Value Driven Management
- 1. Value Driven Management Measure and Manage What Drives Sales and Profitability (C) 2010 Wissmann Group. All rights reserved.
- 2. Popular Paradigm: AccounFng Metric Management Upside AccounFng Metrics Downside of AccounFng Metrics • They are readily calculated • Lagging measures of performance • CalculaFons are based on a set of rules • Although investors and execuFves monitor and • They come from audited financial statements use them, employees generally do not • The methods are nearly idenFcal for all • They don’t help us figure out what to do next organizaFons • They don’t enable responsive decision making • They don’t help to idenFfy and miFgate risk • They are very oQen short‐sighted • Inward looking (don’t really consider compeFFon) BoUom‐line metrics don’t help when making strategic plans (C) 2010 Wissmann Group. All rights reserved.
- 3. Value Driven Management—Clarity of AcFon Fundamental Metrics Detect OpportuniFes: • Product InnovaFons • Service InnovaFons • Process Improvements • Pricing Based Revenue Leakage • Customer SaFsfacFon Improvement • Product Value and Cost Drivers • CompeFtor Weaknesses Do The Right Things Do Things Right Introduce Things Faster Product Value Product Cost Pace of InnovaFon BeUer Cheaper Faster The fundamental metrics guide the strategic planning process (C) 2010 Wissmann Group. All rights reserved.
- 4. Value Metrics Defined… • Measure Product Value in $ • QuanFfy Customer Value in $ • Use Product Value in Financial Forecasts • Map Value Drivers in $ • Guide You to Increased Net Product Value • Use Product Value and Cost to set Prices • QuanFfy the InnovaFve Power of Ideas • Make Tradeoff Decisions Involving both Value and Costs • Benchmark CompeFng Products on Value and Cost Growing net product value becomes the focus of the enterprise (C) 2010 Wissmann Group. All rights reserved.
- 5. Partner with the Wissmann Group 1. Contact us at WissmannGroup.com 2. We’ll discuss your challenges 3. We’ll develop a plan to overcome your challenges 4. We’ll partner to drive value into your products and business 5. Watch your boUom‐line metrics grow Innovate SystemaFcally Innovate with Confidence (C) 2010 Wissmann Group. All rights reserved.
- 6. Our Suite of Services ConsulFng Product Value ReporFng Using InformaFon Technology Value Driven Product Planning Value Driven InnovaFon Product & Service Value OpFmizaFon Analysis Product & Service Value Benchmarking Product & Service Value ForecasFng Product Value Driver Reports PromoFon EffecFveness Reports Product Value Based Pricing Studies Workshops ExecuFve Workshops (Custom) The Value Driven OrganizaFon Voice of the Customer ExploraFon (VoCE) Total Product Value Analysis Value Driver Analysis Value Based Cash‐Flow ForecasFng (C) 2010 Wissmann Group. All rights reserved.