How can I identify value creating ideas?The Value Initiative
Michel Sader
Redmond, 4/30/2008
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Agenda1. What is The Value Initiative?2. The Value Initiative Components3. The Value Initiative Tool Suite4. Q&A
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More Pressure Than Ever on IT Budgets
80%Maintenance
20% New
CostReduction
Keep BusinessUp & Running
End User Productivity
CustomerConnection
Competition
TechnologyChange
RegulatoryCompliance
Security
Business Results& New Value
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Why do clients “prefer” a Solutions Provider??
• “Trusted Advisor” relationships with key decision makers
• Value delivered by previous work• Industry expertise• Brand• Market leadership• Price• Technical expertise• Right place at the right time
Leastdifferentiating
Mostdifferentiating
Level of CompetitiveDifferentiationReason
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Ingredients of a Trusted Advisor relationship
Thinking like CXO’s/ executivesWhere Value is Driven Within the Company
What’s Most Important and How to Get Things Done
ValueCreating
Ideas
Contextual, Thought Provoking Points of View
Opportunities to talk to CXO’s/ executives
Insightful/Practical Propositions
+ +RelationshipsWith Powerful
People
Ongoing Role as Business Advisor (not Vendor)
Preferred Provider of business solutions
Trusted Advisor relationships TrustedAdvisor
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Unrelenting focus on creating business value for your clients
Your Company can effectively differentiate your business
solutions based on your ability to create tangible value for
clients
1- The Value Initiative is about helping your clients create more value
• You understand your clients’ business imperatives and issues
• You understand how the business solutions you provide can help
• Your people is focused on creating business value, not just on technology
• You measure and communicate the value you create for your clients
The Value Initiative Vision
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2- The Value Initiative Components
Measure & Grade Understand Develop
hypotheses ValidateIdentify Projects Stakeholders
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•Volume•Price Realization
•SG&A•COGS
•PP&E •Inventory•Receivables & Payables
•Company Strengths•External Factors
Change What You Do(Strategy)• What you provide• Whom you target and serve• How you compete• Where you deploy your resources• Which operations you outsource
Do What You Do Better(Tactics)• Business processes• Intra - and inter-company collaboration• Customers, employee & other stakeholder satisfaction• Resource/Asset development & deployment• Strategic capability development
REVENUE GROWTH
OPERATING MARGIN
ASSET EFFICIENCY
EXPECTATIONS
3. Our Offer Alignment
Other Shared / Corporate Services(Real Estate, Procurement & Other)
Human Resource Strategy & Management(Recruitment, Development, Administration &Performance Management)IT Strategy & Management(Design, Development, Deployment, Operations & Performance Management)
Corporate Strategy & Business Management(Business & Financial Strategy, Mergers & Acquisitions,Program Management & Performance Management)
Customer Strategy, Relationships & Interactions(Marketing, Sales, Delivery/Provisioning, Billing & Service)
Product Strategy, Development & Production(Innovation & Design, Supply Chain Management, ProductionOperations & Logistics)
It depicts three things:
2. What You Can Do(Improvement Levers: efficiency of Business Processes,Productivity of Assets & strengthen Organizational Capabilities)
1. How Value is Created (Value Drivers)
Key Benefit: the establishment of a common, consistent language for talking about business performance across business units and business functions (e.g. IT and HR), and with external audiences like stock analysts and boards of directors.
The Value Map is the Starting Point: Creating Value to Shareholders
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Derivative Value Maps created from the Enterprise Value MapEnterprise Applications
• CRM Value Map (also in Chinese and German)• CRM for Contact Centers • CRM for Field Services • CRM for Partner Relationship • CRM for SAP • CRM for PeopleSoft• CRM for Siebel • CRM for Pharmaceutical• CRM for Retail Banking • CRM for Tour Operator• Enterprise Value Map for Lawson• Enterprise Value Map for Oracle• Enterprise Value Map for PeopleSoft Enterprise• Enterprise Value Map for PeopleSoft EnterpriseOne• Enterprise Value Map for SAP
Technology Integration• Enterprise Value Map for SAP NetWeaver• Enterprise Value Map for Oracle Fusion Middleware• Enterprise Value Map for IBM Software• Enterprise Application Integration Value Map
Outsourcing Services• Enterprise Value Map for Outsourcing Services
Human Capital• Enterprise Value Map for Human Capital• ERM Value Map
Strategy & Operations• Enterprise Value Map for Growth Companies• SCM Value Map • SCM Value Map for SAP • SCM Value Map for Service Parts Management with SAP • CRM for Sales Force Effectiveness• Enterprise Value Map for Cash Generation (M&A)• Enterprise Value Map for Value Capture (M&A)
Integrated Service Offerings (ISOs)• Enterprise Cost Reduction• Enterprise Portal Offering• HR Transformation• Revenue Enhancement
Industries/Segments• CB: Retail Value Map• CB: Brand Value Map• CB: Restaurant Industry Value Map• FSI: Universal Banking Value Map• Energy: Oil & Gas Upstream Value Map• Energy: Oil & Gas Downstream Value Map• Energy: Oilfield Services Value Map• Health Care: Health Plans Value Map• Health Care: Health Care Providers Value Map• Health Care: Life Sciences• Public Sector: Government Performance Map• Real Estate: Engineering and Construction Value Map• Real Estate: Real Estate Owners/Operators Value Map• TMT: Wireless Value Map• TMT: High Tech Value Map
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To serve your clients well, you need to understand their goals and think from their perspectives
• Strategic Focus: What do we need to do?
• Tactical Execution: How can we do it?
• Clarity and Purpose: Why are we doing what we’re doing?
• Value Drivers: How important is it to be good at this?
• Competitive Analysis: How good are we at it currently? How good are your competitors?
• Change and Organizational Readiness: How ready are we to improve?
IncreaseShareholder
Value
Client Questions:
The Result:
Guidance and
Solutions
The Enterprise Value Map is also important because it helps us think like a client and deliver tangible results. The Value Map helps answer the critical questions your clients can and should ask…
Why use the Value Map?
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From the Value Map to a productive conversation
Measure & Grade the client’s
performance
Understand the key strategies and competencies
Identify Major Projects
and key operational issues
Determine with whom we
need to progress ideas
Validatehypotheses with
clients
What should the client be good at?
How good are they?
Step 1 Step 2 Step 3 Step 4
Develop hypotheses and
insights focused on
performance gaps
Are current projects aligned with strategic aims to alleviate pain
points?
How can we help?
C-BB-
Who should we talk to?
The Enterprise Value Map
People with
power
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Step 1 – Understand the Strategy
• What is the business model?• What are the competitive pressures?• What are the key business issues?
Measure & Grade Understand Develop
hypotheses Validate
Strategic Priority
Key Business Issue
Optimize depreciationmethods/lives forproperty , plant andequipment
Optimize valuationand costing methodsfor inventories(L I FO, F IF O, un ifo rmcap i ta li za t io n, sh r in ka ge ,ob soles ce nc e, etc.)
Ensur e full utilizationof tax carry forwards(c red it s , ne t op era ti nglo sse s, ca pi tal l o sse s, et c.)
Consider tax impli ca-tions in the location/select ion of fac iliti es(d i st rib ut ion c en ters, se rvicecen t ers , bra nc he s, et c. )
Improve salesfor ecasting andcampaign executionprocesses and tools
Improverelationship/accountdevelopmentprocesses
Improve sk ills ofsales staff
Prov ide staff withbetter customerinformation(de mog rap hics , inq ui ryhistory , e t c. )
Improve staffincentives aroundsales effi ciency
Improve processesfor generating,qual ify ing andassigning leads
Improvefield sales andtelesalesprocesses
Consolidate/realignsales territories
Improve terms withsales channels
Improve terms withserv ice prov iders(ne tw o rk se rvi ce s, a ir l i ne s,in fo rma ti o n se rvice s, e t c. )
Improve terms onleased sales assets(com pu te rs, ve hicles , e tc .)
Target newgeogr aphies
Target new segmentswithin currentgeogr aphies
Expand sales andadvertis ing channels
Acquire new pr oductand service offerings
Pursue joint-ventur e,part nership and OEMarrangements
Increase focus onhigh-value/high-pot ential customers
Increase focus onmost profi tableproducts and serv ices
Increase focus onmost effective salesand advertis ingchannels
Impr ove brandstrength and good w ill
Increase time spentsel ling
Impr ove quality andassignment of salesleads
Impr ove access toinfor mation andanaly tical tools
Impr ove sales andmarketing skills ofstaff
Impr ove alignment ofstaff i ncentives wi thstrat egic objectives
Impr ove effectivenessof marketing,advertis ing and salesprocesses
Tailor marketing andsales approaches tocustomer segments
Tailor products andser vices t o newcustomer segments
Evolve product andservice features,functionali ty and value
Impr ove totalcustomer exper ience(pu rcha si n g, fu l fi llme nt ,us ag e, su pp ort , s ervice ,et c. )
Incr ease focus onhigh- value/high-potent ial customers
Improveresponsiveness tocustomer complaints /feedback
Improveunderstanding ofcustomer needs
Proactively managetransition points( li f e e ve nt s, en ds o fco nt ra cts an d l ea ses , et c. )
Tailor accountmanagementapproaches tocustomer segments
Maintain competitivefunctionality and value
Tailor cross- sell/up-sell of fer s to cust omerneeds
Implement pric ing andaffini ty progr amsbased on volume andbr eadth
Offer value-addingpr oduct and servicebundles
Improve effecti venessof cross-sell /up-sellpr ocesses
Implement proactiveand reacti ve cross-sell and up-sel lcampaigns
Improve staffincentives for cr oss-selling/up-selling
Improve identificat ionof cross-sell /up-sellopportunities
Increase focus onhigh-value/high-potential customer s
Increase focus onmost profi tablepr oducts and serv ices
Increase focus onmost effect ive salesand advertisingchannels
Impr ove retention andwin-back processes
Build customersatis fact ion andretention into staffincenti ves
Impr oveunder standing ofchur n/defectiondrivers
Impr ove identif icationof churn/defectioncandidates
Increase focus onhigh-value /high-potential customers
Impr ovecompetiti veness ofproduct and serviceoffer ings
Shorten time-to-market
Impr ove brandawareness / E levatebrand image
Increase emphasison supply chainmanagement(pro du ct io n, d is tri bu ti o n an dsa le s pip el in es )
Obtain exclusiveagr eements withpar tner s( lice ns es , d is tri bu torsh ips,etc.)
Impr ove features andfunctional ity ofproducts and serv ices
Impr ove quality andreliability of product sand serv ices
Impr ove product andser vice lifecyclemanagement
Impr ovecommunicat ion andcoor dination wi thdis tribution centers
Impr ovecommunicat ion andcoor dination wi thsales channels
Improve focus onhigher-valuesegments
Rationalize and/ orrefocus channel /media usage
Rationalize and/ orrefocus product andservice por tfolios
Rationalize targetedcustomer segments
Improve campaigndesign andmanagementprocesses and tools
Improve sk ills ofmarketing staff
Improve staffi ncentives aroundmarketing efficiency
Provide staff withbetter m arket andcustomer information
Improve definit ion ofproduct and servicespecification
Improve product andservice launchprocesses
Provide staff withbetter competitiveinf ormation
Improve tailoring ofmarketing andadvertis ingapproaches tocustomer segments
Improve terms withadvertis ing channels
Improve terms withservice providers(res earc he rs, in f orma ti onse rvices , a dv er ti si ngch an ne ls , e tc.)
Impr ove emphasis onproduct quality andease of service
Design pr oducts forease-of-use / sel f-ser vice
Route low-valuetransactions to lower -cost sales channels
Impr ove routing ofser vice requests toappr opriate staff
Increase use of l ow er-cost serv ice andinfor mation channels(con t ac t c en te rs, au to ma te dvo ic e res po nse , web, e tc .)
Impr ove w orkf orceplanning and dispat chprocesses and tools
Impr ove capacity /dem and planningprocesses, sk ills andtools
Impr ove service andsupport processes
Impr ove skil ls ofser vice st aff
Prov ide staff withbet ter customerinfor mation(pro fi les, t ran sac t io nhi st or ie s, e tc.)
Impr ove incentivesaround serv iceeffic iency andeffectiveness
Impr ove terms withser vice prov iders(ne two rk se rvi ce s,ou ts o urce d f un ctio n s, e tc.)
Impr ove terms onleased service assets(com pu te rs, ve hicles , e tc .)
Im prove forecasting,planning andprioritization skill s andtools
Im prove creditanalys isprocesses
Im prove skil ls of ordermanagement andbil ling s taff
Prov ide staff withbetter customer andorder information
Im prove incentivesaround ordermanagementeff ic iency
Im prove pick, packand ship pr ocesses
Im proveprov isioning/installation processes
Im prove invoic ing/bil ling processes
Im prove poli cies andprocesses aroundmer chandise returns
Im prove terms withserv ice pr ov iders(d e live ry serv ic es ,ou ts ou rced f un ctio ns , e tc .)
Im prove terms onleased assets(c om pu te rs, veh icles , e tc .)
Consol idate and/orre-architect datastor es
Incr ease util ization ofIT, telecom andnetwork resour ces(se rve rs , ro ut ers , n et workca pa ci ty , e t c. )
Improve design,development andtest ing processes
Improve processes formanaging systemoperations, mainten-ance and changes
Improve end-usersupport andadminis trationprocesses
Improve selection,acquisi tion andcontr actingprocesses
Improve installation/deploymentprocesses
Improve technical andproject managem entski lls of staff
Improve dispat ch,diagnostic , r esolutionand replacementprocesses
Improve incent ivesaround IT /netw orkefficiency
Improve terms wi thservice prov iders(co ntrac to rs, ne two rkse rvices , c on su lta nts, et c.)
Improve terms onpurchased and leasedassets (PCs , s erve rs,ne twork eq u ip me nt , l e ase dli n es , etc .)
Improve terms onpur chased and leasedreal estate, furnitureand fix tures
Increase utilization ofreal estate
Improve capacity /demand planningprocesses and tools
Improve real estatedesign and develop-ment processes
Improve operationalprocesses(ad min is t rat io n , se cu rit y,en erg y, HVAC an dmain te na nc e)
Improve real estateselection, acquis iti onand contractingprocesses
Improve real estateimprovement anddeploymentprocesses
Improve terms withser vice prov iders(sec ur i t y, ene rgy , etc.)
Improve terms onimprovements(HVAC, c ab ling , et c.)
Improve terms w iththird-party productand serv ice prov iders(p ay rol l , be n ef its , trai ni ng ,etc)
Reduce salar y andbenefi ts costs /Improve value ofemployee benefits
Improve capacity/demand planningpr ocesses and tools
Implement/improvecompany- widepr ocesses and toolsfor assessing st affperfor mance
Improverecruitment andor ientation pr ocesses
Improve sk ills of H Rstaff
Provide staff withbetter H R informationand tools
Improvetrainingpr ocesses
Improve salary andbenefi ts administra-ti on processes /Increase employeeself-serv ice
Improvepayrol lpr ocesses
Improveperfor manceassessmentpr ocesses
Rationalize/consolidate vendorportfolio
Increase focus onhigher-value vendorpartner ships
Impr ove collaborationwith vendors
Increase use of low er-cost channels(se lf-se rvice , e tc . )
Impr ove ass ignmentof pr ocurementtransactions toappr opriate s taff
Impr ove demandplanning processesand tools
Impr ove productprocurementprocesses(eq ui pme n t, su pp li e s, e tc.)
Impr ove serv iceprocurementprocesses(t ra ve l, co ntra ct la bor, etc .)
Impr ove contract ingand negotiation skill sof pr ocurement s taf f
Provide staff w ithbetter pr oduct andservice infor mation
Impr ove incent ivesaround pr ocurementefficiency
Impr ove terms onequipment andsuppl ies
Impr ove terms wi thservice prov iders(eq ui pme n t ma i nt en an ce ,de l ive ry, ware ho us ing , et c. )
Im prove terms wi thservice providers(i n fo rma tion se rvi ces ,con su l ta nt s , et c .)
Im provestr ategic planningprocesses
Im prove skill s ofbusinessmanagement staff
Prov ide staff withbetter managerialinformation and tools
Im prove incentivesaround businessplanning eff ic iency
Im proveprogr am planningprocesses
Im prove capitalbudgetingprocesses
Im proveprogr ammanagementprocesses
Im proveaccounting andmeasurementprocesses
Impr ove terms withfinancial serv icesproviders
Impr ovecash/treasurymanagementpractices
Impr ove sk ills offinancial managementst aff
Impr ove incentivesaround financialmanagementeffic iency
Impr ove debt andequity managementprocesses
Incr ease focus onmaterial s-efficientproductionmechanisms
Rationalize and/ orrefocus productportfolio
Incr ease emphasis ondesigning f ormaterial s efficiency
Rationalize/consolidate vendorportfolio
Focus efforts onhigher-value vendorrelationships
Improve terms onmaterial s purchases
Rationalize orderquantities and timing
Improve materialsperformancemanagementmethods and tools
Improve demandforecastingprocesses, skil ls andtools
Improve ordering andreceipt processes( raw ma te ria ls , in te rmed iat ema te r ia l s, fi ni sh edco mpo n en ts , e tc. )
Improve materialsefficiency ofproduction processes
Improve contractingand negotiation sk ill sof purchasing staff
Provide staff w ithbetter pr oductinf ormation and tools
Design pr oducts touse cost-effecti vematerial s
Improve terms withservice prov iders(de li ve ry, wa reh o usin g, et c.)
