Value Network Analysis

Here at Cool Beans Wearable Legumes, LLC, we believe that a business is more than its balance sheet. That’s why we’re such big fans of value network analysis, or VNA.

“Value network analysis” is a method of assessing an organization’s value networks—the various connections and interactions between and among various people and units inside and outside our company—and determining how well they play together. It looks at how well people collaborate and communicate, and how they balance the work and achieve the organization’s goals. It looks at the relationships that individuals within the company have, both with each other and with any clients, business partners, and outside stakeholders. And yes, it does also look at a business’s financials and operating processes, like Lean and Six Sigma and all of that good stuff.

Anyway, once all of the individual players (called “nodes”) have been identified, all of the formal and informal connections between them are mapped and analyzed. This is usually done in a very visual way, like with flow charts and diagrams and pretty colors. But not only do VNA gurus make pretty pictures of what’s already there...they also make pretty pictures of potential future scenarios, so an organization can understand their potential impact and do things to mitigate it.

For example, what would happen if Cool Beans’ totally hip and charismatic founder and CEO suddenly decided to leave the company? What sort of impact would that have on the business’s other value networks? How would the organization as a whole continue to function and be profitable? Who else would actually wear jewelry made out of chickpeas to the office?

VNA attempts to address important questions like these, and many business leaders see this type of analysis—one that includes both the financial and non-financial aspects of a business—as invaluable to their company’s success.