The way that we frame issues has a huge impact on the value we can realise through their resolution.
There’s a fascinating debate about a potential new mine in the Cumbria region of the UK that would produce metallurgical grade coal for use in the steel industry. Supporters of the proposed mine argue that using its coal would reduce the overall CO2 footprint of UK steel production by avoiding the need to import coal from Australia and the USA. Opponents say that approval for the mine would fly in the face of the UK government’s commitment to achieving net zero CO2 by 2050 and would be shameful in the year that the UK hosts COP26.
The strong arguments on both sides of the debate are also highlighting the importance of considering economic and social impacts in reaching the yes/no decision. What is missing thus far is robust, objective data that compares the longer term environmental, economic and social impacts of the two options, although it’s fair to say that there are entrenched views on both sides of the debate that will probably not be shifted by any data.
So how did it get to this point when the UK government already has a roadmap for the decarbonisation of the steel industry by 2050? Despite this, why did it initially choose to frame the approval of the mine as being a decision for local planners in Cumbria, rather than take a national approach that considered the decision in the context of that roadmap? This framing certainly enables faster decision-making and potential short-term political benefits but at the expense of the longer-term considerations and outcome.
The sub-optimal framing of issues is, of course, also a matter of concern for businesses; it’s more likely to occur as the number of departments and management layers increase, with a significant impact on business performance. Some of it may be a consequence of the behaviour of individual leaders, for example a desire for their department to profit at the expense of another. (Of course, that would never happen). However, it is more likely to reflect the lack of an inclusive mechanism to objectively frame opportunities or problems, and to identify the pathways to their realisation or resolution that provide the greatest benefit to the overall enterprise.
Value mapping is such a mechanism that cuts through complexity and works back from the desired outcome to identify the most effective and efficient pathway to achieve that outcome. It’s a highly visual and inclusive approach that highlights and resolves different stakeholder perspectives, makes assumptions explicit and builds a common view on the value that can be realised. It can be applied in problem-solving mode or proactively to secure alignment and identify operational improvements with significant cost and margin benefits.
To learn more on how value mapping could benefit your business, please contact us at value@catalyticagroup.com.
