value driven management

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Value Driven Management Measure and Manage What Drives Sales and Profitability (C) 2010 Wissmann Group. All rights reserved.

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ValueDrivenManagement

MeasureandManageWhatDrivesSalesandProfitability

(C)2010WissmannGroup.Allrightsreserved.

PopularParadigm:AccounFngMetricManagement

•  Theyarereadilycalculated

•  CalculaFonsarebasedonasetofrules•  Theycomefromauditedfinancialstatements•  ThemethodsarenearlyidenFcalforall

organizaFons

(C)2010WissmannGroup.Allrightsreserved.

UpsideAccounFngMetrics

•  Laggingmeasuresofperformance

•  AlthoughinvestorsandexecuFvesmonitorandusethem,employeesgenerallydonot

•  Theydon’thelpusfigureoutwhattodonext•  Theydon’tenableresponsivedecisionmaking•  Theydon’thelptoidenFfyandmiFgaterisk•  TheyareveryoQenshort‐sighted•  Inwardlooking(don’treallyconsider

compeFFon)

DownsideofAccounFngMetrics

BoUom‐linemetricsdon’thelpwhenmakingstrategicplans

ValueDrivenManagement—ClarityofAcFon

•  ProductInnovaFons•  ServiceInnovaFons•  ProcessImprovements•  PricingBasedRevenueLeakage•  CustomerSaFsfacFonImprovement•  ProductValueandCostDrivers•  CompeFtorWeaknesses

FundamentalMetricsDetectOpportuniFes:

(C)2010WissmannGroup.Allrightsreserved.

DoTheRightThings DoThingsRight IntroduceThingsFaster

ProductValue ProductCost PaceofInnovaFon

BeUer Cheaper Faster

Thefundamentalmetricsguidethestrategicplanningprocess

ValueMetricsDefined…

•  MeasureProductValuein$

•  QuanFfyCustomerValuein$•  UseProductValueinFinancialForecasts•  MapValueDriversin$•  GuideYoutoIncreasedNetProductValue•  UseProductValueandCosttosetPrices

•  QuanFfytheInnovaFvePowerofIdeas•  MakeTradeoffDecisionsInvolvingbothValueandCosts•  BenchmarkCompeFngProductsonValueandCost

Growingnetproductvaluebecomesthefocusoftheenterprise

(C)2010WissmannGroup.Allrightsreserved.

PartnerwiththeWissmannGroup

1.  ContactusatWissmannGroup.com

2.  We’lldiscussyourchallenges

3.  We’lldevelopaplantoovercomeyourchallenges4.  We’llpartnertodrivevalueintoyourproductsandbusiness

5.  WatchyourboUom‐linemetricsgrow

InnovateSystemaFcallyInnovatewithConfidence

(C)2010WissmannGroup.Allrightsreserved.

OurSuiteofServices

(C)2010WissmannGroup.Allrightsreserved.

ConsulFngProductValueReporFngUsingInformaFonTechnology

ValueDrivenProductPlanningValueDrivenInnovaFon

Product&ServiceValueOpFmizaFon

AnalysisProduct&ServiceValueBenchmarkingProduct&ServiceValueForecasFng

ProductValueDriverReportsPromoFonEffecFvenessReports

ProductValueBasedPricingStudies

WorkshopsExecuFveWorkshops(Custom)TheValueDrivenOrganizaFon

VoiceoftheCustomerExploraFon(VoCE)TotalProductValueAnalysis

ValueDriverAnalysisValueBasedCash‐FlowForecasFng