R ationalize and/orrefocus productportfolio
Improve focus onhigher-value products
R ationalize productionquantiti es and timing
Increase use of low er-cost productionchannels
Improve ter ms wi thservice prov iders(o utso urce d fu nct ion s, e t c. )
Improve ter mson equipmentpurchases
Improve productionperformancemanagementmethods and tools
Improve demandforecastingprocesses, ski lls andtools
Improve capacityplanning processes,skills and tools
Improveproduction schedul ingand stagingprocesses
Improve util ization ofproduction channels /R educe downtime
Improve ski lls ofproduction s taff
Prov ide staff w ithbetter productioninformation and tools
Improve incentivesaround productionefficiency
Improve coordinationw ith businesspartners
Improvemanuf acturing andquali ty cont rolprocesses
Rational ize and/orrefocus productport folio
Rational ize/consolidate vendorport folio
Im prove focus onhigher-value vendorrelationships
Im prove terms onmer chandisepurchases
Rational ize or derquantities and timing
Im provemer chandis ingperf ormancemanagementmethods and tools
Im prove demandfor ecastingprocesses, skill s andtools
Im prove assignmentof tr ansactions toappropriate s taff
Im provemer chandiseorder ing and receiptprocesses
Im prove sk ill s ofmer chandis ing staff
Provide staff wi thbetter information andtools
Im prove incenti vesaround merchandisingeff iciency
Im prove coordinationwith vendors
Im prove terms withservice pr oviders(d e li ve ry, wa reh ou sing , e tc .)
Rationalize and/orrefocus productpor tfolio
Increase emphasis ondesigning andpackagingfor dis tri bution
Increase quality andconsistency ofmaterials
Rationalize productionquantities and timing
Rationalizemerchandise orderquantities and timing
Increase use of lower-cost l ogisti cs anddistribution channels
Impr ove inventoryreceipt and stor ageprocesses
Impr ove transport anddeli very processes/algori thms
Impr ove sk ills ofinventory anddistribution staff
Provide staff wi thbet ter information andtools
Impr ove incenti vesaround inventor y/distribution effic iency
Impr ove logis ticsper formancemanagementmethods and tools
Impr ove demandforecastingprocesses, sk ill s andtools
Impr ove terms withser vice providers( tra ns po rt, ware ho us in g,etc.)
Im prove focus onhigher-value customersegments andproducts
Rationalize and/orrealign productdevelopmenteff orts
Increase use of l ower-cost productdevelopmentchannels
Im prove productconception/ini tiationprocesses
Im prove uti lization ofproduct developmentchannels
Im prove sk ills ofproduct developmentstaff
Im prove definition ofproduct and serv icespecif ications
Im prove incentivesaround productdevelopmenteff ic iency
Im proveprot otyping, pilotingand testing pr ocesses
Im provedesign anddevelopmentprocesses
Im prove ident ificat ionand discontinuation ofunsuccessfuleff orts
License or acquir eproducts andintel lectual proper ty
Develop businessmodels with low realestate requi rements
Reduce number ofdat a centers, branchoffices, dealerships,retail outlets , etc .
Outsource businessfunctions
Increase use ofleased real estate
Impr ove termson property andfacil ities
Reconfigure faci lities /Increase uti lization offacil ities
Increase use offlexible facil ities
Divest low -ut il izationreal estate
Rationali ze and/orrefocus product andserv ice portfolios
Outsource businessfunctions
Increaseuse of leasedproduction equipment
Improve terms on ITsystems
Increase use offlex ible/expandableproduction equipment
Increase emphasis ondesign formanufacturability andserv ice
Divest low- uti lizationequipment
Improveeffecti veness of plantmaintenance
Impr ove termson infrastructure
Divest low -ut il izationinfr astructure
Increaseuse of flexible andexpandableinfr astructure
Increase use ofleased infr astructure
Rationali ze and/orrefocus productpor tfolio
Rationali ze and/orrefocus customersegments anddistribution channels
Develop low- Inventorybusiness models
Increase emphasison bui ld-to-order
Impr ove terms onmerchandise
Impr ovecollaboration withvendors/partners
Impr ovedem and forecasting
Consolidateinventory
Impr ove logis tics/distribution effic iency
Divest low -demand/obsolete inventory
Rational ize and/orrefocus productport folio
Shorten productioncyc les
Rational ize r awmaterial s
Increase use of just -in-time procur ement
Im provedemand forecasting
Im prove terms onmaterial s
Divest obsoletematerial s
Coordinatemanagement ofcr edit/receivablesacr oss business uni ts
Increase focus oncustomer segmentswith low credit /l oanneeds
Tighten credit/loanterms
Impr ove assessmentand benchmar king ofcr edit/receivablesper formance
Impr ove managementof del inquentaccounts
Coordinatemanagement ofpayables acrossbusiness units
Leverage credit ratingto lengthen paymentcycles and reduceinterest rates
Leverage breadth ofvendor relationshipsto lengthen paymentcycles
Im prove managementof debt portfol io
Im prove ident ificationand predict ion ofindustry and markettr ends
Im prove ident ificationof opportunities andthr eats
Im prove strategydevelopment capa-bilities at corporateand business-unitlevels
Im prove alignment ofbudgets and capitalprogr ams withstr ategic pr ior ities
Im prove executi vedevelopment,recr uiting andsuccession planning
Im prove ident ification,assessment andexecution ofM& A/divestitureopportunities
Im provecommunication ofstr ategic directionsand priorities
Improve structuringand launch ofcohesive pr ogramportfolios
Improve coordinationand communicationacross programs andprojects
Improve program/project managem entmethods and tools
Improve alignment ofprojects w ith programand businessobjectives
Improvemeasurement andrepor ting ofoperational andfinancial performance
Improve analysis ofmanagerialinformation
Improve focus onmost importantmanagerialinformation
Improvecommunicationaround improvementprioriti es
Improve abilityto launchimprovement efforts
Improve qual ity andconsistency ofperf ormanceassessment methods
Improve careeroptions and paths
Align managementand staff incenti veswith companyperf ormance
Improve monetaryand non-monetaryrecogniti on of staffcontributions
Improve breadth,depth, qual ity andtimeliness of perform-ance information
Impr ove effecti venessof or ganizationalstructures andgovernance models
Increase emphasis onquality managementand benchmarking
Impr oveprocess innovationski lls of staff
Impr ove depthand breadth of stafftechnical ski lls
Im prove qualityand speed ofcommunication withpart ners
Im prove ability tointegrate mergedand acquir edorganizations
Im prove ability toidentify and assesspart neringopportunities
Im provemanagement ofpart ner relationships
Im prove integrat ion ofbusiness processesacross partnernetw orks
Improve valuedelivered tocustomers
Improve valuedelivered to part ners(ve nd ors, c han n el p art n ers,et c .)
Improve valuedelivered toemployees
Improve identificationof opport unities toincr ease value tostakeholders
Improve understand-ing of stakeholderinterests (cu st ome rs,sh are ho ld e rs , re gul a to rs,em ploy ee s, su ppl i ers,pa rt ne rs , al umn i , etc .)
Improve conversion ofs trong r elationshipsinto sources of com-petitive advantage
Improvecommunication w ithstakeholder groups
Impr ove agili ty andflex ibility oforganizationalst ructures
Impr ove agili ty andflex ibility ofgovernance models
Impr ove flexibi lityof businessprocesses
Impr ove versatility ofmanagers and staff
Impr ove flexibi lityand versatility of ITsystems andplatforms
Rationalizecustomer portfolio
Improveresponsiveness tocustomer request sand inquiries
Improve tracking ofcustomer interactions(pu rch ase s , su pp or treq ue st s, e tc. )
Impr ove identif icationof valuable customerrelat ionships
Refocus and/or refineretention priorities andstrat egies
Cr eate barriers toswitching
Solic it and respond tocustomer feedback
Implement affinityprograms
Increase emphasison differentiatedproducts and serv ices
Impr ove demandforecasting
Improveunder standing ofcustomer, productand channelprofitabi lit y
Consolidate orout source service andsupport operations
Di fferentiate serv icetreatment ofcustomers/segments
Provide staff withbet ter pr oduct andser vice information
Impr ove financialri sk managementprocesses
Increase use of l ower-cost delivery/installation channels(s el f-se rvic e, pa rt ne rs, e t c. )
Increase use of l ower-cost bi lling channels(a u to ma te d, se lf -se rvi ce,etc. )
Di fferentiate treatmentof customers/segments
Im prove emphasis ondesign for packing/shipping effi ciency
Consolidate oroutsource or derful fil lment functions(p i ck, pa ck a nd sh ip ,in st al l , p rovi sion , et c. )
Consolidate oroutsource bi lli ngoperations
Consol idate oroutsource design,development anddeployment services
Consol idate oroutsource operationsand maintenanceservices
Consol idate oroutsource end-usersupport
Consolidate companyreal estate/fac ilities
Consolidate orout source design anddevelopmentfunctions
Rationalize ITapplication portfolio
Consolidate orout sourceimprovement anddeployment
Consolidate orout source propert ymanagementfunctions
Increase use of l ower -cost real estate andfacil it ies / R elocat ebusiness operations
Consolidate oroutsource benefitsadministrationfunctions
Consolidate oroutsource payrollfunctions
Consolidate oroutsource recr ui tmentfunctions
Refine vendorstrat egies
Standardize productcatalogs(eq ui pme n t, o ffi ce s upp l ie s,pro mot ion al ma te r ia ls , e t c. )
Consol idate oroutsourceprocurement funct ions
Consolidate and/oralign businessplanning,management andrepor ting functions
Im prove alignment oforganization struc-tur es and governancemodels wi th businessstr ategies
Consolidate and/ oralign financialplanning,management andreporting functions
Consolidate and/ oralign financialaccounting andanalys is functions
Improve incent ivesaround pr ocurementefficiency
Increase emphasis ondesign for productionefficiency
C onsol idate oroutsource productionfunctions
Refine/alignlogistics anddistribution strategies
Increase focus onhigher-value productsand partners
Consolidate/out source logis ticsand distributionfunctions
Rationalize and/orrefocus product andser vice port fol ios
Consol idate oroutsource pr oductdevelopmentfunctions
Increase emphasis onmodular, ext ensible,scalable designs
ConsolidateIT systems,production lines andserv ice mechanisms
Increase emphasis onhigh-turn products
Increase emphasis ondesigning formanufacturingeff iciency
Im provecol laboration w ithvendors/partners
Increase emphasis ondesigning formaterial s effi ciency
Increase focus onvendors withfavorable paymentter ms
Increase emphasison r isk-inform ed,scenario-basedplanning
Incr ease emphasis onenterprise-w ideprogram planning andcollaborative programdelivery
Increase emphasison continuous,proactive per form-ance management
Improvedeter mination of keyperf ormance metricsand targets
Establish a culturecentered onoper ationalexcel lence
Increase focus onpart nership, mer gerand acquisi tionopportunities
Increase focus onstakeholderrelationships
Establish processimpr ovement andinnovation as keycompetencies
Establishmanagement of keystakeholderrelationships asorganizational priority
Increase focus onbusiness agi lity andflex ibility
Establish agi lity andflex ibility as keycompetencies
Increase integr ation ofbusiness processesacross organizationalboundaries
Im provepart nership andcollabor ation ski lls ofstaff
Improve uti lization ofsales staff
Impr ove util ization ofser vice st aff
Prov ide staff withbetter product, serviceand competit iveinformation
Implement integratedapplications acrossorganizationalboundaries
Consol idate IT,telecom and netw orkequipment andfacilities
Util ize moreeffic ient productionequipment
Improve quali ty andconsis tency ofmanufacturingmaterials
© 2004. All rights reserved. Confidential. 0104
Impr ove value /Decrease pr ices
Impr ove assessmentand benchmarking ofbusiness processperformance
Impr ove sharing ofknow ledge acrossorganizationalboundaries
Im prove sharing ofknow ledge acrossorganizationalboundaries
Impr ove businesscontinuity planningand disaster recoverycapabil ities
Im prove ability todevelop and spin- offnew businesses
Increase focus on riskmanagement andregulatory compliance
Impr ove focus onprice-insensi tivecustomer segments
Increase emphasis ondifferentiated pric ingacross customersegments
Im proveunderstanding ofcustomer pricesensitiv ity
Align adverti sing withpric ing s trategies
Im prove tai lor ing ofoff erings to customerneeds
Increase use ofdifferential pric ingmechanisms (b as ed oncus t ome r valu e, r is k, e tc.)
Increase emphasison preventi veequipmentmaintenance
Defer/change timingof capital investments
Increase utilizat ion ofproduction equipment
Increase focus onmanagerial , forward-look ing information
Im proveunderstanding ofproduct/service valueto customers
Increase focus onpricing effectiveness/price optimization
Increase focus onR&D, productinnovation, andproduct leadership
Broaden pr oduct andservice offerings
Im prove product /service R&Dand deploymentcapabili ties
Adapt currentproducts and serv icesfor new segments/channels
Im prove product - andservice-innovationski lls of staff
Incr ease emphasis onservice prevention /Reduce need forservice
Incr ease emphasis ondesigning f or serviceeffic iency and self-service
Route low-valuetransactions to low er-cost sales channels
Improve routing ofservice requests toappropr iate serv icechannels
Incr ease use ofcheaper servicechannels
Improve serviceperformancemanagementmethods and tools
Improve w orkfor ceplanning, dispatchand assignmentprocessesand tools
Improve capacity /demand planningprocesses, sk ills andtools
Improve service andsupport processes
Improve sk ills ofservice s taff
Prov ide staff w ithbetter customerinf ormation(pro fil es , tran sa ctio nhi sto r ie s, et c. )
Improve staffincenti ves aroundservice effic iency
Improve terms withservice providers(ou t so urce d se rvice s,ne twork s ervi ce s,in f orma tio n se rvi ce s, etc.)
Improve terms onleased service assets(co mpu ters , ve hi cl es , e t c. )
Consolidate oroutsource serviceoperations
Differentiat e tr eatmentof customers/segments
Provide staff w ithbetter product, serv iceand contractinf ormation
Rationalize and/ orrefocus servicesoffered
Improve uti lization ofservice s taff
Improve focus onhigher-value customerrelationships
Convert free serv icesto fee-based ser vices
Align product andserv ice prices wi thvalue to customers
Establish product,ser vice and processinnovation as keycompetencies
Impr ove productinnovation processes
Impr ove product,ser vice and processinnovation sk ill s ofst aff
Improve assignmentof accountability andauthority
Improve effectivenessof organizationalst ructures
Dynamically cancel orredirect ineffective/obsolete programsand pr ojects
Improve tr acking andcommunication ofprogram/projectprogress
Improve ass ignmentof resour ces toprojects
Improve program/project managem entskills of staff
Improve managementof vendors/serviceprov iders
Establish program/project delivery as akey competency
Im prove alignment ofcustomer, product,advertising, sales,serv ice, support, andfulfi llment s trategies
Develop, spin-of f andsell new businesses
Im prove investmentreturns on cash/tr easury funds
License or sellintell ectual capital toother enterprises
Improve brandstrength and good w ill
Impr ove brandstrength and good w i ll
Sell appreciatedassets
Increase emphasis ongenerating revenuefr om company assets
Increase focus ondeveloping andprot ecting intel lectualcapital
Increase focus oncr editw orthy customersegments
Impr ove collectionsprocesses
Impr ove andst andardize credi tassessmentprocesses
Differentiate credittreatment ofcustomers/segments
Improveunderstanding ofcustomer needs
Increase focus onexpansion ofcustomerrelationships
Improve product andservice withdrawaland ret irementprocesses
Acquire competitors
Improveestablishment of andadherence to service-level targets
Increase use ofdistance/on-li nelearning
Establi sh customercommuni ties
Improve cross-selland up-sellapproaches/ models
Apply brand to newand unbrandedproducts
Develop and leveragestr ong/unique partnerrelationships
Develop and leveragestr ong brand
Develop strongcustomerrelationships andcommunit ies
Develop and utilizeunique physicalresources(f a ci li t ie s, la nd , e t c. )
Develop and utilizeunique humanresources(t h ou gh t lea de rs, ma na ge rs,sub j ec t ma tt e r e xp ert s, etc .)
Develop and leverageintellectual capital(c op yr igh t s, p at e nts,tra de ma rk s, etc.)
Increase focus onstr ategic assets
Im prove assetdevelopment skill s ofmanagement andstaff
Im prove incentivesaround assetdevelopment
Establishdevelopment ofstr ategic assets as akey competency
Increase emphasis onleveraging strategicassets
Shorten productioncycles
Im prove developmentand analysis ofbusiness cases
Impr ove securi ty ofapplications, systemsand data
Impr ove costaccounting andallocation of shared/over head costs
Impr ove recruitingeffectiveness
Improve relationshipmanagementstrategies for keystakeholder groups
Improve valuedelivered toshareholders
Rationalize and/orrefocus product andser vice port fol ios
Rationalize and/orrefocus product andserv ice portfol ios
Impr ove physicalsecurity of people
Impr ovecommunication andknow ledge transferacr oss organizationalboundaries
Consolidate oroutsource learningand developmentfunctions
Increase emphasison people/talentdevelopment
Improve talentmanagement modelsand programs
Improve identificationof stakeholder groupsand establ ishment ofpriori ties
Improve valuedelivered to otherstakeholders(p ubl i c, alumn i , an al ys ts,et c .)
