The Value Net

The value net is a game theory model describing how a company interacts with external roles of customers, suppliers, competitors, and complementors. Leaders may use the value net to manage teams that create and capture value. Teamwork is the art of communicating within the value net.

The Value Net [1]

Communicating with complementors may or may not become necessary. Complementors provide goods or services which add value to the goods or services offered by the company.

Communicating with customers means finding out how you can serve them well, serving them well, and letting them know how well you are serving them.

Communicating with suppliers means finding out how they can serve you, letting them serve you, and letting them know how well they are doing it.

Communicating with bosses, owners, or directors means finding out what they expect you to do, letting them know how well you are doing it, and asking for help when needed.

Communicating with employees means providing necessary resources, letting them know what needs to be done, finding out how well they are doing it, and offering help when needed.

Communicating with competitors means anticipating their actions or reactions, sending signals to influence their actions, and taking actions when necessary to gain strategic advantage.

References

[1] Co-opetition, Adam M. Brandenburger and Barry J. Nalebuff, Currency Doubleday, 1997.

[2] 101 Business Ratios - Appendix H, Sheldon Gates, McLane Publications, 1993.