Sustainable certifications: Value-add or red tape? Part 4

by Niël du Toit, CEO of Go Sustainable Tourism (GST)

Adding value through the effects of 4C Management

In a business context, value-add is about activities, processes or services that enhance the value of a product, service or experience for customers. It can refer to enhanced customer experience namely improving the product or service in such a way that customers percieve it as valuable. Value-add can also refer to increasing customer satisfaction by exceeding customer expectations, which can lead to increased loyalty and retention business. It can also refer to differentiating the business from competitors by providing a unique benefit or feature that sets the business apart from others. Finally, value-add can refer to justifying premium pricing by exceeding customer expectations. This can lead to appreciation of the experience or service for which the customer is willing to pay a premium price.

By focusing on elements mentioned above, a business can differentiate itself, increase customer satisfaction and drive revenue growth.

In a business context, red tape is about excessive or bureaucratic regulations, procedures or paperwork that can hinder or slow down business operations and innovation.

Red-tape can refer to excessive regulations when overly complex or numerous rules govern business activities, or to bureaucratic procedures which involve lengthy processes that require multiple approvals permits or licences. Red-tape can also refer to excessive paperwork and documentation that is time consuming, and finally it can refer to entry barriers which limit competition and innovation.

On the other hand, reducing red tape can promote entrepreneurship, innovation and economic growth.

GST Certification and Value-Add

Turning to GST in terms of the philosophy of language analysis (see: Part 1), we can state that the GST verification audit answers the question of knowing what actually happened around each objective. Visitors can therefore trust the certificate.

GST Participating Product owners report that by increasing the sense of place experience, customers stay longer, resulting in increased occupation rate and word of mouth reference. The GST Certificate and Public Report provide valid management standards beforehand and to be experienced at the place. In this regard the construction of a GST collaboration platform is foreseen.

GST Certification and Red Tape

The GST Management Method has been streamlined to an optimal level with special reference to the questionnaire and verification audit, while still remaining a valid measurement.

GST grows the business via the appointment of an assessor in a specific geographical region. Product Owners in that region, interested to join GST, can apply online by answering 10 criteria related questions. The CEO talks to the applicant about their answers, the costs and procedures for joining GST. Interested product owners then receive the licensing and collaboration agreement to be signed by both parties. The Product Owner completes the questionnaire and the assessor makes an appointment for the first verification audit.

In conclusion

The original requirement of the Philosophy of Language asks: "What does it mean?" (connotation i.e. The Bruntland definition) and "What does it refer to?" (denotation i.e. The GST Management Method).

In the light of this requirement a concluding aspect of the GST Management Method has to be considered, namely the the simultaneous (overlapping) effect of C1, C2, C3 and C4.

To clarify the GST 4C Concept, it helps to manage with the 4C’s in their sequential relationship.

However, only when one realizes that apart from the sequence, there is also the reality of the simultaneous (overlapping) effect of all 4 C’s, is the 4C Concept fully applied as a management-by-objectives tool.

This overlapping effect can be mathematically expressed as follows:

E ~ β + λC1 + λC2 + λC3 + λC4 + λC1.C2.C3.C4

Where E = probability for success; β = General random effect; λ = a constant

The graphic below demonstrates the overlapping contribution - the black circle - as the value adding to sustainability when a tourist enterprise is managed by objectives over time according to the 4C Concept.

The entrepreneur taking responsibility for sustainability operates the tourism company (C4) for profit in and through the use of the environmental resources, natural and cultural, of the place and geographical region or kontrei (C1) in a conservation mode using clean technology. The future drift is upwards (see graphic).

At the same time the same entrepreneur starts managing the tourism company (C4) and involves the host community (C2) optimally and fairly. The management starts by doing the right things and people involved learn to improve performance by managing by objectives according to the questionnaire. The future drift is to the right (see graphic).

The resultant effect of both the future drifts is towards the upper right quadrant - always closer to the target market (C3). Involving the customer will pay dividends for the business in future because this is how we have defined quality: Serving the customer’s needs and expectations in a cost effective way.

The contribution of the GST Management Method is therefore a value adding method to the stakeholders and not simply the shareholders.

Finally, I want to point to the inherent possibility of spiritual satisfaction for the product owner. An entrepreneur in the tourism stay business joining the GST movement of Invest Local, Impact Global will experience a sense of purposefulness of life long learning and striving for something other than self content. He or she will also have the opportunity to add a sense of meaning, because there is a close connection between the Higher Purpose and the purpose of the GST Management Method. The product owner will therefore have the opportunity of belonging to a group of purpose driven people and not simply profit driven. In the words of Peter Senge: "Never doubt what one person and a small group of co-collaborators can do."