Is your organization reaching its full...
4
EY-Parthenon Is your organization reaching its full potential? Learn about EY-Parthenon’s proprietary business strategy framework, Full Potential Paradigm TM
Transcript of Is your organization reaching its full...
EY-Parthenon
Is your organization reaching its full potential? Learn about EY-Parthenon’s proprietary business strategy framework, Full Potential ParadigmTM
What pathways can you take to reach your targets?Every company and industry is different. Therefore, there is no panacea to reaching your full potential.
There are a host of different pathways you can take to help reach your goals, including but not limited to:
• Cost improvements• Pricing enhancements• Mergers• Acquisitions• Divestitures • Portfolio optimization• Market communications
Revenue
Currentorganizationvalue
Adj
uste
d op
erat
ing
perf
orm
ance
mar
gin
(%) Full potential
Currentorganization
value
Full potential
Ope
rati
ng p
erfo
rman
ce
Revenue
3x–10x
2 | EY-Parthenon
Is your organization reaching its full potential?
Is your strategy optimized to reach its full potential?A well-planned business strategy that is focused on optimizing shareholder value starts with setting aspirational, but achievable, targets and evaluating optional pathways to reach those goals.
Defining targets and evaluating pathways is not a simple task! Our Full Potential ParadigmTM can help you with both.
Have you set the right targets?In today’s dynamic and, at times, disruptive competitive environment, CEOs need to continuously ask themselves if they know the answers to the questions below:
• Industry dynamics Am I properly defining my business, and do I fully understand the overall market/industry? Do I understand the drivers of overall market/industry growth and profitability?? • Margin optimization Is my business currently performing at its full potential? Are the targets I am setting for performance — in particular operating margin — appropriate, achievable and optimal to enable the business to achieve its full potential?
• Revenue opportunities Are my organization’s resources, especially the financial resources and their respective targets, appropriately and optimally aligned to maximize the revenue growth of my business?
• Market perception Do I understand what the market’s expectations are of me? Am I receiving, and doing everything I should be doing to receive, optimal and appropriate recognition in the market for my company’s accomplishments?
> To learn more about EY-Parthenon’s Full Potential Paradigm, please visit parthenon.
EY-Parthenon | 3
EY-Parthenon’s proprietary business strategy framework
What is the Full Potential Paradigm? While there is no one path to achieving success, our proprietary and holistic diagnostic framework, the Full Potential Paradigm (FPP), can help you set your targets and help lead you on the path to a strong strategy. We have seen clients grow their market value and operating profit 3x–10x through the use of our FPP diagnostics.
How does FPP work? Our case teams at EY-Parthenon work with our clients to pull together public data, company data and primary research. We then synthesize this information and develop analyses and suggestions that the CEOs and business leaders of an organization can use to establish targets and test potential avenues before setting their strategy.
Through the evaluation of market context and the identification of three “gaps,” FPP presents an objective, quantitative analysis of your business and derives actionable insights that you can start implementing immediately to help your business reach its full potential.
The four areas of FPP diagnostics Market ContextThe foundation upon which FPP sits, market context, is the depiction of your company’s market, including competitors, customers and cost, as well as market adjacencies. For any organization, understanding the respective market dynamics, your business model, the value chain and business definition are the most critical steps in building out your FPP analysis.
Performance GapThe Performance Gap diagnostics address the first of the critical CEO questions — performance and performance targets, as evidenced by profitability and operating margin. FPP identifies an appropriate target margin based on industry structure and your relative market share against your competitors.
Opportunity GapThe Opportunity Gap diagnostics use both strategic and financial analysis techniques to provide an objective lens to manage your business’s growth both through identifying business concerns within your company that require further investment, as well as mergers and acquisitions and divestment prospects.
Perception GapThe Perception Gap diagnostics assist you in understanding market expectations and identifying the steps required to align your company’s perception with its performance. It directs you in deciding where to allocate time and investment in terms of what is most important for market valuation.
The Full Potential Paradigm is a diagnostic construct to help you set your targets and strategy
The three
“gaps”
Market Context
Performance
Opportunity
Perception Market Context
Performance
Opportunity
Perception
About EY-ParthenonParthenon joined Ernst & Young LLP on 29 August 2014. EY-Parthenon is a strategy consultancy, committed to bringing unconventional yet pragmatic thinking together with our clients’ smarts to deliver actionable strategies for real impact in today’s complex business landscape. Innovation has become a necessary ingredient for sustained success. Critical to unlocking opportunities is EY-Parthenon’s ideal balance of strengths — specialized experience with broad executional capabilities — to help you optimize your portfolio of businesses, uncover industry insights to make investment decisions, find effective paths for strategic growth opportunities and make acquisitions more rewarding. Our proven methodologies along with a progressive spirit can deliver intelligent services for our clients, amplify the impact of our strategies and make us the global advisor of choice for business leaders.
Contact us for more information
EY | Assurance | Tax | Transactions | Advisory
About EY
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.
EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.
Ernst & Young LLP is a client-serving member firm of Ernst & Young Global Limited operating in the US.
EY-Parthenon refers to the combined group of Ernst & Young LLP and other EY member firm professionals providing strategy services worldwide. Visit parthenon.ey.com for more information.
© 2017 EYGM Limited.
EYG no. 06774-173GBL
ED None
This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax or other professional advice. Please refer to your advisors for specific advice.
ey.com
Addison Lanier Vice President EY-Parthenon Ernst & Young LLP+1 617 478 [email protected]
Ignatius TongEY-Parthenon Asia-Pacific Leader Ernst & Young (China) Advisory [email protected]
Peter Gates Executive Advisor EY-Parthenon Ernst & Young LLP+1 617 478 [email protected]
Jim Hsu EY-Parthenon Americas LeaderErnst & Young LLP+1 617 478 [email protected]
John TrustmanExecutive Director EY-Parthenon Ernst & Young LLP+1 617 478 [email protected]
Bill AchtmeyerParthenon Founder, Senior Managing Director EY-Parthenon Ernst & Young LLP+1 617 478 [email protected]
Andreas von Buchwaldt EY-Parthenon EMEIA LeaderEY-Parthenon GmbH+49 40 36132 [email protected]
