firms like McKinsey, BCG, Bain etc. So what is the Four Arms of Value business model all about? We believe that every business must create Employee Value first to create Consumer Value which leads to Shareholder Value creation and ultimately must invest in creating Social Value. All of this must be done simultaneously!
BLACKBERRY’S DYING INSPIRATION DUE TO LACK OF FOCUS ON EMPLOYEE value AND CONSUMER VALUE
Traditional Business Model Vs FAV Business Model
How does fava work?
Four Arms of Value® Assessment applies to any sector, size and or organization and is extremely helpful to find out what tomorrow might look like. It's a way to find out if your organization is build to last. Through Four Arms of Value® Assessment we assess the wellness of each arm of value in your organization and then build on that. We use world class methodologies that aren't typical consulting methodologies to assess your Four Arms of Value®. What the assessment does is gives you a clear idea of level of profitability, sustainability and responsibility of your organization. Because its only an assessment and we haven't done any consulting yet we charge a flat fee independent of the size or sector. The assessment last between 3 - 7 weeks depending on the sector and size of the organization. Once we have concluded the assessment we then work closely with you to build Four Arms of Value® business model through our consulting programs. Based on your vision we help you align your organization's business model. The fee paid for the assessment is then adjusted in your consulting services in the future so you don't actually pay for the assessment.