Shorten order-to-del ivery cycle time /Impr ove product andser vice availabi lity
Increase emphasison design forconfigurability/customization
Im prove plat for m andport folio s tr ategies forproducts and serv ices
Increase emphasis ontime-to-market andtime-to-production-volume
Increase num ber andquality of product andservice launches
Increase utili zation ofmodular, reusabledesigns
Im prove collaborationwith design,development andproduction part ners
Im prove reuse ofproduct and servicecomponent s
Im prove managementof product lifecycles(la un ch th ro ug h re tirem en t)
Incr ease emphasis onaccount/relationshipdevelopment
Improve accountmanagement skill s ofs taf f
Im prove incenti ves forproduct developmentand innovation
Improve incent ives foraccount/relationshipdevelopment
Improve accountmanagementstrategies
Shor ten order- to-delivery cyc le time /Improve product andservice avai labilit y
Improve totalcustomer experience(p urc ha sing , f u lf i ll men t ,usa ge , sup po r t, se rvi ce ,etc.)
Im prove execution ofmar ket- and supply-driven promotions
Im prove structur ingand pri cing ofprom otions
Im prove coordinationwith supplier s andsales channels
Impr ove use ofsupply- and capacit y-driven promotions
Increase use ofprom otions
Rationali ze and/orrefocus product andserv ice portfol ios
Impr ove focus onsegments with loweraver age cost -to-ser ve
Im prove collaborationwith partners andcustomers
Increase use ofvendor-managed/vendor-w ar ehousedinventory
Im prove due-datereliabil ity
Manage procurementon a national/ globalbasis
Uti lize national/globalpurchasing pow er
Incr ease focus oncomponent reuse
Reduce procurementcyc le times
Improve collaborationwith vendors
Impr ove design/st ructure ofdistribution netw or ks
Align production andmerchandise orderingschedules wi thdistribution schedules
Impr ove retrievalprocesses
Manage purchasingon a national/globalbasis
Refine and/or alignmer chandis ingstr ategies(c en tral vs. lo ca lmerc ha nd isi n g, et c .)
Im prove use ofnational/ globalpurchasing pow er
Increase use ofvendor-managed/vendor-warehousedinventory
Incr ease use ofvendor-managed/vendor-w arehousedinventory
Increase use ofvendor-managed/vendor-w ar ehousedinventory
Im prove product andserv ice introduction/launch processes
Rationalizeproduction facilities
Rationali ze productionquanti ties and timing
Rationali zemerchandise orderquanti ties and timing
Increase use ofvendor-managed/vendor-w arehousedinventory
Rational ize pr oductionquantities and timing
Increase emphasis onuse of com moncomponent s
Increase utili zationof standardizedcomponent s
Manage materialssourc ing on anational/ global bas is
Increase use ofvendor-managed/vendor-w ar ehousedinventory
Increase emphasis oncustomer retention
Proactively managetransiti on points(li fe e ven ts, en ds o fco ntrac ts an d lea ses , e tc.)
Of fer value-addingproduct and servicebundles
Improve focus onemployee r etention
Improve employeeretention programs
Util ize more effic ientIT systems
Util ize moreflex ible/expandable ITsystems
Improve maintenanceof IT systems
Increase utilizat ion ofIT systems
Divest low- uti lizationIT systems
Improve terms onproduction equipment
Im prove focus ofcompany resourceson high-priorit yiniti atives
Increase emphasis oncross-business-unitand cross-companycollaboration
Increase proacti vepursui t ofpart nerships, mergersand acquisi tions
Incr ease emphasis oncustomer satisfaction
Improve qualityassurance progr ams
Sell or lease excesscapaci ty to otherenter prises(p rod u ctio n ca pa ci ty, s e rv ic ecap a ci ty , e t c.)
Coordinate pri cing ofcomplementaryproducts and services(ra zo rs v. bl ad es / p rodu c t v.shi p pi ng ch arge s, etc.)
Im prove pri ce/marginknow ledge of staf f
Build productmar gins/profit abi lityinto sales incenti ves
Rationali ze portfoli o offinancial serv icesproviders
Impr ove audi t andcompl iancemanagementprocesses
Impr ove businesscase developmentand analysisprocesses
Impr ove breadth,dept h and quality offinancial information(ass e t, bu dg et , p r ice/ c os t,t re a sury , d eb to r /cred i to r,pe rf orma nce , t a x, r isk , et c. )
Impr ove budgetingand for ecastingcapabiliti es
Impr ove financialreporting effic iency
Impr ove assetmanagementprocesses( fixe d a nd var i ab le as se ts )
Im prove integrat ion ofIT systems acrosspart ner netw orks
Increase emphasis onoperational integrationwith partner s
Remove barriers tosw itching
Impr ove contractmanagementprocesses(ne go ti a ti o n, ex ecu t io n a ndco mpl i an ce)
Refine vendor/suppl ier strategies
Consolidate oroutsourcemer chandis ingfunctions
Establ ishcross-companycollabor ation as a keycompetency
Impr ove performanceand reliability of ITsystems/platforms(ap pl i cati on s, eq ui pm ent ,ne t wo rks , e t c. )
Impr ove breadth,dept h, quality andtimeliness of bus inessinf or mation
Impr ove access toand dis tribution ofbusiness information
Develop and utilizeunique IT resour ces(a p pl ic at ions , n et wo rks, et c.)
Improveunderstanding ofcurrent customersatisfaction
Improve v isibili ty ofcustomerrelationships andinteractions across allchannels
Impr ove adherence tocontracts andagreements
Incr ease focus onhigher-value productsand serv ices
Improve focus onhigher-valueadvertis ing channels /media
Focus sales efforts onhigher-marginproducts and services
Increase use of lower -cost sales channels( te le sa le s, ou t le ts, s el f -serv ic e, et c .)
Improve focus onhigher-valuecustomers/segments
Rationali ze and/orrefocus product andserv ice port fol ios
Bypass currentchannels / S elldirectl y to customers
Rationali ze targetedmar kets and customersegments
Improve analyt icalprocesses and tools
Improve channelmanagementprocesses and tools
Outsource pr opertytax adminis trationactiv ities(com pl ia nc e, as se ssm ent,ne go ti a tio ns, e tc .)
Im prove businessperf ormance reportingprocesses
Im prove alignment ofHR and technologystr ategies w ithbusiness strategies
Impr ove manage-ment of regulatorycompliance
Develop and leveragepoliti cal relationshipsand alliances
Develop and culti vategood w ill
Im prove anticipationand understanding ofcurr ent and potentialregulations/legislation
Im prove effectivenessof legislative/lobbyingeff ort s
Acquire companies intargeted geographies
Acquire companieswith relationships intargeted customersegments
Impr ove methods andtools for managingsales and m arketingper formance
Acquire companiesaligned wi th productstr ategies
Im prove methods andtools for managinginnovationperf ormance
Increase focus ondivestitur e andreinvestment
Divest non-performingand non-strategicbusiness units
Align M&A str ategieswith businessobjectives
Im prove/standar dizeM& A processes
Im proveunderstanding ofinternal value andmar ket value ofbusiness units
Increase considera-tion of M&A anddivestitur e options
Improve accountmanagementmethods and tools
Improve salesperfor mancemanagementmethods and tools
Impr ove retentionperformancemanagementmethods and tools
Im prove manager ialmethods and tools
Impr ove methods andtools for managingdem and/supplyper formance
Im prove methods andtools for managingpricing perf ormance
Improve marketingand advertisingperformancemanagementmethods and tools
Improve salesperf ormancemanagementmethods and tools
Impr ove service andsupport performancemanagementmethods and tools
Im prove ordermanagementmethods and tools
Impr ove procurementperformancemanagementmethods and tools
Improve real estateper formancemanagementmethods and tools
Improve HRperfor mancemanagementmethods and tools
Improve/consolidateIT performancemanagementmethods and tools(ut i li za tio n, pe r fo rma nce ,ca pa ci ty plan ni ng , et c. )
Im prove productdevelopmentperf or mancemanagementmethods and tools
Im proveunderstanding ofbusiness unitperf ormance andmar ket values
Consol idate devicemanagementinf ormation and tools
Im prove alignment ofcapital budgets andprogr am plans wi thbusiness priori ties
Im prove alignment ofbusiness uni tstr ategies wi thenter pri se strategies
Impr ove alignment offinancial strategieswith corporat est rat egies
Strengthenent erpr ise-w idefinancial reportingst andards
Increase focus onbusiness insight andforward-lookinginfor mation
Im prove integrat ion ofshort- and long-termbusiness planning
Im prove leader shipand managementsk il ls of executives
Incr ease emphasis oncontinuous, proactivemanagement ofinvestment por tf olios
Improve vendormanagement skil ls ofstaf f
Improve involvementof operat ional staff i nproject delivery
Improveaccountabili ty/author ity of programand pr oject resources
Improve effectivenessof program/pr ojectgovernance models
Increase focus on keyperf ormance metrics
Increase focus onbusiness continui typlanning
Incr ease focus onproject qual ity andrisk management
Incr ease focus onrealization of targetedbusiness benefits
Improve identif icationand management ofprogram/project risks
Continuously trackand manage therealization of projectbenefits
Structure programs/projects to deli verbenefits progressively
Improve access toand distribution ofperf ormanceinformation
Im proveunderstanding ofpart ner strengths,weaknesses andinterests
Im prove ability tostr ucture andimplement durable,mutually benefic ialpart nerships
Impr ove agili ty andflex ibility of partnerorganizations andnet works
Develop and utilizeunique productionresources(m et ho d s, e qu ip me nt ,fa ci li tie s, etc.)
Rationalize/consolidate vendorport foli o
Im prove coordinationof payments acrossbusiness units
Im prove assessmentand benchm arking ofA/P performance
Refine days-outstanding strategy
Im prove alignment ofA/P systems andprocesses w it h days-outstanding strategy
Refine credit/days-receivable strategy
Impr ove managementof cr edi t ri sk acrossbusiness uni ts
Impr ove managementof cr edi t/loan portfol io
How Value is Created(Value Drivers)
What You Can Do(Improvement Levers: Business Processes,Assets and Organizational Capabilities)
Othe r S har ed / Corpo rate Services(R eal Estate, Procurement and Other )
Human Capita l St rate gy an d Man agem ent(R ecruitment, Development, Administration andPerformance Management)
IT S tr ateg y and Managemen t(D esign, Development, Deployment, Oper ations andPerformance Management)
Busine ss S trat egy a nd Ma nag ement(Business and Financial S trat egy, Mergers and A cquisitions, TaxManagement, Risk Management, C ompliance Management , ProgramManagement and Performance Management)
Custo mer St rat egy, Relat ionsh ips an d In teractio ns(Marketing, Sales, Delivery/Provisioning, B i lling and S er vice)
Pr oduct S trateg y, Develop men t and Pr od uct io n(Innovation and Design, S upply Chain Management , ProductionOperations and Logistics)
BUSINESS PROCESS GROUPINGS
All Pr oce ss Grou pin gs(Action may apply to all pr ocesses)
Change What You Do- Wha t you prov ide- Who m you target and serve- How you compete- Whe re you deploy resources- Whi ch operations you outsource
Do What You Do Better- St rengthen governance approach es- Alig n resources wi th st rategies- Imp rove business pro cesses- Hone strategic capabili ties- Manage tax impacts and opportunit ies- Imp rove control / red uce risk- Coll aborate more ef fectively- Sati sfy customers, employees and
other stakeholders
No te : Many actions could logical ly be associated wit hother or multiple process g roupings. For example ,many customer and product actions are l ikely to haveheavy IT and HR components.
Acqu ire New Customers Retain and Grow CurrentCus tomers
Leverage Income-Generating Assets Stren gthen Pricing
ImproveCustomer Interaction
Efficiency
ImproveCorporate/Sh ared Services
Efficiency
ImproveDevelop ment & Production
Effic iency
ImproveLogistics & Ser vice
Provisio nEfficiency
ImprovePP&E
Efficiency
ImproveInvento ryEfficiency
ImproveReceiv ables & Payables
Efficiency
ImproveMan agement & Governance
EffectivenessImprove
Execution Capabilities
Marketing &Sales
AccountManagement
Cross -Sell/Up-Se ll Re tention
Demand &Supply
ManagementPrice
OptimizationMarketing &Advertising Sales
CustomerService &
Support
OrderFulfillment &
BillingIT, Te lecom &
Networking Real Esta te HumanResources
Procurement(Exc luding P roduction
Ma ter ial s &Merc handise)
BusinessManagement
Financ ialManagement Materia ls Produc tion MerchandisingLogis tics &
DistributionProduct
DevelopmentRea l Estate &Infrastructure
Equipment &Systems
FinishedGoods
Work inProcess &
Raw Materia ls
Accounts,Notes &Interest
Rece ivable
Accounts,Notes &Inte restPayable
BusinessPlanning
ProgramDelivery
BusinessPerformanceManagement
Operationa lExce llence
Partnership &Collabora tion
Rela tionshipStrength
Agil ity &Flexibi lity
Product &Service
InnovationServiceDelivery
Cash/As setManagement
St rategicAsse ts
Volume Price RealizationSelling, General &
Administrative(SG&A)
Cost of Goods Sold(COGS)
Property, Plant &Equipment(PP&E)
Inventory Receivables& Payables Company Strengths External Factors
Revenue Growth Operating Margin(after taxes)
Asset Efficiency Expectations
Shareholder Value
Impr ove cust omerincentives foraccelerated/on-timepayment
Im prove cross-selli ng/up-selli ngsk ills of s taff
Improve customerservice and retentionski lls of staff
Increase focus onproduct innovation
Improve managementof tr ade/indirect taxes(sale s/ us e, VA T , GST , e tc . )
Im prove tax collectionand r emittanceprocesses
Improve managementof international s taffcosts(i mmi gr atio n, pa yro ll , s t af fsup po r t, inte rn at ion al eq ui t y,etc.)
Util ize avai lablefederal, state andlocal employm ent/training incentives
Improve technologyand data riskmanagementprocesses
Im prove compl iancemanagementprocesses
Impr ove tax manage-ment processes(di rec t a nd i n di re c t taxman a gem en t )
Optimize tax benefitsassociated with self -constructed assets(p l ant, faci l it ies , inte rn al l y-use d so f tware , etc . )
Improve managementof transfer pr ic ing
Im prove managementof tr ade and indirecttaxes (sal e s/ us e , VAT,GST , et c.)
Improve managementof transfer pric ing
Im prove incor porationof risk analys is inbusiness planning(in te rna l a nd e xte rna l r is k)
Int egrate tax oppor -tuni ties and issuesinto business planningprocesses
Impr ove identif icationand mitigation ofoper ational risk(pe op le , p roc es s, te ch -no l og y, d at a , e tc.)
Improve quality ofinformation providedto stakeholder s(a ccu racy , t imel i ne ss,tran sp are ncy &pr edicta bi li t y)
Develop and utilizeunique informationresources (cus t ome r,pro du ct , ma rke t, etc .)
Improve managementof organizationalchange in support ofini tiatives
Im prove operationalrisk managementprocesses
Im prove considerationof tax impli cations inthe acquisi tion anddispositi on of assets
Maximize tax benefitsassociated with majorbusiness decisions(M &A, co nso li d ati on , o ut -sou rci ng , s it e s elec tio n, etc.)
Increase emphasis onpermanently lower ingthe company'seff ective tax rate
Im prove accuracy andtimeliness of taxprovis ion and cashoutflow forecasts
Im prove focus of taxfunction/departmenton proactive taxplanning
Int egrate tax oppor-tunities and i ssuesinto business planningprocesses
Optimize accountingmethods and selec-tion of accountingperiods
Migrate income tolow -tax juri sdictions
Uti lize inter nationalfi nancing opportuni-ti es to minimize after-tax borrow ing cost s
Optimize expense vs.capitalization of costs(M &A co st s, R& D c osts,etc.)
Im prove ident ifi cat ionand application ofR&D tax incentives
Im prove abili ty toutil ize offshore cash/assets and movebetween geographies
Im prove abil ity touti lize offshore cash/assets and movebetw een geographies
Im prove managementof transfer pricing
Impr ove ability toutili ze of fshore cash/assets and movebet ween geographies
Ensure propervaluation of propertyfor tax purposes
Build tax oppor tunitiesinto real estatetr ansactions(i n com e de f er ra l, lo ca ti oncred its a nd in ce nt ives ,le as in g t erms , e tc .)
Im prove tax benefitsof compensation andbenefit programs(d e fe r re d a nd eq ui t y-ba se dcom p; retire me nt an dhe al th ca re b en efi ts , e tc .)
Manage payr oll taximpacts of businessiniti atives(M &A , co nso li d atio n ,re stru cturi ng , rel o ca ti on etc.)
Optimize util ization ofavailable sales/usetax exemptions
Impr ove managementof indirect taxes(sa le s/ us e, VAT , cus to msdu t ie s, et c. )
Ensur e adequatedocumentation ofsignifi cant taxpositions(e a rn i ngs & p rof its , tran sf e rpri ci ng, t ax o p in io ns , e tc . )
Accelerate or def erincome/expenses
Clarify governanceroles and responsi -biliti es (de le ga t io n o fau th o ri t y, se gre ga tion ofdu tie s, et c. )
Implement/enhanceanonymous employeereporting and feed-back mechanisms
Align compensationand incenti ve systemswith s trategies, valuesand ethics
Impr ove under-s tanding of regulatoryrequir ements
Strengthen corporategovernance structures(com po si tio n, se le ct io n ,rol es , e tc .)
