Value Profit Chain - Explained
What is the Value Profit Chain?
Written by J. Mance Gordon
Updated at November 8th, 2023
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What is the Value Profit Chain?
The value profit chain is a model that states that organizations must focus on providing value to stakeholders.
- Customers
- Employees
- Investors).
What are the 3 Groups of the Value Profit Chain?
These three groups are interrelated and their desired behaviors can each be broken down into:
- Retention,
- Related sales, and
- Referrals.
What is the Performance Trinity?
- Leadership and management
- Culture and values
- Vision and strategy
What are the Value Chain Virtues
- Leverage
- Focus
- Fit
- Trust
- Adaptability
Who Developed the Value Profit Chain?
The Value Profit Chain model was proposed by James Heskett, Earl Sasser and Leonard Schlesinger.
References for the Value Profit Chain
- Heskett - Service Quality, 1986
- Heskett, Sasser and Hart - Service Breakthroughs: Changing the Rules of the Game, 1991
- Kotter and Heskett - Corporate Culture and Performance, 1992
- HBR, Putting the Service Profit Chain to Work, 1994
- Heskett, Sasser and Schlesinger -The Service Profit Chain, 1997
- Heskett, Sasser and Schlesinger - The Value Profit Chain, 2003