The Hierarchy of Value Part 1 of 2

Transcript:

In our last three segments, we explored each of the three dimensions of value—Systemic, Extrinsic, and Intrinsic—one at a time.

Now, let’s revisit how they relate to each other in the Hierarchy of Value.

The systemic dimension is the realm of systems, rules, ideas, and ideals. But none of these can feed a person, heal a wound, or comfort a friend. Systemic things need to be acted on in order for their full potential value to be realized as more than just an idea.

That’s where the extrinsic dimension comes in. That's where systemic concepts take form in practical, functional, measurable ways. But extrinsic things — products, roles, results, achievements— are still temporary, consumable, and replaceable.

Intrinsic value sits at the top of the hierarchy because it's the realm of what is truly immeasurably and infinitely valuable – life, the human spirit, quality of life, and well-being.

Creating, nurturing, and protecting intrinsic value creates the highest possible value - value that can’t be replaced or measured.

Lose an idea? You can think of another. Lose a tool or break a window? You can replace it.

Lose a person, or a moment of love, or life itself? It’s gone forever.

Dr. Hartman’s insight resonated with his friend and associate, Dr. Abraham Maslow, creator of the Hierarchy of Needs. While Maslow’s model shows what humans need to thrive, Hartman’s shows how we should value — and in what order — to create the conditions where those needs can be met.

The hierarchy also warns us about misvaluing.

When we put lower dimensions above higher ones, we cause harm and diminish value potential. For example, putting rules, norms, or opinions above human dignity and respect leads to injustice.

Efficiency and profit above well-being and dignity is exploitation.

And as inferred in the segment on the intrinsic dimension, in the face of injustice and exploitation, engagement, performance, innovation, and profits are all likely to suffer.

This is the key insight of the Hierarchy of Value.

When we honor the hierarchy, value multiplies across all dimensions. When we don't, we limit, diminish, or destroy value. It’s just that simple.

Again, this is not a lofty management ideal; it's a scientific fact, and we can either fight it and lose or embrace it, and everyone wins.

The question now is, how can we operationalize the hierarchy of value in our everyday life and work? How can we use it to actually make better decisions, take more effective actions, produce better results, and improve our lives?

Well, that’s where PURPOSE comes in.

One way to understand the hierarchy of value is based on the idea that everything exists for some purpose greater than itself.

For example, the imagined idea (concept) of a chair gives us a "vision of what a chair could look like and how it might be built. We can imagine it as 4 sturdy legs, a seat about knee-high, and a strong back to lean on. We might even draw a diagram of what we envision. Of course, the purpose of the chair is to give a person a sturdy, knee-high platform to sit on, with a strong back to lean on.

The next step would be to construct the chair.

Each of the four legs has the purpose of holding up the platform (seat), and it needs all the attributes required to do so, including the strength to hold the weight of the person.

The seat has a purpose as well, but the seat would be useless without the legs.

And, of course, the back of the seat also has a purpose. We could go into much more detail regarding the materials the chair is made of, the fasteners that hold it all together, any upholstery it may have, etc.

But the chair, as a whole, can only fulfill its purpose if all of its parts fulfill their purpose. In this example, assuming all parts fulfill their purpose, the value of the whole is far greater than the "sum of the parts" when the chair makes it possible for a person to have quality-of-life-enhancing experiences - a successful business meeting, waiting to see a doctor, watching their children at play, eating breakfast, reading a great book (like Freedom to Live), etc.

This same process can be applied to anything and everything in our lives.