Strengthen training/education of boardand audi t committees
Strengthen andcommunicat e mission,v ision, values andethics
Impr ove focus oninter nal controls andregulatory compliance
Build values andethics into corporateculture
Increase emphasis onri sk identification andmanagement
Impr ove risk planning,mitigation and controlappr oaches
Impr ove moni toringand management ofregulatory compliance
Impr ove company-wide monitoring andmanagement of risks
Impr ove identificationand assessment ofri sk (s trat eg ic , o pe rat ion al ,in ve st me nt , fi na nc ia l, co m-pl i anc e, da t a/ p riva cy , e tc . )
Improve monitor ingand management ofri sk and compliance(st rat eg i c, o p era ti on al an df in an ci al ri sk s; re g ulatoryan d t ax c omp l ia nc e)
D elo itte Enterprise Value Map TM
(Practical paths to increase shareholder value)It’s easy to say shareholder value is important.Not so easy to make it influence the decisionsthat are made every day: where to spend timeand resources, how best to get things done, and,ultimately, how to win in the competitivemarketplace.This Map is designed to accelerate theconnection between actions you can take andshareholder value. It is not rocket science and itis not complete, but it can jump-start theprocess of focusing on the things that mattermost and then choosing practical ways to getthem done.
Here are two simple ways to use it:
Start at the top. Working your way down,at each step ask yourself, How will weimprove this? This will help ensure that yourtactics support your objectives.
Start at the bottom. Working your way up,at each step ask yourself, Why are we doingthis? This will help ensure that every tacticleads to shareholder value.
Impr ove breadth,dept h, qual ity andtimeliness of manag-erial information
Impr ove/implementinter nal controlframeworks andpolic ies
Strengthen andcommunicat egovernance poli ciesand procedures
Align internal auditpractices withbusiness and riskobjectives
Impr ove communi-cation between theboar d, management,shar eholders and thepubl ic
Impr ove mechanismsfor collecting andimplementingemployee ideas
Build innovation andimpr ovement intorewards andincentives
Improve mechanismsfor solic iting andaddress ingstakeholder feedback
Develop/integr ateglobal HR practi ces(i n te rna l/ e xt ern al , o ns ho re/off sho re, etc .)
Income Taxes
ImproveInco me Tax
Efficiency
Income TaxManagement Governance
Improve utili zation oftelecom tax incentives(cre di t s, e xe mp tion s, etc. )
Improve profitability ofR&D efforts throughutilization of tax andeconomic develop-ment incentives
Im prove profitabil ity ofR&D efforts thr oughutil ization of tax andeconomic develop-ment incentives
Im prove track ing andrecovery of indirecttaxes (sal e s/us e, VAT ,GST , etc.)
Ensure tax planningactiv ities and taxfi lings comply withregulatory environ-ment
Increase account-abil ity of businessunit leader s f or taximpact of dec isions
Im prove coordinationof operational, invest-ment, financial, M&A,and tax s trategiesacross business units
Uti lize tax-effectivecorporate s tructuresfor ow nership/li cens-ing of intangibleassets (pa t ents , trad ena mes , I P, e tc . )
Improve benchmark-ing of global effectivetax rate againstindustry peer group
Utilize tax opportuni-ties around r isk man-agement act ivi ties(h e dg in g tran sa ctio ns ,com mod i tie s t ra ding , e tc.)
Defer and reducefeder al , s tate andlocal quarter ly esti-mated tax payments
Consider taxincenti ves in locationand selection offacil it ies
Increase focus onpost-merger syner gyand cost reductionprograms
Impr ove breadth,dept h, quality andtimel iness of bus inessplanning information
Utilize tax-effectivecorporate structur esfor ow nership/l icens-ing of intangibleassets (pa te nts , trad ena mes , I P, e tc . )
Develop and utilizeunique tax expertise
Identify Projects Stakeholders
What does the company need to be good at to succeed?
Use the Value Map as a framework for thinking
13
Identify strategic priorities and key business issues
Strategic Priority
Key Business Issue
Optim ize depreciationmethods/lives forproperty, plant andequipment
Optim ize valuationand costing methodsfor inventories(LIFO, FIFO, uniformcapitalization, shrinkage,obsolescence, etc.)
Ensure full utilizationof tax carryforwards(credits, net operatinglosses, capital losses, etc.)
Consider tax implica-tions in the location/selection of facilities(distribution centers, servicecenters, branches, etc.)
Imp rove salesforecasting andcampaign executionprocesses and tools
Imp roverelationship/accountdevelopmentprocesses
Imp rove sk ills ofsales staff
Provide staff withbetter customerinformation(demographics, inquiryhistory, etc.)
Imp rove staffincentives aroundsales efficiency
Imp rove processesfor generating,qualify ing andassigning leads
Imp rovefield sales andtelesalesprocesses
Consolidate/rea lignsales territories
Imp rove terms withsales channels
Imp rove terms withservice providers(network services, a ir lines,information serv ices, etc.)
Imp rove terms onleased sales assets(computers, vehicles, etc.)
Target newgeographies
Target new segmentswithin currentgeographies
Expand sales andadvertising channels
Acquire new productand service offerings
Pursue joint-venture,partnership and OEMarrangements
Increase focus onhigh-value/high-potential customers
Increase focus onmost profitableproducts and services
Increase focus onmost effective salesand advertisingchannels
Improve brandstrength and good will
Increase time spentselling
Improve quality andassignment of salesleads
Improve access toinformation andanalytical tools
Improve sales andmarketing skills ofstaff
Improve alignment ofstaff incentives withstrategic objectives
Improve effectivenessof marketing,advertising and salesprocesses
Tailor marketing andsales approaches tocustomer segments
Tailor products andservices to newcustomer segments
Evolve product andservice features,functionality and value
Improve totalcustomer experience(purchasing, fu lfillment,usage, support, service,etc.)
Increase focus onhigh-value/high-potential customers
Improveresponsiveness tocustomer complaints/feedback
Improveunderstanding ofcustomer needs
Proactively managetransition points(li fe events, ends ofcontracts and leases, etc.)
Tailor accountmanagementapproaches tocustomer segments
Maintain competitivefunctionality and value
Tailor cross-sell/up-sell offers to customerneeds
Implement pricing andaffinity programsbased on volume andbreadth
Offer value-addingproduct and servicebundles
Improve effectivenessof cross-sell/up-sellprocesses
Implement proactiveand reactive cross-sell and up-sellcampaigns
Improve staffincentives for cross-selling/up-selling
Improve identificationof cross-sell/up-sellopportunities
Increase focus onhigh-value/high-potential customers
Increase focus onmost profitableproducts and serv ices
Increase focus onmost effective salesand advertisingchannels
Imp rove retention andwin-back processes
Build customersatisfaction andretention into staffincentives
Imp roveunderstanding ofchurn/defectiondrivers
Imp rove iden tificationof churn/defectioncandidates
Increase focus onhigh-value /high-potential customers
Imp rovecompetitiveness ofproduct and serviceoffe rings
Shorten time-to-market
Improve brandawareness / Elevatebrand image
Increase emphasison supply chainmanagement(production, d istribution andsales p ipelines)
Obtain exclusiveagreements withpartners(licenses, distributorships,etc.)
Improve features andfunctionality ofproducts and services
Improve quality andreliability of productsand services
Improve product andservice lifecyc lemanagement
Improvecommunication andcoordination withdistribution centers
Improvecommunication andcoordination withsales channels
Improve focus onhigher-valuesegments
Rationalize and/orrefocus channel/media usage
Rationalize and/orrefocus product andservice portfolios
Rationalize targetedcustomer segments
Improve campaigndesign andmanagementprocesses and tools
Improve skills ofmarketing staff
Improve staffincentives aroundmarketing efficiency
Provide staff withbetter market andcustomer information
Improve definition ofproduct and servicespecification
Improve product andservice launchprocesses
Provide staff withbetter competitiveinformation
Improve tailoring ofmarketing andadvertis ingapp roaches tocustomer segments
Improve terms withadvertis ing channels
Improve terms withservice providers(researchers, informationserv ices, advertisingchannels, etc.)
Improve emphasis onproduct quality andease of service
Design products fo rease-of-use / self-service
Route low-valuetransactions to lower-cost sales channels
Improve routing ofservice requests toappropriate staff
Increase use of lower-cost serv ice andinformation channels(contact centers, automatedvoice response, web, etc.)
Improve workforceplanning and dispa tchprocesses and tools
Improve capacity/demand planningprocesses, skills andtools
Improve service andsupport processes
Improve skills ofservice staff
Provide staff withbetter customerinformation(profiles, transactionhistories, etc.)
Improve incentivesaround serviceefficiency andeffectiveness
Improve terms withservice prov iders(network services,outsourced functions, etc.)
Improve terms onleased service assets(computers, vehicles, etc.)
Improve forecasting,planning andprioritization skills andtools
Improve creditanalys isprocesses
Improve skills of ordermanagement andbilling staff
Provide staff withbetter customer andorder information
Improve incentivesaround ordermanagementeffic iency
Improve pick, packand ship processes
Improveprovisioning/installation processes
Improve invoic ing/billing processes
Improve policies andprocesses aroundmerchandise returns
Improve terms withservice providers(delivery services,outsourced functions, etc.)
Improve terms onleased assets(computers, vehicles, etc.)
Consolidate and/orre-architect da tastores
Increase utilization ofIT, telecom andnetwork resources(servers , routers, networkcapacity, etc.)
Improve design,development andtesting processes
Improve processes formanaging systemoperations, mainten-ance and changes
Improve end-usersupport andadministrationprocesses
Improve selection,acquisition andcontractingprocesses
Improve installation/deploymentprocesses
Improve technical andproject managementskills of staff
Improve dispatch,diagnostic, resolutionand replacementprocesses
Improve incentivesaround IT/networkefficiency
Improve terms withservice providers(contrac tors, networkservices, cons ultants, etc.)
Improve terms onpurchased and leasedassets (PCs, servers,network equipment, leasedlines, etc.)
Improve terms onpurchased and leasedreal estate, furnitureand fixtures
Increase utilization ofreal estate
Improve capacity/demand planningprocesses and tools
Improve real estatedesign and develop-ment processes
Improve operationalprocesses(administration, security ,energy, HVAC andmaintenance)
Improve real estateselection, acquis itionand contractingprocesses
Improve real estateimprovement anddeploymentprocesses
Improve terms withservice prov iders(security, energy, etc.)
Improve terms onimprovements(HVAC, cabling, etc .)
Improve terms withthird-party productand service providers(payro ll, benefits, training,etc)
Reduce salary andbenefits costs /Improve value ofemployee benefits
Improve capacity/demand planningprocesses and tools
Implement/improvecompany-wideprocesses and toolsfor assessing staffperformance
Improverecruitment andorientation processes
Improve skills of HRstaff
Provide staff withbetter HR informationand tools
Improvetrainingprocesses
Improve salary andbenefits administra-tion processes /Increase employeeself-service
Improvepayrollprocesses
Improveperformanceassessmentprocesses
Rationalize/consolidate vendorportfolio
Increase focus onhigher-value vendorpartnerships
Improve collabo rationwith vendors
Increase use of lower-cost channels(self-service, etc.)
Improve assignmentof procurementtransactions toappropriate staff
Improve demandplanning processesand tools
Improve productprocurementprocesses(equipment, supplies, etc.)
Improve serv iceprocurementprocesses(trav el, contract labor, etc.)
Improve contractingand negotiation sk illsof procurement staff
Provide staff withbetter product andservice information
Improve incentivesaround procurementeffic iency
Improve terms onequipment andsupplies
Improve terms withservice providers(equipment maintenance,delivery, warehousing, etc.)
Improve terms withservice providers(information services,consul tants, etc.)
Improvestrategic planningprocesses
Improve skills ofbusinessmanagement staff
Provide staff withbetter managerialinformation and tools
Improve incentivesaround businessplanning efficiency
Improveprogram planningprocesses
Improve capitalbudgetingprocesses
Improveprogrammanagementprocesses
Improveaccounting andmeasurementprocesses
Improve terms withfinancial servicesproviders
Improvecash/treasurymanagementpractices
Improve skills offinancial managementstaff
Improve incentivesaround financialmanagementefficiency
Improve debt andequity managementprocesses
Increase focus onmaterials-efficientproductionmechanisms
Rationalize and/orrefocus productportfolio
Increase emphasis ondesigning formaterials efficiency
Rationalize/consolidate vendorportfolio
Focus efforts onhigher-value vendorrelationships
Improve terms onmaterials purchases
Rationalize orderquantities and timing
Improve materialsperformancemanagementmethods and tools
Improve demandforecastingprocesses, skills andtools
Improve ordering andreceipt processes(raw materials, in termediatemateria ls, fin ishedcomponents, etc.)
Improve materialsefficiency ofproduction processes
Improve contractingand negotiation skillsof purchasing staff
Provide staff withbetter productinformation and tools
Design products touse cost-effectivematerials
Improve terms withservice providers(delivery, warehousing, etc.)
Rationalize and/orrefocus productportfolio
Improve focus onhigher-value products
Rationalize productionquantities and timing
Increase use of lower-cost productionchannels
Improve terms withservice providers(outsourced functions, etc.)
Improve termson equipmentpurchases
Improve productionperformancemanagementmethods and tools
Improve demandforecastingprocesses, skills andtools
Improve capacityplanning processes,skills and tools
Improveproduction schedulingand stagingprocesses
Improve utilization ofproduction channels /Reduce downtime
Improve skills ofproduction staff
Provide staff withbetter productioninformation and tools
Improve incentivesaround productionefficiency
Improve coordinationwith businesspartners
Improvemanufacturing andquality controlprocesses
Rationalize and/orrefocus productportfolio
Rationalize/consolidate vendorportfolio
Improve focus onhigher-value vendorrelationships
Improve terms onmerchandisepurchases
Rationalize orderquantities and timing
Improvemerchandisingperformancemanagementmethods and tools
Improve demandforecastingprocesses, skills andtools
Improve assignmentof transactions toappropriate staff
Improvemerchandiseordering and receiptprocesses
Improve skills ofmerchandising staff
Provide staff withbetter information andtools
Improve incentivesaround merchandisingefficiency
Improve coordinationwith vendors
Improve terms withservice providers(delivery, warehousing, etc.)
Rationalize and/orrefocus productportfolio
Increase emphasis ondesigning andpackagingfor dis tribution
Increase quality andconsistency ofmaterials
Rationalize productionquantities and timing
Rationalizemerchandise orderquantities and timing
Increase use of lower-cost logistics anddistribution channels
Imp rove inventoryreceipt and storageprocesses
Imp rove transport anddelivery processes/algorithms
Imp rove sk ills ofinventory anddistribution staff
Provide staff withbetter information andtools
Imp rove incentivesaround inventory/distribution efficiency
Imp rove logis ticsperformancemanagementmethods and tools
Imp rove demandforecastingprocesses, skills andtools
Imp rove terms withservice providers(transport, warehousing,etc.)
Improve focus onhigher-value customersegments andproducts
Rationalize and/orrealign productdevelopmentefforts
Increase use of lower-cost productdevelopmentchannels
Improve productconception/initiationprocesses
Improve utilization ofproduct developmentchannels
Improve skills ofproduct developmentstaff
Improve definition ofproduct and servicespecifications
Improve incentivesaround productdevelopmentefficiency
Improveprototyping, pilotingand testing processes
Improvedesign anddevelopmentprocesses
Improve identificationand discontinuation ofunsuccessfulefforts
License or acquireproducts andintellectual property
Develop businessmodels with low realestate requirements
Reduce number ofdata centers, branchoffices, dealerships,retail outlets , etc.
Outsource businessfunctions
Increase use ofleased real estate
Improve termson property andfacilities
Reconfigure facilities /Increase utilization offacilities
Increase use offlexible facilities
Divest low -utilizationreal estate
Rationalize and/orrefocus product andservice portfolios
Outsource businessfunctions
Increaseuse of leasedproduction equipment
Improve terms on ITsystems
Increase use offlexible/expandableproduction equipment
Increase emphasis ondesign formanufacturability andservice
Divest low-utilizationequipment
Improveeffectiveness of plantmaintenance
Improve termson infrastructure
Divest low -utilizationinfrastructure
Increaseuse of flex ible andexpandableinfrastructure
Increase use ofleased infrastructure
Rationalize and/orrefocus productportfolio
Rationalize and/orrefocus customersegments anddistribution channels
Develop low-Inventorybusiness models
Increase emphasison build-to-order
Improve terms onmerchandise
Improvecollaboration withvendors/partners
Improvedemand forecasting
Consolidateinventory
Improve logistics/distribution efficiency
Divest low-demand/obsolete inventory
Rationalize and/orrefocus productportfolio
Shorten productioncyc les
Rationalize rawmaterials
Increase use of just-in-time procurement
Improvedemand forecasting
Improve terms onmaterials
Divest obsoletematerials
Coordinatemanagement ofcredit/receivablesacross business units
Increase focus oncustomer segmentswith low credit/loanneeds
Tighten credit/loanterms
Improve assessmentand benchmarking ofcredit/receivablesperformance
Improve managementof delinquentaccounts
Coordinatemanagement ofpayables acrossbusiness units
Leverage credit ratingto lengthen paymentcyc les and reduceinterest rates
Leverage breadth ofvendor relationshipsto lengthen paymentcyc les
Improve managementof debt portfolio
Improve identificationand prediction ofindustry and markettrends
Improve identificationof opportunities andthreats
Improve strategydevelopment capa-bilities at corporateand business-unitlevels
Improve alignment ofbudgets and capitalprograms withstrategic pr iorities
Improve executivedevelopment,recruiting andsuccession planning
Improve identification,assessment andexecution ofM&A/divestitureopportunities
Improvecommunication ofstrategic directionsand priorities
Improve structuringand launch ofcohesive programportfolios
Improve coordinationand communicationacross programs andprojects
Improve program/project managementmethods and tools
Improve alignment ofprojects with programand businessobjectives
Improvemeasurement andreporting ofoperational andfinancial performance
Improve analysis ofmanagerialinformation
Improve focus onmost importantmanagerialinformation
Improvecommunicationaround improvementpriorities
Improve abilityto launchimprovement efforts
Improve quality andconsistency ofperformanceassessment methods
Improve careeroptions and paths
Align managementand staff incentiveswith companyperformance
Improve monetaryand non-monetaryrecognition of staffcontr ibutions
Improve breadth,depth, quality andtimeliness of perform-ance information
Improve effectivenessof organizationalstructures andgovernance models
Increase emphasis onquality managementand benchmarking
Improveprocess innovationskills of staff
Improve depthand breadth of stafftechnical skills
Improve qualityand speed ofcommunication withpartners
Improve ability tointegrate mergedand acquiredorganizations
Improve ability toidentify and assesspartneringopportunities
Improvemanagement ofpartner relationships
Improve integration ofbusiness processesacross partnernetworks
Improve valuedelivered tocustomers
Improve valuedelivered to partners(vendors, channel partners,etc.)
