Value Creation

The term “value creation” refers to processes that produce benefit for your customers and for your organization. They are the processes most important to “running your business”— those that involve the majority of your employees and that generate your products, services, and positive business results for your stakeholders, including your stockholders.

Observation:  It is not clear that the word “creation” is correctly used here. The Process Management Category pertains to all processes that produce and deliver value and not only to the subset of these processes that “create” value. The misunderstanding exhibited by some organizations of the term “value creation processes” makes a strong argument for changing this terminology to be more inclusive and more easily understood. Furthermore, the Process Management Category has undergone three cycles of change since 1988. Remember when Baldrige used the term "business processes?" It may be time to look at all processes as equal from a management perspective and not try to differentiate or categorize (e.g., business, value creation, product, service, support, supplier, and delivery which are all terms used in the Process Management Category since 1988.).

The term "value creation" appears in the Baldrige Criteria in the following locations: