Value Principles in Business

When a company is evaluating between two or three businesses with similar product and service offerings, what differentiates them could be as simple as attention, market knowledge, and/or partnership. Each of these falls under the umbrella of value. Value in business is bringing something to the table that another party puts great worth in. When companies are looking for a company to run its marketing campaign, creativity is only part of the equation. Other parts to consider are relational. True value in business, is all about the relationship between companies.

As we have grown more knowledge oriented, how we serve each other determines how much business we are able to secure. Companies who see themselves as partners seem not to struggle like companies that see themselves in a different light. Goldman Sachs is a company that continually brings value to its clients. Whether it is through asset management or counsel during a merger or acquisition, Goldman Sachs employees are some of the best in the business at adding value to their client.

Companies that want to be value-based can follow three simple rules of focus that are universal in nature. When you are investing equity, experience, and energy into a company, tremendous value is reaped. And that is something that cannot be quantified in dollars and cents. When Goldman Sachs is brought in to consult a company on acquiring another company, they only operate from the vantage point of working alongside their client, not detached from the situation. Goldman team members are poised to invest themselves in finding solutions that are in the best interest of their clients, even when it may not be in the best interest of their bottom line. Such a philosophy endears Goldman Sachs to new and established clients.

With the three markers, Goldman has built itself into one of if not the premiere investment banking firms in the world. The first marker, or value principle is equity. In business, equity is the connection formed when a client trusts their service provider and they identify themselves together. When Goldman enters a new client relationship it is not long before the client sees Goldman as an extension of themselves. With a united front they work together in pursuit of the goals the client sets out for them.

Goldman operates under fourteen business principles. These principles govern their business practices and decision-making. The first principle says that, 'Our clients' interests always come first. Our experience shows that if we serve our clients well, our own success will follow.' Such a philosophy helps clients to see themselves as the most important people to Goldman Sachs. And that image brings customers back time and time again.

The second value principle is experience. When a client can look back on the work you have performed, not the quantity, but the quality, value is built. When the fees take a backseat to the return on the client's investment, value is identified. There is no fee structure that would prohibit Goldman Sachs from working with a client. Clients know going into an introductory meeting with the Goldman Sachs team that irregardless of how much it will costs, Goldman Sachs is always worth every dime spent.

The last sentence in the fourth principle at Goldman Sachs states that they would rather be the best at what they do than the biggest firm on Wall Street. With so many companies trying to grow for the sake of size and scope, Goldman Sachs has chosen the path of quality and excellence in every action that they pursue. When a client looks back at the time they have worked with Goldman, they see Goldman's philosophy that when the client is successful, Goldman is successful. And when the client is failing, Goldman has failed the client.

The third value-principle is energy. When a client sees the time and investment a service provider like Goldman Sachs is making in their success, value is driven home. Goldman will never be identified as a company who puts a client on the backburner for a larger, more profitable client. And not only do they come en masse, but they come with a commitment to focus on solving your problems until the problem has been solved.

The dedication of our people to the firm and the intense effort they give their jobs are greater than one finds in most other organizations. We think that this is an important part of our success.' Those are the words of the ninth business principle at Goldman Sachs. There is nothing legal, that Goldman would not do for a client. Goldman understands better than most that energy exerted properly always brings about a positive return. So their belief in expending energy speaks to their commitment to the betterment of every client that they have.

Whether you are a product-oriented business or a service-oriented one, the vantage point should remain the same. When looking at your clients, do so with an effort to bring as much value to them as possible. A happy client is not only a client that pays their bills but a client that promotes your business. The best evangelist an entrepreneur can have is a satisfied client. Goldman proves it every day as they get referred for more business because they do not sleep until the client is satisfied.

And that practice is priceless.