Improve valuedelivered toemployees
Improve identificationof opportunities toincrease value tostakeholders
Improve understand-ing of stakeholderinterests (cus tomers,shareholders, regulators,employees, suppliers,partners, alumni , etc.)
Improve conversion ofstrong relationshipsinto sources of com-petitive advantage
Improvecommunication withstakeholder groups
Improve agility andflexibility oforganizationalstructures
Improve agility andflexibility ofgovernance models
Improve flexibilityof bus inessprocesses
Improve versatility ofmanagers and staff
Improve flexibilityand versatility of ITsystems andplatforms
Rationalizecustomer portfolio
Improveresponsiveness tocustomer requestsand inquiries
Improve tracking ofcustomer interactions(purchases, supportrequests, etc.)
Imp rove iden tificationof valuable customerrelationships
Refocus and/or refineretention priorities andstra tegies
Create barriers toswitching
Solicit and respond tocustomer feedback
Imp lement affinityprograms
Increase emphasison differentiatedproducts and services
Improve demandforecasting
Improveunderstanding ofcustomer, productand channelprofitability
Consolidate oroutsource service andsupport operations
Differentiate servicetreatment ofcustomers/segments
Provide staff withbetter product andservice information
Improve financialrisk managementprocesses
Increase use of lower-cost delivery/installation channels(sel f-service, par tners, etc.)
Increase use of lower-cost billing channels(automated, self-service,etc.)
Differentiate treatmentof customers/segments
Improve emphasis ondesign for packing/shipping efficiency
Consolidate oroutsource orderfulfillment functions(pick, pack and ship,insta ll, provision, etc.)
Consolidate oroutsource billingoperations
Consolidate oroutsource design,development anddeployment services
Consolidate oroutsource operationsand maintenanceservices
Consolidate oroutsource end-usersupport
Consolidate companyreal estate/facilities
Consolidate oroutsource design anddevelopmentfunctions
Rationalize ITapplication portfolio
Consolidate oroutsourceimprovement anddeployment
Consolidate oroutsource propertymanagementfunctions
Increase use of lower-cost real estate andfacilities / Relocatebusiness operations
Consolidate oroutsource benefitsadministrationfunctions
Consolidate oroutsource payrollfunctions
Consolidate oroutsource recruitmentfunctions
Refine vendorstrategies
Standardize productcatalogs(equipment, office supplies,promotional mater ials , etc.)
Consolidate oroutsourceprocurement functions
Consolidate and/oralign businessplanning,management andreporting functions
Improve alignment oforganization struc-tures and governancemodels with businessstrategies
Consolidate and/oralign financialplanning,management andreporting functions
Consolidate and/oralign financialaccounting andanalysis functions
Improve incentivesaround procurementefficiency
Increase emphasis ondesign for productionefficiency
Consolidate oroutsource productionfunctions
Refine/alignlogistics anddistribution strategies
Increase focus onhigher-value productsand partners
Consolidate/outsource logisticsand distributionfunctions
Rationalize and/orre focus product andservice portfolios
Consolidate oroutsource productdevelopmentfunctions
Increase emphasis onmodular , extensible,scalable designs
ConsolidateIT systems,production lines andservice mechanisms
Increase emphasis onhigh-turn products
Increase emphasis ondesigning formanufacturingefficiency
Improvecollaboration withvendors/partners
Increase emphasis ondesigning formaterials efficiency
Increase focus onvendors withfavorable paymentterms
Increase emphasison risk-informed,scenario-basedplanning
Increase emphasis onenterprise-wideprogram planning andcollaborative programdelivery
Increase emphasison continuous,proactive perform-ance management
Improvedetermination of keyperformance metricsand targets
Establish a culturecentered onoperationalexcellence
Increase focus onpartnership, mergerand acquisitionopportunities
Increase focus onstakeholderrelationships
Establish processimprovement andinnovation as keycompetencies
Establishmanagement of keystakeholderrelationships asorganizational p riority
Increase focus onbusiness agility andflexibility
Establish agility andflexibility as keycompetencies
Increase integration ofbusiness processesacross organizationalboundaries
Improvepartnership andcollaboration skills ofstaff
Imp rove utilization ofsales staff
Improve utilization ofservice staff
Provide staff withbetter product, serviceand competitiveinformation
Implemen t integratedapplications acrossorganizationalboundaries
Consolidate IT,telecom and networkequipment andfacilities
Utilize moreefficient productionequipment
Improve quality andconsistency ofmanufacturingmaterials
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Improve value /Decrease prices
Improve assessmentand benchmarking ofbusiness processperformance
Improve sharing ofknowledge acrossorganizationalboundaries
Improve sharing ofknowledge acrossorganizationalboundaries
Improve businesscontinuity planningand disaster recoverycapabilities
Improve ability todevelop and spin-offnew businesses
Increase focus on riskmanagement andregulatory compliance
Improve focus onpr ice-insensitivecustomer segments
Increase emphasis ondifferentiated pricingacross customersegments
Improveunderstanding ofcustomer pricesensitivity
Align advertising withpr ic ing strategies
Improve tailoring ofofferings to customerneeds
Increase use ofdifferential pricingmechanisms (based oncustomer value, risk, etc.)
Increase emphasison preventiveequipmentmaintenance
Defer/change timingof capital investments
Increase utilization ofproduction equipment
Increase focus onmanagerial, forward-looking information
Improveunderstanding ofproduct/service valueto customers
Increase focus onpr icing effectiveness/pr ice optimization
Increase focus onR&D, productinnovation, andproduct leadership
Broaden product andservice offerings
Improve product/service R&Dand dep loymentcapabilities
Adapt currentproducts and serv icesfor new segments/channels
Improve product- andservice-innovationskills of staff
Increase emphasis onservice prevention /Reduce need forservice
Increase emphasis ondesigning for serviceefficiency and self-service
Route low-valuetransactions to lower-cost sales channels
Improve routing ofservice requests toappropriate servicechannels
Increase use ofcheaper servicechannels
Improve serviceperformancemanagementmethods and tools
Improve workforceplanning, dispatchand assignmentprocessesand tools
Improve capacity/demand planningprocesses, skills andtools
Improve service andsupport processes
Improve skills ofservice staff
Provide staff withbetter customerinformation(profiles, transactionhistories , etc.)
Improve staffincen tives aroundservice efficiency
Improve terms withservice providers(outsourced services,network services,information services, etc.)
Improve terms onleased service assets(computers, vehicles, etc.)
Consolidate oroutsource serviceoperations
Differentiate treatmentof customers/segments
Provide staff withbetter product, serviceand contractinformation
Rationalize and/orrefocus servicesoffered
Improve utilization ofservice staff
Improve focus onhigher-value customerrelationships
Convert free servicesto fee-based services
Align product andservice pr ices withvalue to customers
Establish product,service and processinnovation as keycompetencies
Improve productinnovation processes
Improve product,service and processinnovation skills ofstaff
Improve assignmentof accountability andauthority
Improve effectivenessof organ izationalstructures
Dynamically cancel orredirect ineffective/obsolete programsand projects
Improve tracking andcommunication ofprogram/projectprogress
Improve assignmentof resources toprojects
Improve program/project managementskills of staff
Improve managementof vendors/serviceproviders
Establish program/project delivery as akey competency
Improve alignment ofcustomer, product,advertising, sales,service, support, andfulfillment strategies
Develop , spin-off andsell new businesses
Improve investmentreturns on cash/treasury funds
License or sellintellectual capital toother en terprises
Improve brandstrength and good will
Imp rove brandstrength and good will
Sell appreciatedassets
Increase emphasis ongenerating revenuefrom company assets
Increase focus ondeveloping andprotecting intellectualcapital
Increase focus oncreditworthy customersegments
Improve collectionsprocesses
Improve andstandardize creditassessmentprocesses
Differentiate credittreatment ofcustomers/segments
Improveunderstanding ofcustomer needs
Increase focus onexpansion ofcustomerrelationships
Improve product andservice withdrawaland retirementprocesses
Acquire competitors
Improveestablishment of andadherence to service-level targets
Increase use ofdistance/on-linelearning
Establish customercommunities
Improve cross-selland up-sellapproaches/models
Apply brand to newand unb randedproducts
Develop and leveragestrong/unique partnerrelationships
Develop and leveragestrong brand
Develop strongcustomerrelationships andcommunities
Develop and utilizeunique physicalresources(facil ities, land, etc.)
Develop and utilizeunique humanresources(thought leaders, managers,subject matter exper ts, etc.)
Develop and leverageintellectual capital(copyrights, patents,trademarks, etc.)
Increase focus onstrategic assets
Improve assetdevelopment skills ofmanagement andstaff
Improve incentivesaround assetdevelopment
Establishdevelopment ofstrategic assets as akey competency
Increase emphasis onleveraging strategicassets
Shorten productioncycles
Improve developmentand analysis ofbusiness cases
Improve security ofapplications, systemsand data
Improve costaccounting andallocation of shared/overhead costs
Improve recruitingeffectiveness
Improve relationshipmanagementstrategies for keystakeholder groups
Improve valuedelivered toshareholders
Rationalize and/orrefocus product andservice portfolios
Rationalize and/orrefocus product andservice portfolios
Improve physicalsecurity of people
Improvecommunication andknowledge transferacross organizationalboundaries
Consolidate oroutsource learningand developmentfunctions
Increase emphasison people/talentdevelopment
Improve talentmanagement modelsand programs
Improve identificationof stakeholder groupsand establishment ofpriorities
Improve valuedelivered to otherstakeholders(public, alumni, analysts,etc.)
Shorten order-to-delivery cycle time /Improve product andservice availability
Increase emphasison design forconfigurability/customization
Improve platform andportfolio s trategies forproducts and serv ices
Increase emphasis ontime-to-market andtime-to-production-volume
Increase number andquality of product andservice launches
Increase utilization ofmodular , reusabledesigns
Improve collaborationwith design,development andproduction partners
Improve reuse ofproduct and servicecomponents
Improve managementof product lifecyc les(launch through retirement)
Increase emphasis onaccount/relationshipdevelopment
Improve accountmanagement skills ofstaff
Improve incentives forproduct developmentand innovation
Improve incentives foraccount/relationshipdevelopment
Improve accountmanagementstrategies
Shorten order-to-delivery cycle time /Improve product andservice availability
Improve totalcustomer experience(purchasing, fulfillment,usage, support, service,etc.)
Improve execution ofmarket- and supply-dr iven promotions
Improve structuringand pricing ofpromotions
Improve coordinationwith suppliers andsales channels
Improve use ofsupply- and capacity-dr iven promotions
Increase use ofpromotions
Rationalize and/orrefocus product andservice portfolios
Improve focus onsegments with loweraverage cost-to-serve
Improve collaborationwith partners andcustomers
Increase use ofvendor-managed/vendor-warehousedinventory
Improve due-datereliability
Manage procurementon a national/globalbasis
Utilize national/globalpurchasing power
Increase focus oncomponent reuse
Reduce procuremen tcyc le times
Improve collaborationwith vendors
Imp rove design/structure ofdistribution networks
Align production andmerchandise orderingschedules withdistribution schedules
Imp rove retrievalprocesses
Manage purchasingon a national/globalbasis
Refine and/or alignmerchandisingstrategies(central vs. localmerchandising, etc.)
Improve use ofnational/globalpurchasing power
Increase use ofvendor-managed/vendor-warehousedinventory
Increase use ofvendor-managed/vendor-warehousedinventory
Increase use ofvendor-managed/vendor-warehousedinventory
Improve product andservice introduction/launch processes
Rationalizeproduction facilities
Rationalize productionquantities and timing
Rationalizemerchandise orderquantities and timing
Increase use ofvendor-managed/vendor-warehousedinventory
Rationalize productionquantities and timing
Increase emphasis onuse of commoncomponents
Increase utilizationof standardizedcomponents
Manage materialssourcing on anational/global basis
Increase use ofvendor-managed/vendor-warehousedinventory
Increase emphasis oncustomer retention
Proactively managetransition points(life events, ends ofcontracts and leases, etc.)
Offer value-addingproduct and servicebundles
Improve focus onemployee retention
Improve employeeretention programs
Utilize more efficientIT systems
Utilize moreflexible/expandable ITsystems
Improve maintenanceof IT systems
Increase utilization ofIT systems
Divest low-utilizationIT systems
Improve terms onproduction equipment
Improve focus ofcompany resourceson high-priorityinitiatives
Increase emphasis oncross-business-unitand cross-companycollaboration
Increase proactivepursuit ofpartnerships, mergersand acquisitions
Increase emphasis oncustomer satisfaction
Improve qualityassurance programs
Sell or lease excesscapacity to otherenterprises(production capacity, servicecapaci ty, etc.)
Coordinate pr icing ofcomplementaryproducts and services(razors v. blades / product v.sh ipping charges, etc.)
Improve price/marginknowledge of staff
Build productmargins/profitabilityinto sales incentives
Rationalize portfolio offinancial servicesproviders
Improve audit andcompliancemanagementprocesses
Improve businesscase developmentand analysisprocesses
Improve breadth,depth and quality offinancial information(ass et, budget, price/cost,treasury, debtor/creditor,performance, tax, risk, etc.)
Improve budgetingand forecastingcapabilities
Improve financialreporting efficiency
Improve assetmanagementprocesses(fixed and var iable assets)
Improve integration ofIT systems acrosspartner networks
Increase emphasis onoperational integrationwith partners
Remove barriers toswitching
Improve contractmanagementprocesses(negotiation, execution andcompliance)
Refine vendor/supplier strategies
Consolidate oroutsourcemerchandisingfunctions
Establishcross-companycollaboration as a keycompetency
Improve performanceand reliability of ITsystems/platforms(applications, equipment,networks, etc.)
Improve breadth,depth, quality andtimeliness of businessinformation
Improve access toand dis tribution ofbusiness information
Develop and utilizeunique IT resources(applications, networks, etc.)
Improveunderstanding ofcurrent customersatis faction
Improve visibility ofcustomerrelationships andinteractions across allchannels
Imp rove adherence tocontracts andagreements
Increase focus onhigher-value productsand services
Improve focus onhigher-valueadvertis ing channels/media
Focus sales efforts onhigher-marginproducts and services
Increase use of lower-cost sales channels(telesales, outle ts, sel f-service, etc.)
Imp rove focus onhigher-valuecustomers/segments
Rationalize and/orrefocus product andservice portfolios
Bypass currentchannels / Selldirectly to customers
Rationalize targetedmarkets and customersegments
Improve analyticalprocesses and tools
Improve channelmanagementprocesses and tools
Outsource propertytax administrationactivities(compliance, assessment,negotia tions, etc .)
Improve businessperformance reportingprocesses
Improve alignment ofHR and technologystrategies withbusiness strategies
Improve manage-ment of regulatorycompliance
Develop and leveragepolitical relationshipsand alliances
Develop and cultivategood w ill
Improve anticipationand understanding ofcurrent and potentialregulations/legislation
Improve effectivenessof legislative/lobbyingefforts
Acquire companies intargeted geographies
Acquire companieswith relationships intargeted customersegments
Improve methods andtools for managingsales and marketingperformance
Acquire companiesaligned with productstrategies
Improve methods andtools for managinginnovationperformance
Increase focus ondivestiture andreinvestment
Divest non-performingand non-strategicbusiness units
Align M&A strategieswith businessobjectives
Improve/standardizeM&A processes
Improveunderstanding ofinternal value andmarket value ofbusiness units
Increase considera-tion of M&A anddivestiture options
Improve accountmanagementmethods and tools
Improve salesperformancemanagementmethods and tools
Imp rove retentionperformancemanagementmethods and tools
Improve managerialmethods and tools
Improve methods andtools for managingdemand/supplyperformance
Improve methods andtools for managingpr icing performance
Improve marketingand advertisingperformancemanagementmethods and tools
Imp rove salesperformancemanagementmethods and tools
Improve service andsupport performancemanagementmethods and tools
Improve ordermanagementmethods and tools
Improve procurementperformancemanagementmethods and tools
Improve real estateperformancemanagementmethods and tools
Improve HRperformancemanagementmethods and tools
Improve/consolidateIT performancemanagementmethods and tools(utilization, performance,capacity planning, etc.)
Improve productdevelopmentperformancemanagementmethods and tools
Improveunderstanding ofbusiness unitperformance andmarket values
Consolidate devicemanagementinformation and tools
Improve alignment ofcapital budgets andprogram plans withbusiness priorities
Improve alignment ofbusiness unitstrategies withenterprise strategies
Improve alignment offinancial strategieswith corporatestrategies
Strengthenenterprise-widefinancial reportingstandards
Increase focus onbusiness insight andforward-lookinginformation
Improve integration ofshort- and long-termbusiness planning
Improve leadershipand managementskills of executives
Increase emphasis oncontinuous, proactivemanagement ofinvestment portfolios
Improve vendormanagement skills ofstaff
Improve involvementof operational staff inproject delivery
Improveaccountability/authority of programand project resources
Improve effectivenessof program/projectgovernance models
Increase focus on keyperformance metrics
Increase focus onbusiness continuityplanning
Increase focus onproject quality andrisk management
Increase focus onrealization of targetedbusiness benefits
Improve identificationand management ofprogram/project r isks
Continuously trackand manage therealization of projectbenefits
Structure programs/projects to deliverbenefits progressively
Improve access toand distribution ofperformanceinformation
Improveunderstanding ofpartner strengths,weaknesses andinterests
Improve ability tostructure andimplement durable,mutually beneficialpartnerships
Improve agility andflexibility of partnerorganizations andnetworks
Develop and utilizeunique productionresources(methods, equipment,facilities, etc.)
Rationalize/consolidate vendorportfolio
Improve coordinationof payments acrossbusiness units
Improve assessmentand benchmarking ofA/P performance
Refine days-outstanding strategy
Improve alignment ofA/P systems andprocesses with days-outstanding strategy
Refine credit/days-receivable strategy
Improve managementof credit risk acrossbusiness units
Improve managementof credit/loan portfolio
How Value is Created(Value Drivers)
What You Can Do(Improvement Levers: Business Processes,Assets and Organizational Capabilities)
Other Shared / Corporate Services(Real Estate, Procurement and Other)
Human Capital Strategy and Management(Recruitment, Development, Administration andPerformance Management)
IT Strategy and Management(Design, Development, Deployment, Operations andPerformance Management)
Business Strategy and Management(Business and Financial S trategy, Mergers and Acquisitions, TaxManagement , Risk Management, Compliance Management , ProgramManagement and Performance Management)
Customer Strategy, Relationships and Interactions(Marketing, Sales, Delivery/Provisioning, Billing and Service)
Product Strategy, Development and Production(Innovation and Design, Supply Chain Management, ProductionOperations and Logistics)
BUSINESS PROCESS GROUPINGS
All Process Groupings(Action may apply to all processes)
Change What You Do- What you provide- Whom you target and serve- How you compete- Where you deploy resources- Which operations you outsource
Do What You Do Better- Strengthen governance approaches- Align resources with strategies- Improve business processes- Hone strategic capabilities- Manage tax impacts and opportunities- Improve control / reduce risk- Collaborate more effectively- Satisfy customers, employees and
other stakeholders
Note: Many actions could logically be associated withother or multiple process groupings. For example,many customer and product actions are likely to haveheavy IT and HR components.
Acquire New Customers Retain and Grow CurrentCustomers
Leverage Income-Generating Assets Strengthen Pricing
ImproveCustomer Interaction
Efficiency
ImproveCorporate/Shared Services
Efficiency
ImproveDevelopment & Production
Efficiency
ImproveLogistics & Service
ProvisionEfficiency
ImprovePP&E
Efficiency
ImproveInventoryEfficiency
ImproveReceivables & Payables
Efficiency
ImproveManagement & Governance
EffectivenessImprove
Execution Capabilities
Marketing &Sales
AccountManagement
Cross-Sell/Up-Sell Retention
Demand &Supply
ManagementPrice
OptimizationMarketing &Advertising Sales
CustomerService &Support
OrderFulfillment &
BillingIT, Telecom &
Networking Real Estate HumanResources
Procurement(Excluding Production
Materials &Merchandise)
BusinessManagement
FinancialManagement Materials Production MerchandisingLogistics &
DistributionProduct
DevelopmentReal Estate &Infrastructure
Equipment &Systems
FinishedGoods
Work inProcess &
Raw Materials
Accounts,Notes &Interest
Receivable
Accounts,Notes &InterestPayable
BusinessPlanning
ProgramDelivery
BusinessPerformanceManagement
OperationalExcellence
Partnership &Collaboration
RelationshipStrength
Agility &Flexibility
Product &Service
InnovationServiceDelivery
Cash/AssetManagement
StrategicAssets
Volume Price RealizationSelling, General &
Administrative(SG&A)
Cost of Goods Sold(COGS)
Property, Plant &Equipment
(PP&E)Inventory Receivables
& Payables Company Strengths External Factors
Revenue Growth Operating Margin(after taxes)
Asset Efficiency Expectations
Shareholder Value
Improve customerincentives foraccelerated/on-timepayment
Improve cross-selling/up-sellingskills of staff
Imp rove customerservice and retentionskills of staff
Increase focus onproduct innovation
Imp rove managementof trade/indirect taxes(sales/use, VAT, GST, etc.)
Improve tax collectionand remittanceprocesses
Improve managementof international staffcosts(immigration, payrol l, staffsuppor t, international equity,etc.)
Utilize availablefederal, state andlocal employment/training incentives
Improve technologyand data riskmanagementprocesses
Improve compliancemanagementprocesses
Improve tax manage-ment processes(direct and indirect taxmanagement)
Optim ize tax benefitsassociated with self-constructed assets(plant, facilities, internally-used software, etc.)
Improve managementof transfer pricing
Improve managementof trade and indirecttaxes (sa les/use , VAT,GST, etc.)
Improve managementof transfer pricing
Improve incorporationof risk analysis inbusiness planning(internal and external risk)
Integrate tax oppor-tunities and issuesinto business planningprocesses
Improve identificationand mitigation ofoperational r isk(people, process, tech-nology, data, etc.)
Improve quality ofinformation providedto stakeholders(accuracy, timeliness,transparency &predictabi lity)
Develop and utilizeunique informationresources (customer,product, market, e tc.)
Improve managementof organizationalchange in support ofinitiatives
Improve operationalrisk managementprocesses
Improve considerationof tax implications inthe acquisition anddisposition of assets
Maximize tax benefitsassociated with majorbusiness decisions(M&A, consolidation, out-sourcing, site se lection, etc.)
Increase emphasis onpermanently loweringthe company'seffective tax rate
Improve accuracy andtimeliness of taxprovis ion and cashoutflow forecasts
Improve focus of taxfunction/departmenton proactive taxplanning
Integrate tax oppor-tunities and issuesinto business planningprocesses
Optim ize accountingmethods and selec-tion of accountingperiods
Migrate income tolow-tax jurisdictions
Utilize internationalfinancing opportuni-ties to minimize after-tax borrowing costs
Optim ize expense vs.capitalization of costs(M&A costs, R&D costs,etc.)
Improve iden tificationand application ofR&D tax incentives
Improve ability toutilize offshore cash/assets and movebetween geographies
Improve ability toutilize offshore cash/assets and movebetween geographies
Improve managementof transfer pricing
Improve ability toutilize offshore cash/assets and movebetween geographies
Ensure propervaluation of propertyfor tax purposes
Build tax opportunitiesinto real estatetransactions(income deferral, locationcredits and incentives ,leasing terms, etc.)
Improve tax benefitsof compensation andbenefit programs(deferred and equity-basedcomp; reti rement andhealthcare benefits, e tc.)
Manage payroll taximpacts of businessinitiatives(M&A, consolidation,restructuring, re location etc.)
Optimize utilization ofavailable sales/usetax exemptions
Improve managementof indirect taxes(sales/use, VAT, customsduties, etc.)
Ensure adequatedocumentation ofsignificant taxpositions(earn ings & profits, transferpricing, tax opin ions, etc.)
Accelerate or deferincome/expenses
Clarify governanceroles and responsi-bilities (delegation ofauthority, segregation ofduties, etc.)
Implement/enhanceanonymous employeereporting and feed-back mechanisms
Align compensationand incentive systemswith strategies, valuesand ethics
Improve under-standing of regulatoryrequirements
Strengthen corporategovernance structures(composition, selection,roles, etc.)
Strengthen training/education of boardand audit committees
Strengthen andcommunicate mission,vision, values andethics
Improve focus oninternal controls andregulatory compliance
Build values andethics into corporateculture
Increase emphasis onrisk identification andmanagement
Improve risk planning,mitigation and controlapproaches
Improve monitoringand management ofregulatory compliance
Improve company-wide monitoring andmanagement of risks
Improve identificationand assessment ofrisk (strategic, operational ,investment, financial, com-pliance, data/privacy, etc.)
Improve monitoringand management ofrisk and compliance(strategic, operational andfinancial risks; regulatoryand tax compliance)
D eloi tte Enterprise Value Map T M
(Practical paths to increase shareholder value)It’s easy to say shareholder value is important.Not so easy to make it influence the decisionsthat are made every day: where to spend timeand resources, how best to get things done, and,ultimately, how to win in the competitivemarketplace.This Map is designed to accelerate theconnection between actions you can take andshareholder value. It is not rocket science and itis not complete, but it can jump-start theprocess of focusing on the things that mattermost and then choosing practical ways to getthem done.
Here are two simple ways to use it: Start at the top. Working your way down,
at each step ask yourself, How will weimprove this? This will help ensure that yourtactics support your objectives.
Start at the bottom. Working your way up,at each step ask yourself, Why are we doingthis? This will help ensure that every tacticleads to shareholder value.
Improve breadth,depth, quality andtimeliness of manag-er ial information
Improve/implementinternal controlframeworks andpolicies
Strengthen andcommunicategovernance policiesand procedures
Align internal auditpractices withbusiness and riskobjectives
Improve communi-cation between theboard, management,shareholders and thepublic
Improve mechanismsfor collecting andimplementingemployee ideas
Build innovation andimprovement intorewards andincen tives
Improve mechanismsfor soliciting andaddressingstakeholder feedback
Develop/integrateglobal HR practices(in ternal/external, onshore/offshore, etc.)
Income Taxes
ImproveIncome Tax
Efficiency
Income TaxManagement Governance
Improve utilization oftelecom tax incentives(credi ts, exemptions, etc.)
Improve profitability ofR&D efforts throughutilization of tax andeconomic develop-ment incentives
Improve profitability ofR&D efforts throughutilization of tax andeconomic develop-ment incentives
Improve tracking andrecovery of indirecttaxes (sales/use, VAT,GST , etc.)
Ensure tax planningactivities and taxfilings comply withregulatory environ-ment
Increase account-ability of businessunit leaders for taximpact of decisions
Improve coordinationof operational, invest-ment, financial, M&A,and tax strategiesacross business units
Utilize tax-effectivecorporate structuresfor ownership/licens-ing of intangibleassets (patents, tradenames, IP, etc.)
Improve benchmark-ing of global effectivetax rate againstindustry peer group
Utilize tax opportuni-ties around risk man-agement activities(hedging transactions,commodities trading, etc.)
Defer and reducefederal, state andlocal quarterly esti-mated tax payments
Consider taxincentives in locationand selection offacilities
Increase focus onpost-merger synergyand cost reductionprograms
Improve breadth,depth, quality andtimeliness of businessplanning information
Utilize tax-effectivecorporate structuresfor ownership/licens-ing of intangibleassets (patents, tradenames, IP, etc.)
Develop and utilizeunique tax expertise
14
How well is the company performing compared to its peers?
Step 2 – Measure Performance
Shareholder Value
Revenue Growth Operating Margin(after taxes) Asset Efficiency Expectations
Volume Price Realization SG&A COGS Income Tax PP&E Inventory Receivables
&PayablesCompany Strengths
External Factors
Total Shareholder Return
Economic MarginA
C-C- C- D
C- B+ C- B+ C A
D
Measure & Grade Understand Develop
hypotheses ValidateIdentify Projects Stakeholders
• How strong is current performance? • What trends are emerging?• What are the key areas for improvement?
15
Step 2 – Measure Performance (cont)
B = X-Year Financial Performance Relative to Peer Group (A = Leading, B = Above Average, C = Average, D = Below Avg.
= Improving / Deteriorating Lately
Relative Financial Performance (X-Year)
Strategic Priority
Key Business Issue
Optim ize depreciationmethods/lives forproperty, plant andequipment
Optim ize valuationand costing methodsfor inventories(LIFO, FIFO, uniformcapitalization, shrinkage,obsolescence, etc.)
Ensure full utilizationof tax carryforwards(credits, net operatinglosses, capital losses, etc.)
Consider tax implica-tions in the location/selection of facilities(distribution centers, servicecenters, branches, etc.)
Imp rove salesforecasting andcampaign executionprocesses and tools
Imp roverelationship/accountdevelopmentprocesses
Imp rove sk ills ofsales staff
Provide staff withbetter customerinformation(demographics, inquiryhistory, etc.)
Imp rove staffincentives aroundsales efficiency
Imp rove processesfor generating,qualify ing andassigning leads
Imp rovefield sales andtelesalesprocesses
Consolidate/rea lignsales territories
Imp rove terms withsales channels
Imp rove terms withservice providers(network services, a ir lines,information serv ices, etc.)
Imp rove terms onleased sales assets(computers, vehicles, etc.)
Target newgeographies
Target new segmentswithin currentgeographies
Expand sales andadvertising channels
Acquire new productand service offerings
Pursue joint-venture,partnership and OEMarrangements
Increase focus onhigh-value/high-potential customers
Increase focus onmost profitableproducts and services
Increase focus onmost effective salesand advertisingchannels
Improve brandstrength and good will
Increase time spentselling
Improve quality andassignment of salesleads
Improve access toinformation andanalytical tools
Improve sales andmarketing skills ofstaff
Improve alignment ofstaff incentives withstrategic objectives
Improve effectivenessof marketing,advertising and salesprocesses
Tailor marketing andsales approaches tocustomer segments
Tailor products andservices to newcustomer segments
Evolve product andservice features,functionality and value
Improve totalcustomer experience(purchasing, fu lfillment,usage, support, service,etc.)
Increase focus onhigh-value/high-potential customers
Improveresponsiveness tocustomer complaints/feedback
Improveunderstanding ofcustomer needs
Proactively managetransition points(li fe events, ends ofcontracts and leases, etc.)
Tailor accountmanagementapproaches tocustomer segments
Maintain competitivefunctionality and value
Tailor cross-sell/up-sell offers to customerneeds
Implement pricing andaffinity programsbased on volume andbreadth
Offer value-addingproduct and servicebundles
Improve effectivenessof cross-sell/up-sellprocesses
Implement proactiveand reactive cross-sell and up-sellcampaigns
Improve staffincentives for cross-selling/up-selling
Improve identificationof cross-sell/up-sellopportunities
Increase focus onhigh-value/high-potential customers
Increase focus onmost profitableproducts and serv ices
Increase focus onmost effective salesand advertisingchannels
Imp rove retention andwin-back processes
Build customersatisfaction andretention into staffincentives
Imp roveunderstanding ofchurn/defectiondrivers
Imp rove iden tificationof churn/defectioncandidates
Increase focus onhigh-value /high-potential customers
Imp rovecompetitiveness ofproduct and serviceoffe rings
Shorten time-to-market
Improve brandawareness / Elevatebrand image
Increase emphasison supply chainmanagement(production, d istribution andsales p ipelines)
Obtain exclusiveagreements withpartners(licenses, distributorships,etc.)
Improve features andfunctionality ofproducts and services
Improve quality andreliability of productsand services
Improve product andservice lifecyc lemanagement
Improvecommunication andcoordination withdistribution centers
Improvecommunication andcoordination withsales channels
Improve focus onhigher-valuesegments
Rationalize and/orrefocus channel/media usage
Rationalize and/orrefocus product andservice portfolios
Rationalize targetedcustomer segments
Improve campaigndesign andmanagementprocesses and tools
Improve skills ofmarketing staff
Improve staffincentives aroundmarketing efficiency
Provide staff withbetter market andcustomer information
Improve definition ofproduct and servicespecification
Improve product andservice launchprocesses
Provide staff withbetter competitiveinformation
Improve tailoring ofmarketing andadvertis ingapp roaches tocustomer segments
Improve terms withadvertis ing channels
Improve terms withservice providers(researchers, informationserv ices, advertisingchannels, etc.)
Improve emphasis onproduct quality andease of service
Design products fo rease-of-use / self-service
Route low-valuetransactions to lower-cost sales channels
Improve routing ofservice requests toappropriate staff
Increase use of lower-cost serv ice andinformation channels(contact centers, automatedvoice response, web, etc.)
Improve workforceplanning and dispa tchprocesses and tools
Improve capacity/demand planningprocesses, skills andtools
Improve service andsupport processes
Improve skills ofservice staff
Provide staff withbetter customerinformation(profiles, transactionhistories, etc.)
Improve incentivesaround serviceefficiency andeffectiveness
Improve terms withservice prov iders(network services,outsourced functions, etc.)
Improve terms onleased service assets(computers, vehicles, etc.)
