Understand your company’s value chain.
A simple but profound lesson that has helped me throughout my career is understanding my company’s value chain. Simply put, no matter what your position, you need to understand how your employer ultimately makes money.
When we think of companies, most of us think of their end-product—a Chick-fil-A sandwich, an H&M T-shirt, an Amazon everything! The “value chain” is the chain of value-adding activities that bring the product or service to the customer.
As a young crewperson at McDonald’s, I observed the various steps prior to handing that delicious breakfast sandwich to the customer. Days or weeks in advance, someone tracking inventory ordered the ingredients—the frozen sausage patties, eggs, and muffins. Upon arrival, someone had to unload the products into the freezer. Someone kept the small freezers by the grill stocked throughout the day. A drive-thru crew member took the order and payment. The cooks prepared the sandwiches. The “bin caller,” who forecasted the orders so food was always ready and fresh in the bin, wrapped the sandwiches. The drive-thru runner quickly filled a bag with the sandwich, hash browns, and napkins as he delivered the order with a smile to the customer in the car. Each order transpired in under 120 seconds from the time of the sale.
Do you see the many links in this chain? Value was being created every step of the way. If at any step someone didn’t do their job, the entire operation breaks down. The sooner an employee understands the links that make up the chain, the faster he or she will climb the ladder of success.
Three significant benefits to understanding your company’s value chain:
1. Increased purpose and satisfaction.
Understanding the big picture of the value chain makes your job more meaningful. Now you understand that every repetitive or dull task you do is vital to the end product or service your company provides, and you will appreciate and enjoy your work more because of it.
2. Increased visibility to management.
Employers, managers, and supervisors assess those directly under them through a lens of usefulness to the company, and because you understand the company’s value chain, your work will attest to your worth and versatility. In short, your boss will be impressed and will appreciate you more, giving you an edge to available promotions.
3. Increased business opportunities.
When you understand your company’s value chain, you begin to understand how a business operates from start to finish and how it makes money. This knowledge opens the doors for two opportunities. First, you have the opportunity to be an intrapreneur—to find creative ways to make your company more money. Second, you set yourself up for the ability to be an entrepreneur—to start your own business applying the same principles you learned from that company’s value chain.
At an early stage in my career, I learned to see business this way. No matter what the job, seek to understand your company’s value chain. It may even be helpful to draw it out on a flow-chart. If there’s something you don’t understand, ask questions. Learn. Grow. I promise you will turn the heads of your superiors.
Miss any of the 5 Keys to Success that You Didn’t Learn in College?
1. Under promise. Over deliver.
2. Understand your company’s value chain.
3. Develop your executive presence.
4. Build your personal brand.
5. Find a sponsor and know your role as a protégé.