The notion of value creation is strategically indispensable for an organization’s success. Creating value for stakeholders as well as for customers assists in several objectives, for instance in ensuring that operations can be founded in the future. Although how the process occurs has changed with the progression of history, its core remains relatively unaltered. Currently, the principal source of value has shifted from natural resources to information and intellectual property (Bridoux & Stoelhorst, 2016). The partnership is another key concept for value creation that helps obtain economic benefits. Understanding these concepts and the relationships between them is essential for value network management and professionals in the domain.
Value Creation in Government Contracting and Acquisition Organizations
The notion of value creation is strategically indispensable for an organization’s success. Creating value for stakeholders as well as for customers assists in several objectives, for instance, in ensuring that operations can be founded in the future. Although how the process occurs has changed with the progression of history, its core remains relatively unaltered. Currently, the principal source of value has shifted from natural resources to information and intellectual property (Bridoux & Stoelhorst, 2016). The partnership is another critical concept for value creation that helps obtain economic benefits. Understanding these concepts and the relationships between them is essential for value network management and professionals in the domain.
Value creation is a crucial aspect of current government contracting and acquisition. For instance, the concept of earned value seems to be widely used in government contracting practices, as it is based on a somewhat simplified approach – a comparison between completed and planned work. Stakeholder synergy is another crucial concept as it allows one to combine strategic action to create value for more than one stakeholder, enhancing an executive’s performance (Tantalo & Priem, 2016). The application of this concept could result in more extensive value creation, which is beneficial for producing lasting competitive advantage (Tantalo & Priem, 2016). The described concepts could be implemented to a varying extent in an array of organizations, and their utilization may depend on the specificities of a particular project.
Contemporary government contracting and acquisition organizations seem to require versatile professionals equipped to overcome challenges common for the field. Understanding previous contracting relationships, adjusting political and technological aspects in establishing a program, and analyzing the outcomes of contract awarding appear to be skills that distinguish an accomplished executive in the sphere (Brown et al., 2018). The body of knowledge concerning regulations, standard practices, and policies is also essential for an executive. Nonetheless, as a continually evolving field, government contracting necessitates additionally developed soft skills that could be applied, for instance, in value creation (Brown et al., 2018). Therefore, a competent professional, in addition to possessing extensive knowledge apropos of contracting practices, regulations, and jurisdiction, should be skillful in interpersonal communication.
Strategic planning is one of the approaches able to render an organization more effective. Identifying new organizational objectives and resources for their obtaining could be reached with the concept of earned value. Its core tenets, such as performance prediction and assessment for continual improvement, can be established in an array of organizations to different degrees, depending on their internal procedures and ongoing projects’ characteristics (Mahmoudi et al., 2019). Determining cost and implementation time variation with the help of an organization’s data could increase prognostic capacities within a company (Mahmoudi et al., 2019). Furthermore, the concept assists in facilitating cause-and-effect analysis, delineating how variables impact specific performance indicators. Hence, an organization can be more productive by implementing the outlined approach.
The traditional views on management and leadership, ascribing critical decisions to specific individuals at the top of the hierarchical ladder, seem to dissolve gradually. With the occurring technological advancement, access to the talent pool became easier, and thus the role of a leader in personnel management also changed. New tendencies within the domain emerge, in which such procedures as decision-making and authority are not governed by an exceptionally limited group. The need for transparency also alters leadership in the contemporary atmosphere of decentralization. Changing working ethics, where a boss is no longer excessively controlling and demanding, could be the future standard for leadership practices.
References
Bridoux, F., & Stoelhorst, J. W. (2016). Stakeholder relationships and social welfare: A Behavioral Theory of contributions to joint value creation. Academy of Management Review, 41(2), 229–251.
Brown, T. L., Potoski, M., & Van Slyke, D. M. (2018). Complex contracting: Management challenges and solutions. Public Administration Review, 1-9.
Mahmoudi, A., Bagherpour, M., & Javed, S. A. (2019). Grey earned value management: Theory and applications. IEEE Transactions on Engineering Management, 1–19.
Tantalo, C., & Priem, R. L. (2016). Value creation through stakeholder synergy. Strategic Management Journal, 37(2), 314–329.