Improve forecasting,planning andprioritization skills andtools
Improve creditanalys isprocesses
Improve skills of ordermanagement andbilling staff
Provide staff withbetter customer andorder information
Improve incentivesaround ordermanagementeffic iency
Improve pick, packand ship processes
Improveprovisioning/installation processes
Improve invoic ing/billing processes
Improve policies andprocesses aroundmerchandise returns
Improve terms withservice providers(delivery services,outsourced functions, etc.)
Improve terms onleased assets(computers, vehicles, etc.)
Consolidate and/orre-architect da tastores
Increase utilization ofIT, telecom andnetwork resources(servers , routers, networkcapacity, etc.)
Improve design,development andtesting processes
Improve processes formanaging systemoperations, mainten-ance and changes
Improve end-usersupport andadministrationprocesses
Improve selection,acquisition andcontractingprocesses
Improve installation/deploymentprocesses
Improve technical andproject managementskills of staff
Improve dispatch,diagnostic, resolutionand replacementprocesses
Improve incentivesaround IT/networkefficiency
Improve terms withservice providers(contrac tors, networkservices, cons ultants, etc.)
Improve terms onpurchased and leasedassets (PCs, servers,network equipment, leasedlines, etc.)
Improve terms onpurchased and leasedreal estate, furnitureand fixtures
Increase utilization ofreal estate
Improve capacity/demand planningprocesses and tools
Improve real estatedesign and develop-ment processes
Improve operationalprocesses(administration, security ,energy, HVAC andmaintenance)
Improve real estateselection, acquis itionand contractingprocesses
Improve real estateimprovement anddeploymentprocesses
Improve terms withservice prov iders(security, energy, etc.)
Improve terms onimprovements(HVAC, cabling, etc .)
Improve terms withthird-party productand service providers(payro ll, benefits, training,etc)
Reduce salary andbenefits costs /Improve value ofemployee benefits
Improve capacity/demand planningprocesses and tools
Implement/improvecompany-wideprocesses and toolsfor assessing staffperformance
Improverecruitment andorientation processes
Improve skills of HRstaff
Provide staff withbetter HR informationand tools
Improvetrainingprocesses
Improve salary andbenefits administra-tion processes /Increase employeeself-service
Improvepayrollprocesses
Improveperformanceassessmentprocesses
Rationalize/consolidate vendorportfolio
Increase focus onhigher-value vendorpartnerships
Improve collabo rationwith vendors
Increase use of lower-cost channels(self-service, etc.)
Improve assignmentof procurementtransactions toappropriate staff
Improve demandplanning processesand tools
Improve productprocurementprocesses(equipment, supplies, etc.)
Improve serv iceprocurementprocesses(trav el, contract labor, etc.)
Improve contractingand negotiation sk illsof procurement staff
Provide staff withbetter product andservice information
Improve incentivesaround procurementeffic iency
Improve terms onequipment andsupplies
Improve terms withservice providers(equipment maintenance,delivery, warehousing, etc.)
Improve terms withservice providers(information services,consul tants, etc.)
Improvestrategic planningprocesses
Improve skills ofbusinessmanagement staff
Provide staff withbetter managerialinformation and tools
Improve incentivesaround businessplanning efficiency
Improveprogram planningprocesses
Improve capitalbudgetingprocesses
Improveprogrammanagementprocesses
Improveaccounting andmeasurementprocesses
Improve terms withfinancial servicesproviders
Improvecash/treasurymanagementpractices
Improve skills offinancial managementstaff
Improve incentivesaround financialmanagementefficiency
Improve debt andequity managementprocesses
Increase focus onmaterials-efficientproductionmechanisms
Rationalize and/orrefocus productportfolio
Increase emphasis ondesigning formaterials efficiency
Rationalize/consolidate vendorportfolio
Focus efforts onhigher-value vendorrelationships
Improve terms onmaterials purchases
Rationalize orderquantities and timing
Improve materialsperformancemanagementmethods and tools
Improve demandforecastingprocesses, skills andtools
Improve ordering andreceipt processes(raw materials, in termediatemateria ls, fin ishedcomponents, etc.)
Improve materialsefficiency ofproduction processes
Improve contractingand negotiation skillsof purchasing staff
Provide staff withbetter productinformation and tools
Design products touse cost-effectivematerials
Improve terms withservice providers(delivery, warehousing, etc.)
Rationalize and/orrefocus productportfolio
Improve focus onhigher-value products
Rationalize productionquantities and timing
Increase use of lower-cost productionchannels
Improve terms withservice providers(outsourced functions, etc.)
Improve termson equipmentpurchases
Improve productionperformancemanagementmethods and tools
Improve demandforecastingprocesses, skills andtools
Improve capacityplanning processes,skills and tools
Improveproduction schedulingand stagingprocesses
Improve utilization ofproduction channels /Reduce downtime
Improve skills ofproduction staff
Provide staff withbetter productioninformation and tools
Improve incentivesaround productionefficiency
Improve coordinationwith businesspartners
Improvemanufacturing andquality controlprocesses
Rationalize and/orrefocus productportfolio
Rationalize/consolidate vendorportfolio
Improve focus onhigher-value vendorrelationships
Improve terms onmerchandisepurchases
Rationalize orderquantities and timing
Improvemerchandisingperformancemanagementmethods and tools
Improve demandforecastingprocesses, skills andtools
Improve assignmentof transactions toappropriate staff
Improvemerchandiseordering and receiptprocesses
Improve skills ofmerchandising staff
Provide staff withbetter information andtools
Improve incentivesaround merchandisingefficiency
Improve coordinationwith vendors
Improve terms withservice providers(delivery, warehousing, etc.)
Rationalize and/orrefocus productportfolio
Increase emphasis ondesigning andpackagingfor dis tribution
Increase quality andconsistency ofmaterials
Rationalize productionquantities and timing
Rationalizemerchandise orderquantities and timing
Increase use of lower-cost logistics anddistribution channels
Imp rove inventoryreceipt and storageprocesses
Imp rove transport anddelivery processes/algorithms
Imp rove sk ills ofinventory anddistribution staff
Provide staff withbetter information andtools
Imp rove incentivesaround inventory/distribution efficiency
Imp rove logis ticsperformancemanagementmethods and tools
Imp rove demandforecastingprocesses, skills andtools
Imp rove terms withservice providers(transport, warehousing,etc.)
Improve focus onhigher-value customersegments andproducts
Rationalize and/orrealign productdevelopmentefforts
Increase use of lower-cost productdevelopmentchannels
Improve productconception/initiationprocesses
Improve utilization ofproduct developmentchannels
Improve skills ofproduct developmentstaff
Improve definition ofproduct and servicespecifications
Improve incentivesaround productdevelopmentefficiency
Improveprototyping, pilotingand testing processes
Improvedesign anddevelopmentprocesses
Improve identificationand discontinuation ofunsuccessfulefforts
License or acquireproducts andintellectual property
Develop businessmodels with low realestate requirements
Reduce number ofdata centers, branchoffices, dealerships,retail outlets , etc.
Outsource businessfunctions
Increase use ofleased real estate
Improve termson property andfacilities
Reconfigure facilities /Increase utilization offacilities
Increase use offlexible facilities
Divest low -utilizationreal estate
Rationalize and/orrefocus product andservice portfolios
Outsource businessfunctions
Increaseuse of leasedproduction equipment
Improve terms on ITsystems
Increase use offlexible/expandableproduction equipment
Increase emphasis ondesign formanufacturability andservice
Divest low-utilizationequipment
Improveeffectiveness of plantmaintenance
Improve termson infrastructure
Divest low -utilizationinfrastructure
Increaseuse of flex ible andexpandableinfrastructure
Increase use ofleased infrastructure
Rationalize and/orrefocus productportfolio
Rationalize and/orrefocus customersegments anddistribution channels
Develop low-Inventorybusiness models
Increase emphasison build-to-order
Improve terms onmerchandise
Improvecollaboration withvendors/partners
Improvedemand forecasting
Consolidateinventory
Improve logistics/distribution efficiency
Divest low-demand/obsolete inventory
Rationalize and/orrefocus productportfolio
Shorten productioncyc les
Rationalize rawmaterials
Increase use of just-in-time procurement
Improvedemand forecasting
Improve terms onmaterials
Divest obsoletematerials
Coordinatemanagement ofcredit/receivablesacross business units
Increase focus oncustomer segmentswith low credit/loanneeds
Tighten credit/loanterms
Improve assessmentand benchmarking ofcredit/receivablesperformance
Improve managementof delinquentaccounts
Coordinatemanagement ofpayables acrossbusiness units
Leverage credit ratingto lengthen paymentcyc les and reduceinterest rates
Leverage breadth ofvendor relationshipsto lengthen paymentcyc les
Improve managementof debt portfolio
Improve identificationand prediction ofindustry and markettrends
Improve identificationof opportunities andthreats
Improve strategydevelopment capa-bilities at corporateand business-unitlevels
Improve alignment ofbudgets and capitalprograms withstrategic pr iorities
Improve executivedevelopment,recruiting andsuccession planning
Improve identification,assessment andexecution ofM&A/divestitureopportunities
Improvecommunication ofstrategic directionsand priorities
Improve structuringand launch ofcohesive programportfolios
Improve coordinationand communicationacross programs andprojects
Improve program/project managementmethods and tools
Improve alignment ofprojects with programand businessobjectives
Improvemeasurement andreporting ofoperational andfinancial performance
Improve analysis ofmanagerialinformation
Improve focus onmost importantmanagerialinformation
Improvecommunicationaround improvementpriorities
Improve abilityto launchimprovement efforts
Improve quality andconsistency ofperformanceassessment methods
Improve careeroptions and paths
Align managementand staff incentiveswith companyperformance
Improve monetaryand non-monetaryrecognition of staffcontr ibutions
Improve breadth,depth, quality andtimeliness of perform-ance information
Improve effectivenessof organizationalstructures andgovernance models
Increase emphasis onquality managementand benchmarking
Improveprocess innovationskills of staff
Improve depthand breadth of stafftechnical skills
Improve qualityand speed ofcommunication withpartners
Improve ability tointegrate mergedand acquiredorganizations
Improve ability toidentify and assesspartneringopportunities
Improvemanagement ofpartner relationships
Improve integration ofbusiness processesacross partnernetworks
Improve valuedelivered tocustomers
Improve valuedelivered to partners(vendors, channel partners,etc.)
Improve valuedelivered toemployees
Improve identificationof opportunities toincrease value tostakeholders
Improve understand-ing of stakeholderinterests (cus tomers,shareholders, regulators,employees, suppliers,partners, alumni , etc.)
Improve conversion ofstrong relationshipsinto sources of com-petitive advantage
Improvecommunication withstakeholder groups
Improve agility andflexibility oforganizationalstructures
Improve agility andflexibility ofgovernance models
Improve flexibilityof bus inessprocesses
Improve versatility ofmanagers and staff
Improve flexibilityand versatility of ITsystems andplatforms
Rationalizecustomer portfolio
Improveresponsiveness tocustomer requestsand inquiries
Improve tracking ofcustomer interactions(purchases, supportrequests, etc.)
Imp rove iden tificationof valuable customerrelationships
Refocus and/or refineretention priorities andstra tegies
Create barriers toswitching
Solicit and respond tocustomer feedback
Imp lement affinityprograms
Increase emphasison differentiatedproducts and services
Improve demandforecasting
Improveunderstanding ofcustomer, productand channelprofitability
Consolidate oroutsource service andsupport operations
Differentiate servicetreatment ofcustomers/segments
Provide staff withbetter product andservice information
Improve financialrisk managementprocesses
Increase use of lower-cost delivery/installation channels(sel f-service, par tners, etc.)
Increase use of lower-cost billing channels(automated, self-service,etc.)
Differentiate treatmentof customers/segments
Improve emphasis ondesign for packing/shipping efficiency
Consolidate oroutsource orderfulfillment functions(pick, pack and ship,insta ll, provision, etc.)
Consolidate oroutsource billingoperations
Consolidate oroutsource design,development anddeployment services
Consolidate oroutsource operationsand maintenanceservices
Consolidate oroutsource end-usersupport
Consolidate companyreal estate/facilities
Consolidate oroutsource design anddevelopmentfunctions
Rationalize ITapplication portfolio
Consolidate oroutsourceimprovement anddeployment
Consolidate oroutsource propertymanagementfunctions
Increase use of lower-cost real estate andfacilities / Relocatebusiness operations
Consolidate oroutsource benefitsadministrationfunctions
Consolidate oroutsource payrollfunctions
Consolidate oroutsource recruitmentfunctions
Refine vendorstrategies
Standardize productcatalogs(equipment, office supplies,promotional mater ials , etc.)
Consolidate oroutsourceprocurement functions
Consolidate and/oralign businessplanning,management andreporting functions
Improve alignment oforganization struc-tures and governancemodels with businessstrategies
Consolidate and/oralign financialplanning,management andreporting functions
Consolidate and/oralign financialaccounting andanalysis functions
Improve incentivesaround procurementefficiency
Increase emphasis ondesign for productionefficiency
Consolidate oroutsource productionfunctions
Refine/alignlogistics anddistribution strategies
Increase focus onhigher-value productsand partners
Consolidate/outsource logisticsand distributionfunctions
Rationalize and/orre focus product andservice portfolios
Consolidate oroutsource productdevelopmentfunctions
Increase emphasis onmodular , extensible,scalable designs
ConsolidateIT systems,production lines andservice mechanisms
Increase emphasis onhigh-turn products
Increase emphasis ondesigning formanufacturingefficiency
Improvecollaboration withvendors/partners
Increase emphasis ondesigning formaterials efficiency
Increase focus onvendors withfavorable paymentterms
Increase emphasison risk-informed,scenario-basedplanning
Increase emphasis onenterprise-wideprogram planning andcollaborative programdelivery
Increase emphasison continuous,proactive perform-ance management
Improvedetermination of keyperformance metricsand targets
Establish a culturecentered onoperationalexcellence
Increase focus onpartnership, mergerand acquisitionopportunities
Increase focus onstakeholderrelationships
Establish processimprovement andinnovation as keycompetencies
Establishmanagement of keystakeholderrelationships asorganizational p riority
Increase focus onbusiness agility andflexibility
Establish agility andflexibility as keycompetencies
Increase integration ofbusiness processesacross organizationalboundaries
Improvepartnership andcollaboration skills ofstaff
Imp rove utilization ofsales staff
Improve utilization ofservice staff
Provide staff withbetter product, serviceand competitiveinformation
Implemen t integratedapplications acrossorganizationalboundaries
Consolidate IT,telecom and networkequipment andfacilities
Utilize moreefficient productionequipment
Improve quality andconsistency ofmanufacturingmaterials
© 2004. All rights reserved. Confidential. 0104
Improve value /Decrease prices
Improve assessmentand benchmarking ofbusiness processperformance
Improve sharing ofknowledge acrossorganizationalboundaries
Improve sharing ofknowledge acrossorganizationalboundaries
Improve businesscontinuity planningand disaster recoverycapabilities
Improve ability todevelop and spin-offnew businesses
Increase focus on riskmanagement andregulatory compliance
Improve focus onpr ice-insensitivecustomer segments
Increase emphasis ondifferentiated pricingacross customersegments
Improveunderstanding ofcustomer pricesensitivity
Align advertising withpr ic ing strategies
Improve tailoring ofofferings to customerneeds
Increase use ofdifferential pricingmechanisms (based oncustomer value, risk, etc.)
Increase emphasison preventiveequipmentmaintenance
Defer/change timingof capital investments
Increase utilization ofproduction equipment
Increase focus onmanagerial, forward-looking information
Improveunderstanding ofproduct/service valueto customers
Increase focus onpr icing effectiveness/pr ice optimization
Increase focus onR&D, productinnovation, andproduct leadership
Broaden product andservice offerings
Improve product/service R&Dand dep loymentcapabilities
Adapt currentproducts and serv icesfor new segments/channels
Improve product- andservice-innovationskills of staff
Increase emphasis onservice prevention /Reduce need forservice
Increase emphasis ondesigning for serviceefficiency and self-service
Route low-valuetransactions to lower-cost sales channels
Improve routing ofservice requests toappropriate servicechannels
Increase use ofcheaper servicechannels
Improve serviceperformancemanagementmethods and tools
Improve workforceplanning, dispatchand assignmentprocessesand tools
Improve capacity/demand planningprocesses, skills andtools
Improve service andsupport processes
Improve skills ofservice staff
Provide staff withbetter customerinformation(profiles, transactionhistories , etc.)
Improve staffincen tives aroundservice efficiency
Improve terms withservice providers(outsourced services,network services,information services, etc.)
Improve terms onleased service assets(computers, vehicles, etc.)
Consolidate oroutsource serviceoperations
Differentiate treatmentof customers/segments
Provide staff withbetter product, serviceand contractinformation
Rationalize and/orrefocus servicesoffered
Improve utilization ofservice staff
Improve focus onhigher-value customerrelationships
Convert free servicesto fee-based services
Align product andservice pr ices withvalue to customers
Establish product,service and processinnovation as keycompetencies
Improve productinnovation processes
Improve product,service and processinnovation skills ofstaff
Improve assignmentof accountability andauthority
Improve effectivenessof organ izationalstructures
Dynamically cancel orredirect ineffective/obsolete programsand projects
Improve tracking andcommunication ofprogram/projectprogress
Improve assignmentof resources toprojects
Improve program/project managementskills of staff
Improve managementof vendors/serviceproviders
Establish program/project delivery as akey competency
Improve alignment ofcustomer, product,advertising, sales,service, support, andfulfillment strategies
Develop , spin-off andsell new businesses
Improve investmentreturns on cash/treasury funds
License or sellintellectual capital toother en terprises
Improve brandstrength and good will
Imp rove brandstrength and good will
Sell appreciatedassets
Increase emphasis ongenerating revenuefrom company assets
Increase focus ondeveloping andprotecting intellectualcapital
Increase focus oncreditworthy customersegments
Improve collectionsprocesses
Improve andstandardize creditassessmentprocesses
Differentiate credittreatment ofcustomers/segments
Improveunderstanding ofcustomer needs
Increase focus onexpansion ofcustomerrelationships
Improve product andservice withdrawaland retirementprocesses
Acquire competitors
Improveestablishment of andadherence to service-level targets
Increase use ofdistance/on-linelearning
Establish customercommunities
Improve cross-selland up-sellapproaches/models
Apply brand to newand unb randedproducts
Develop and leveragestrong/unique partnerrelationships
Develop and leveragestrong brand
Develop strongcustomerrelationships andcommunities
Develop and utilizeunique physicalresources(facil ities, land, etc.)
