"Squeezing customers with hidden fees. Wringing every last drop of productivity out of employees. Obsessing over quarterly harvests without planting anything new. That's not strategy - it's slow suicide. The difference between companies that thrive and companies that hollow out comes down to one simple principle: Create value first, then extract it. Get the order wrong and you're just burning through your own future."
"Value creation is generating something new that benefits others - solving customer problems, improving lives, designing experiences, innovating products and building trust. It's expansive, leaving customers, the organization and the world stronger than before. Value extraction is capturing value for the organization - monetizing products, raising prices, increasing efficiency and using customer data. It's necessary for survival, but without creation, it becomes exploitation."
Many companies strip-mine value by squeezing customers with hidden fees, wringing productivity from employees, and obsessing over quarterly harvests without planting new growth. Value creation generates something new that benefits others: solving customer problems, improving lives, designing experiences, innovating products and building trust. Value extraction captures value for the organization through monetization, price increases, efficiency gains and use of customer data. Employees drive creation through ideas, creativity, empathy and effort; customers enable extraction by giving money, time, loyalty, data or advocacy. Creation benefits customers first and sustains future harvests; extraction without creation becomes exploitation and depletes long-term viability.
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