A client once shared with me that one of their biggest frustrations over the years in working with partners was investing in solutions that enhanced their revenue but didn’t necessarily solve his problem.
Determining if something is valuable versus necessary isn’t a point in time decision. It’s something that needs to get asked all the time. What we invest in might be necessary to address a problem but it will only become valuable if we know what problem needs solving and what behaviors we need to change along the way.
I suppose that’s the answer and the objective – determining that the investments we make are valuable over time to help us vet what’s necessary. This involves applying a framework for thinking about value – is it about increasing or protecting revenue? Are we looking to reduce or avoid costs?
What questions should we be asking to know how we define what’s most valuable to our business instead of assuming that an investment is necessary?