Time to Read: 2 min.

In  the dynamic and volatile operating environment we find ourselves in, stakeholders are looking to organizational leaders to drive value creation notwithstanding challenges faced. Leaders who are value creators follow a simple equation for success, the algebra of value creation.

VC = IQ + EQ + XQ

When we think of IQ, we think about having the intelligence necessary to take on complex and complicated roles and tasks. It’s important but often misapplied. Value creators consider the array of challenges they are confronted with and try to determine the most important problem to solve or opportunity to exploit. The best of us put aside personal agendas, internal politics, or what might land well with others and focus on one thing, the signature issue.

That said, it takes several people to solve problems or pursue opportunities. Getting support requires a high emotional quotient or EQ. It’s just as – if not more – important than IQ. Self-awareness and empathy are critical for building trusted relationships. I’ve written that trust is the currency of all relationships, and we are hard-pressed to get anything done, no matter how smart we may be, without the support of others. Not everyone will see the issue the way we do so it’s essential we engage and inspire them.

The third component of the equation is execution quotient or XQ. We might work to determine the signature issue and get others bought-in but that doesn’t guarantee the outcome we desire. We must get resources aligned and orchestrated to perform. We’ve all seen great plans, poorly executed– it’s frustrating for everyone. Value creators see the chessboard. They consider the next two to three moves required to address chokepoints that could impede execution and rally people to make course corrections to stay on track to the goal.

Developing the ability to diagnose a signature issue, gain the concurrence and support of others, and align resources to drive outcomes, makes us part of the best leaders of any organization. What if we stood back and considered the elements of the value creation equation in everything we do? What might we accomplish? What small step could we take today with each component of the equation?

Over the next three Whatif? Wednesday Thought Letters, I’ll break down each element and how better leaders use them to unlock better teams.

Let me know your thoughts in the meantime.