Value Based Management
another project by thinkmasters - helping professionals create value
Global
Fall-outs
Local Shake-outs
There's no better time to spot value...
..................................................................................................
From a world-class debacle like Enron and the demise of some household names in corporate America, to the shake-outs at some of Singapore's better-known corporations...
...these events spell one thing clearly:
CHANGE
And yet, present times also afford an excellent occasion for corporate to spot opportunities to create value and get ahead of the competition. And it's the business acumen and technical skills of key employees that will spearhead such efforts to satisfy the demands of stakeholders, create shareholder value, keep customers satisfied and employees motivated.
What better time than now to invest toward harnessing and sharpening those skills.
You are invited to attend a session...
Venue: Suntec Exhibition Centre
Date and Time: 14 - 15 September 2010 5.30pm - 7.00 pm
Topic: Strategic Thinking: Most Time Effective Way To Learn Business Mandarin by eZendir.com.
When? Now, China is too costly to be ignored.
...where our panel of experts will share their insights on value based management.
Please register early as there are limited slots ( email: cch@thinkmasters.com )
Target
audience: Companies intending to reposition their value propositions, seeking revenue growth, improving ROIC1,
enhancing MVA2 ratio,(
optimising job/task matching and increasing human capital value ) and
extending competitive advantage period,
Why Value Based Management ?
Company
in drawing up its competitive strategy must seek to grow its revenue,
and or improve productivity. It must outpace its competitors in order
to maintain a level of pricing power, and avoid the temptation to commoditise its products
and services. With a winning product, it must expect to attract even fiercer
competition, and the period where it enjoys a positive return in excess
of cost of capital is when it creates value for its stakeholders. It
must continually seek to maintain or expand this period, known as the
competitive advantage period. And increasingly, it must leverage off
its intellectual capital to achieve this. 
The issue is: Has management been able to put in place a framework that would draw the best out of its intellectual capital? i.e. What does it take for a company to succeed?
Besides vision,
it requires a dedicated and motivated workforce comprising of trustworthy
employees who are happy with what they are doing. They must possess a high
level of
empathy as well as the ability to take ownership of tasks. For this to
occur, it is important that employees are encouraged to communicate
openly and forthrightly. In order to create an environment where the
group payout can be optimised, a code of ethic is necessary.
This also serves to discourage slack attitudes from taking roots. It is imperative to create a win-win
scenario, where employees of differing skills can come together to do their
stuff and in return, get their fair reward.
For this to occur, it is
important to optimise the employee to job/task matching in terms of their
motivation, ability and personality profiles or in short MAP.
Management needs to have a game plan and be prepared to follow it through fastidiously. It must have faith in the plan and not quit at the first sign of trouble. It must put in place processes that are closed loop, with feedback collated and analysed. Additionally, it must possess the will to resolve issues.
Challenges
The following table serves to illustrate some of the relevant issues that require consideration.
|
Issues |
Attributes |
|
Stagnating Revenue |
customer-centric, market access |
|
Eroding Market Share |
customer needs / satisfaction, product innovation |
|
Poor ROIC |
value proposition |
|
Short Competitive Advantage Period |
entry barrier |
|
Low MVA Ratio |
skills, teamwork (job/task matching) |
|
Low number of new product roll-out |
skills, teamwork (job/task matching) |
|
Product specs not up to speed |
skills, teamwork (job/task matching) |
We suggest using a 3-stage approach in identifying the processes and analysing the issues on hand,
Stage 1 - When formulating strategies, there is a need to understand the underlying principles that support value creation. Only through an in-depth understanding will management be able to fully leverage on the resources at its disposal or potential resources it can acquire, to map out the various strategic options. >> more
Stage 2 - After completion of the selection of the strategic options, the next step is to identify key performance indicators ( KPIs ) that will allow management to measure and manage its value creation process. Articulating desired outcomes and setting goals will flow naturally once the strategic options have been determined. We perform the cause-and-effect analysis to match outcomes, goals to the corresponding KPIs and identify the perspectives that come into play that will ensure the desired outcome can be attained. We apply this process to the remaining outcomes, and the collective KPIs are mapped within a Performance Scorecard framework. >> more
Stage 3 - Once we have completed the above, we are in a position to measure and manage the resources allocated. We can proceed to analyse whether the company has achieved sustainable value creation. >> more
Soft skills
Management needs to be mindful when it attempts to bring the best out of its intellectual capital and attributes that have to be nurtured include empathy, respect, wisdom, creativity, teamwork and selflessness. The need to build a brand equity cannot be over emphasized as it is this intangible that will give the business model its uniqueness.
Go-to-market Strategy
Our team of experts will be able to lead you through the value creation processes in a holistic manner, through our customised templates covering:
-
Health & Wellness.
Recognising the importance of buy-in, we have developed a series of interactive e-tools that will allow us to effectively communicate with key process owners, understand their needs, seek their feedback, and map out a roadmap accordingly. From our experience, this affordable approach is an effective way in creating a conducive environment for change management, as opposed to embarking on a standard boiler-plate ERP3 project that maybe too unwieldy to effect and manage change.
Some Encouraging Feedback From Clients and Users
Expectation Exceeded - the development of the tool has been widely influential in achieving excellence through a focus on 'execution' ..... it serves as the template for implementation across strategic brands.
Ratings: Value from business analytics - excellent ..... Speed of implementation - excellent ..... Buy-in ( tone and attitude ) - excellent ..... Features and functionalities - excellent.
Facilitated in developing the thinking around performance tracking and positioned the client as leader of a new business model ..... fostered pioneering spirit ..... world class 'can do' attitude and commitment in taking the project 'live'.