value driven management
TRANSCRIPT
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
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PartnerwiththeWissmannGroup
1. ContactusatWissmannGroup.com
2. We’lldiscussyourchallenges
3. We’lldevelopaplantoovercomeyourchallenges4. We’llpartnertodrivevalueintoyourproductsandbusiness
5. WatchyourboUom‐linemetricsgrow
InnovateSystemaFcallyInnovatewithConfidence
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OurSuiteofServices
(C)2010WissmannGroup.Allrightsreserved.
ConsulFngProductValueReporFngUsingInformaFonTechnology
ValueDrivenProductPlanningValueDrivenInnovaFon
Product&ServiceValueOpFmizaFon
AnalysisProduct&ServiceValueBenchmarkingProduct&ServiceValueForecasFng
ProductValueDriverReportsPromoFonEffecFvenessReports
ProductValueBasedPricingStudies
WorkshopsExecuFveWorkshops(Custom)TheValueDrivenOrganizaFon
VoiceoftheCustomerExploraFon(VoCE)TotalProductValueAnalysis
ValueDriverAnalysisValueBasedCash‐FlowForecasFng