The major difference between two brands or businesses is the approach and mindset they adopt. There’s a value creation mindset and there’s a fixed mindset that you may have been used to. A mindset is an aspect of a decision and general systems theories that explains the notion of philosophy held by people or groups of people. “Mind-sets are those collections of beliefs and thoughts that make up the mental attitude, inclination, habit or, disposition that predetermines a person’s interpretations and responses to events, circumstances, and situations. It is a set of assumptions, methods, or notions held by one or more people or groups of people. It can also be seen as arising out of a person’s worldview or philosophy of life”. Having the right mindset is crucial for development and growth in both career and business.
Value Creation Mindset and Fixed Mindset, What Are They?
Value creation is giving something valuable to receive something else that’s more valuable. This definition applies to all business stakeholders (business owners, customers and, employees. Value is only gotten when value is given. If businesses produce products/services that have value to them, but no value to customers, the company has not created value at all.
Value creation is about being to your audience what they want you to be to them. It’s about delivering value to your audience on their terms. For this to happen, you have to understand the needs of your customers/clients and organize your resources to meet them at the least possible cost. It’s about knowing the when, how, and where value is required and ensuring that the right level of resources is provided to make things happen. It is about flexibility and focusing on understanding the customer’s primary and hidden expectations.
On the other hand, a fixed mindset is a belief that things cannot change. That intelligence, personality, skills, and talents cannot be improved or are unchangeable. This mindset is characterized as static intelligence where individuals and businesses give up easily, avoid challenges, see effort as fruitless, ignore useful negative feedback, and feel threatened by the success of others.
Our mindset plays a major role in our motivation, resilience, and achievement. While many people are familiar with these definitions, they are sometimes unsure exactly how to put these concepts into daily practice.
Many people have specific fixed mindset triggers, like comparisons or tough challenges. Do some of the fixed mindset examples sound familiar? They may help you identify your own triggers, and help you work hard at changing it.
In this day and age, it’s not acceptable for anyone to work with a fixed mindset. It just would not get you anywhere. No growth or progress can be achieved with this. We, therefore, advocate for it to be replaced completely with a value creation mindset which healthier and more sustainable.
It is important to note that value creation is not always in form of money. Sometimes it is for-profit and sometimes it could be for awareness. Before business decisions are made, you must take the time to challenge the idea and do a financial analysis on it. It is vital to sell your product/service’s BENEFITS and not FEATURES!
Someone with a value creation mindset views intelligence, abilities, and talents as learnable and capable of improvement through effort. On the other hand, someone with a fixed mindset views those same traits as inherently stable and unchangeable over time.
For example, as an aspiring entrepreneur, you need basic finance skills to create your business’s budget and prepare its financial statements. If you have a fixed mindset, you may think, “I’ve never been good with math, let alone financial statements. I’m not cut out to run my own business.” Now imagine you approach the situation with a value creation mindset. You might think, “I don’t have a background in finance, but I can learn and practice those skills until I feel capable.”
“Having a value creation and ownership mindset serves as a key factor in accelerating an individual’s growth and development within an organization. An employee who possesses a value creation mindset is one with a long-term vision. People with long term visions are more likely to succeed than people with a short-term vision”.
At CPPL, we create value through consumer insights. We can help you transit from operating with a fixed mindset to operating with a value creation mindset. Click this link to book a free consultation session with us.