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Value Profit Chain - Explained

What is the Value Profit Chain?

Written by Jason Gordon

Updated at March 11th, 2022

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Table of Contents

What is the Value Profit Chain? Performance TrinityValue Chain VirtuesReferences for the Value Profit Chain

What is the Value Profit Chain? 

The Value Profit Chain model was proposed by James Heskett, Earl Sasser and Leonard Schlesinger. This model states that organizations must focus on providing value to stakeholders. 

  • Customers 
  • Employees
  • Investors). 

These three groups are interrelated and their desired behaviors can each be broken down into:

  • Retention,
  • Related sales, and
  • Referrals.

Performance Trinity 

  • Leadership and management
  • Culture and values
  • Vision and strategy

Value Chain Virtues

  • Leverage
  • Focus
  • Fit
  • Trust
  • Adaptability

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
value profit chain

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