The next part in understanding an organization is how it is adding value. As the movie “The Founder” shows; a key moment in McDonald’s rise to a global restaurant chain is when the founder is told he’s not in the restaurant business, but in the real-estate business. The real-estate part of McDonald’s was more valuable than the restaurant business. Every organization has examples like this, both of direct and indirect value creation by an organization. They are fun to discover and often tell authentic stories.
Understanding how an organization generates value; allows focus for and growth of this value. Given the right circumstances massive growth can be achieved in a relatively short time by focusing on newly discovered sources of value. These sources can be new technology, new suppliers, a different market, a more efficient production process, mergers, acquisitions, another revenue model, etc.
Also part of value is the way that it is being measured. Which accounting model and governance rules determine the profit and value.