Perspective on The Importance of Non-Monetary Ways of Value Capture

Shutterstock Image

Some perspective on value capture as a euphemism for price. It’s incomplete. Value can be exchanged in non-monetary ways as well. This is particularly important as leaders think about compensating their team members as individuals value non-monetary things as well as monetary rewards.

There was an interesting exchange during Monsanto’s earnings call yesterday*. Deutsche Bank’s James Sheehan asked how Monsanto saw their “value capture model evolving in the next couple of years." Monsanto’s CEO, Hugh Grant, started his reply by saying “So I think value capture is a euphemism for price."

In applying that to your team, remember that people want to be happy. Happiness is good. Actually, it’s three goods: good for others; good for me; good at it. People are motivated by a blend of these three. (Follow this link for more on the secret of happiness per Harvard’s class of 1980 – a little tongue in cheek, but fun.)

Happiness is Good Core Model

Good for me

  • Near term pleasure (Enjoyable work/activities, fit with life interests)

  • Compensation (Monetary, non-monetary reward, recognition, respect)

Good for others

  • Meaning in the work (Impact on others, match with values)

  • Share in shaping the destiny (Influence, being informed)

Good at it

  • Match of activities with strengths and resources (Support and time)

  • Employability (Learning, development, resume builder)

Value-able Opportunities

Here’s the point. Money is only part of what people seek and only part of what they seek even within the “good for me” category. A leader that thinks value capture is just about money will miss opportunities for his or her followers to capture value through other currencies.


Click here for a free executive summary of "First-Time Leader."

Click here to view the New Leader's Playbook- a library of articles for new leaders.

What do you feel could help First-Time Leaders in transition?

Share your blog topic idea here.

#Management #LeadingTeams #Milestones