Develop and utilizeunique humanresources(thought leaders, managers,subject matter exper ts, etc.)
Develop and leverageintellectual capital(copyrights, patents,trademarks, etc.)
Increase focus onstrategic assets
Improve assetdevelopment skills ofmanagement andstaff
Improve incentivesaround assetdevelopment
Establishdevelopment ofstrategic assets as akey competency
Increase emphasis onleveraging strategicassets
Shorten productioncycles
Improve developmentand analysis ofbusiness cases
Improve security ofapplications, systemsand data
Improve costaccounting andallocation of shared/overhead costs
Improve recruitingeffectiveness
Improve relationshipmanagementstrategies for keystakeholder groups
Improve valuedelivered toshareholders
Rationalize and/orrefocus product andservice portfolios
Rationalize and/orrefocus product andservice portfolios
Improve physicalsecurity of people
Improvecommunication andknowledge transferacross organizationalboundaries
Consolidate oroutsource learningand developmentfunctions
Increase emphasison people/talentdevelopment
Improve talentmanagement modelsand programs
Improve identificationof stakeholder groupsand establishment ofpriorities
Improve valuedelivered to otherstakeholders(public, alumni, analysts,etc.)
Shorten order-to-delivery cycle time /Improve product andservice availability
Increase emphasison design forconfigurability/customization
Improve platform andportfolio s trategies forproducts and serv ices
Increase emphasis ontime-to-market andtime-to-production-volume
Increase number andquality of product andservice launches
Increase utilization ofmodular , reusabledesigns
Improve collaborationwith design,development andproduction partners
Improve reuse ofproduct and servicecomponents
Improve managementof product lifecyc les(launch through retirement)
Increase emphasis onaccount/relationshipdevelopment
Improve accountmanagement skills ofstaff
Improve incentives forproduct developmentand innovation
Improve incentives foraccount/relationshipdevelopment
Improve accountmanagementstrategies
Shorten order-to-delivery cycle time /Improve product andservice availability
Improve totalcustomer experience(purchasing, fulfillment,usage, support, service,etc.)
Improve execution ofmarket- and supply-dr iven promotions
Improve structuringand pricing ofpromotions
Improve coordinationwith suppliers andsales channels
Improve use ofsupply- and capacity-dr iven promotions
Increase use ofpromotions
Rationalize and/orrefocus product andservice portfolios
Improve focus onsegments with loweraverage cost-to-serve
Improve collaborationwith partners andcustomers
Increase use ofvendor-managed/vendor-warehousedinventory
Improve due-datereliability
Manage procurementon a national/globalbasis
Utilize national/globalpurchasing power
Increase focus oncomponent reuse
Reduce procuremen tcyc le times
Improve collaborationwith vendors
Imp rove design/structure ofdistribution networks
Align production andmerchandise orderingschedules withdistribution schedules
Imp rove retrievalprocesses
Manage purchasingon a national/globalbasis
Refine and/or alignmerchandisingstrategies(central vs. localmerchandising, etc.)
Improve use ofnational/globalpurchasing power
Increase use ofvendor-managed/vendor-warehousedinventory
Increase use ofvendor-managed/vendor-warehousedinventory
Increase use ofvendor-managed/vendor-warehousedinventory
Improve product andservice introduction/launch processes
Rationalizeproduction facilities
Rationalize productionquantities and timing
Rationalizemerchandise orderquantities and timing
Increase use ofvendor-managed/vendor-warehousedinventory
Rationalize productionquantities and timing
Increase emphasis onuse of commoncomponents
Increase utilizationof standardizedcomponents
Manage materialssourcing on anational/global basis
Increase use ofvendor-managed/vendor-warehousedinventory
Increase emphasis oncustomer retention
Proactively managetransition points(life events, ends ofcontracts and leases, etc.)
Offer value-addingproduct and servicebundles
Improve focus onemployee retention
Improve employeeretention programs
Utilize more efficientIT systems
Utilize moreflexible/expandable ITsystems
Improve maintenanceof IT systems
Increase utilization ofIT systems
Divest low-utilizationIT systems
Improve terms onproduction equipment
Improve focus ofcompany resourceson high-priorityinitiatives
Increase emphasis oncross-business-unitand cross-companycollaboration
Increase proactivepursuit ofpartnerships, mergersand acquisitions
Increase emphasis oncustomer satisfaction
Improve qualityassurance programs
Sell or lease excesscapacity to otherenterprises(production capacity, servicecapaci ty, etc.)
Coordinate pr icing ofcomplementaryproducts and services(razors v. blades / product v.sh ipping charges, etc.)
Improve price/marginknowledge of staff
Build productmargins/profitabilityinto sales incentives
Rationalize portfolio offinancial servicesproviders
Improve audit andcompliancemanagementprocesses
Improve businesscase developmentand analysisprocesses
Improve breadth,depth and quality offinancial information(ass et, budget, price/cost,treasury, debtor/creditor,performance, tax, risk, etc.)
Improve budgetingand forecastingcapabilities
Improve financialreporting efficiency
Improve assetmanagementprocesses(fixed and var iable assets)
Improve integration ofIT systems acrosspartner networks
Increase emphasis onoperational integrationwith partners
Remove barriers toswitching
Improve contractmanagementprocesses(negotiation, execution andcompliance)
Refine vendor/supplier strategies
Consolidate oroutsourcemerchandisingfunctions
Establishcross-companycollaboration as a keycompetency
Improve performanceand reliability of ITsystems/platforms(applications, equipment,networks, etc.)
Improve breadth,depth, quality andtimeliness of businessinformation
Improve access toand dis tribution ofbusiness information
Develop and utilizeunique IT resources(applications, networks, etc.)
Improveunderstanding ofcurrent customersatis faction
Improve visibility ofcustomerrelationships andinteractions across allchannels
Imp rove adherence tocontracts andagreements
Increase focus onhigher-value productsand services
Improve focus onhigher-valueadvertis ing channels/media
Focus sales efforts onhigher-marginproducts and services
Increase use of lower-cost sales channels(telesales, outle ts, sel f-service, etc.)
Imp rove focus onhigher-valuecustomers/segments
Rationalize and/orrefocus product andservice portfolios
Bypass currentchannels / Selldirectly to customers
Rationalize targetedmarkets and customersegments
Improve analyticalprocesses and tools
Improve channelmanagementprocesses and tools
Outsource propertytax administrationactivities(compliance, assessment,negotia tions, etc .)
Improve businessperformance reportingprocesses
Improve alignment ofHR and technologystrategies withbusiness strategies
Improve manage-ment of regulatorycompliance
Develop and leveragepolitical relationshipsand alliances
Develop and cultivategood w ill
Improve anticipationand understanding ofcurrent and potentialregulations/legislation
Improve effectivenessof legislative/lobbyingefforts
Acquire companies intargeted geographies
Acquire companieswith relationships intargeted customersegments
Improve methods andtools for managingsales and marketingperformance
Acquire companiesaligned with productstrategies
Improve methods andtools for managinginnovationperformance
Increase focus ondivestiture andreinvestment
Divest non-performingand non-strategicbusiness units
Align M&A strategieswith businessobjectives
Improve/standardizeM&A processes
Improveunderstanding ofinternal value andmarket value ofbusiness units
Increase considera-tion of M&A anddivestiture options
Improve accountmanagementmethods and tools
Improve salesperformancemanagementmethods and tools
Imp rove retentionperformancemanagementmethods and tools
Improve managerialmethods and tools
Improve methods andtools for managingdemand/supplyperformance
Improve methods andtools for managingpr icing performance
Improve marketingand advertisingperformancemanagementmethods and tools
Imp rove salesperformancemanagementmethods and tools
Improve service andsupport performancemanagementmethods and tools
Improve ordermanagementmethods and tools
Improve procurementperformancemanagementmethods and tools
Improve real estateperformancemanagementmethods and tools
Improve HRperformancemanagementmethods and tools
Improve/consolidateIT performancemanagementmethods and tools(utilization, performance,capacity planning, etc.)
Improve productdevelopmentperformancemanagementmethods and tools
Improveunderstanding ofbusiness unitperformance andmarket values
Consolidate devicemanagementinformation and tools
Improve alignment ofcapital budgets andprogram plans withbusiness priorities
Improve alignment ofbusiness unitstrategies withenterprise strategies
Improve alignment offinancial strategieswith corporatestrategies
Strengthenenterprise-widefinancial reportingstandards
Increase focus onbusiness insight andforward-lookinginformation
Improve integration ofshort- and long-termbusiness planning
Improve leadershipand managementskills of executives
Increase emphasis oncontinuous, proactivemanagement ofinvestment portfolios
Improve vendormanagement skills ofstaff
Improve involvementof operational staff inproject delivery
Improveaccountability/authority of programand project resources
Improve effectivenessof program/projectgovernance models
Increase focus on keyperformance metrics
Increase focus onbusiness continuityplanning
Increase focus onproject quality andrisk management
Increase focus onrealization of targetedbusiness benefits
Improve identificationand management ofprogram/project r isks
Continuously trackand manage therealization of projectbenefits
Structure programs/projects to deliverbenefits progressively
Improve access toand distribution ofperformanceinformation
Improveunderstanding ofpartner strengths,weaknesses andinterests
Improve ability tostructure andimplement durable,mutually beneficialpartnerships
Improve agility andflexibility of partnerorganizations andnetworks
Develop and utilizeunique productionresources(methods, equipment,facilities, etc.)
Rationalize/consolidate vendorportfolio
Improve coordinationof payments acrossbusiness units
Improve assessmentand benchmarking ofA/P performance
Refine days-outstanding strategy
Improve alignment ofA/P systems andprocesses with days-outstanding strategy
Refine credit/days-receivable strategy
Improve managementof credit risk acrossbusiness units
Improve managementof credit/loan portfolio
How Value is Created(Value Drivers)
What You Can Do(Improvement Levers: Business Processes,Assets and Organizational Capabilities)
Other Shared / Corporate Services(Real Estate, Procurement and Other)
Human Capital Strategy and Management(Recruitment, Development, Administration andPerformance Management)
IT Strategy and Management(Design, Development, Deployment, Operations andPerformance Management)
Business Strategy and Management(Business and Financial S trategy, Mergers and Acquisitions, TaxManagement , Risk Management, Compliance Management , ProgramManagement and Performance Management)
Customer Strategy, Relationships and Interactions(Marketing, Sales, Delivery/Provisioning, Billing and Service)
Product Strategy, Development and Production(Innovation and Design, Supply Chain Management, ProductionOperations and Logistics)
BUSINESS PROCESS GROUPINGS
All Process Groupings(Action may apply to all processes)
Change What You Do- What you provide- Whom you target and serve- How you compete- Where you deploy resources- Which operations you outsource
Do What You Do Better- Strengthen governance approaches- Align resources with strategies- Improve business processes- Hone strategic capabilities- Manage tax impacts and opportunities- Improve control / reduce risk- Collaborate more effectively- Satisfy customers, employees and
other stakeholders
Note: Many actions could logically be associated withother or multiple process groupings. For example,many customer and product actions are likely to haveheavy IT and HR components.
Acquire New Customers Retain and Grow CurrentCustomers
Leverage Income-Generating Assets Strengthen Pricing
ImproveCustomer Interaction
Efficiency
ImproveCorporate/Shared Services
Efficiency
ImproveDevelopment & Production
Efficiency
ImproveLogistics & Service
ProvisionEfficiency
ImprovePP&E
Efficiency
ImproveInventoryEfficiency
ImproveReceivables & Payables
Efficiency
ImproveManagement & Governance
EffectivenessImprove
Execution Capabilities
Marketing &Sales
AccountManagement
Cross-Sell/Up-Sell Retention
Demand &Supply
ManagementPrice
OptimizationMarketing &Advertising Sales
CustomerService &Support
OrderFulfillment &
BillingIT, Telecom &
Networking Real Estate HumanResources
Procurement(Excluding Production
Materials &Merchandise)
BusinessManagement
FinancialManagement Materials Production MerchandisingLogistics &
DistributionProduct
DevelopmentReal Estate &Infrastructure
Equipment &Systems
FinishedGoods
Work inProcess &
Raw Materials
Accounts,Notes &Interest
Receivable
Accounts,Notes &InterestPayable
BusinessPlanning
ProgramDelivery
BusinessPerformanceManagement
OperationalExcellence
Partnership &Collaboration
RelationshipStrength
Agility &Flexibility
Product &Service
InnovationServiceDelivery
Cash/AssetManagement
StrategicAssets
Volume Price RealizationSelling, General &
Administrative(SG&A)
Cost of Goods Sold(COGS)
Property, Plant &Equipment
(PP&E)Inventory Receivables
& Payables Company Strengths External Factors
Revenue Growth Operating Margin(after taxes)
Asset Efficiency Expectations
Shareholder Value
Improve customerincentives foraccelerated/on-timepayment
Improve cross-selling/up-sellingskills of staff
Imp rove customerservice and retentionskills of staff
Increase focus onproduct innovation
Imp rove managementof trade/indirect taxes(sales/use, VAT, GST, etc.)
Improve tax collectionand remittanceprocesses
Improve managementof international staffcosts(immigration, payrol l, staffsuppor t, international equity,etc.)
Utilize availablefederal, state andlocal employment/training incentives
Improve technologyand data riskmanagementprocesses
Improve compliancemanagementprocesses
Improve tax manage-ment processes(direct and indirect taxmanagement)
Optim ize tax benefitsassociated with self-constructed assets(plant, facilities, internally-used software, etc.)
Improve managementof transfer pricing
Improve managementof trade and indirecttaxes (sa les/use , VAT,GST, etc.)
Improve managementof transfer pricing
Improve incorporationof risk analysis inbusiness planning(internal and external risk)
Integrate tax oppor-tunities and issuesinto business planningprocesses
Improve identificationand mitigation ofoperational r isk(people, process, tech-nology, data, etc.)
Improve quality ofinformation providedto stakeholders(accuracy, timeliness,transparency &predictabi lity)
Develop and utilizeunique informationresources (customer,product, market, e tc.)
Improve managementof organizationalchange in support ofinitiatives
Improve operationalrisk managementprocesses
Improve considerationof tax implications inthe acquisition anddisposition of assets
Maximize tax benefitsassociated with majorbusiness decisions(M&A, consolidation, out-sourcing, site se lection, etc.)
Increase emphasis onpermanently loweringthe company'seffective tax rate
Improve accuracy andtimeliness of taxprovis ion and cashoutflow forecasts
Improve focus of taxfunction/departmenton proactive taxplanning
Integrate tax oppor-tunities and issuesinto business planningprocesses
Optim ize accountingmethods and selec-tion of accountingperiods
Migrate income tolow-tax jurisdictions
Utilize internationalfinancing opportuni-ties to minimize after-tax borrowing costs
Optim ize expense vs.capitalization of costs(M&A costs, R&D costs,etc.)
Improve iden tificationand application ofR&D tax incentives
Improve ability toutilize offshore cash/assets and movebetween geographies
Improve ability toutilize offshore cash/assets and movebetween geographies
Improve managementof transfer pricing
Improve ability toutilize offshore cash/assets and movebetween geographies
Ensure propervaluation of propertyfor tax purposes
Build tax opportunitiesinto real estatetransactions(income deferral, locationcredits and incentives ,leasing terms, etc.)
Improve tax benefitsof compensation andbenefit programs(deferred and equity-basedcomp; reti rement andhealthcare benefits, e tc.)
Manage payroll taximpacts of businessinitiatives(M&A, consolidation,restructuring, re location etc.)
Optimize utilization ofavailable sales/usetax exemptions
Improve managementof indirect taxes(sales/use, VAT, customsduties, etc.)
Ensure adequatedocumentation ofsignificant taxpositions(earn ings & profits, transferpricing, tax opin ions, etc.)
Accelerate or deferincome/expenses
Clarify governanceroles and responsi-bilities (delegation ofauthority, segregation ofduties, etc.)
Implement/enhanceanonymous employeereporting and feed-back mechanisms
Align compensationand incentive systemswith strategies, valuesand ethics
Improve under-standing of regulatoryrequirements
Strengthen corporategovernance structures(composition, selection,roles, etc.)
Strengthen training/education of boardand audit committees
Strengthen andcommunicate mission,vision, values andethics
Improve focus oninternal controls andregulatory compliance
Build values andethics into corporateculture
Increase emphasis onrisk identification andmanagement
Improve risk planning,mitigation and controlapproaches
Improve monitoringand management ofregulatory compliance
Improve company-wide monitoring andmanagement of risks
Improve identificationand assessment ofrisk (strategic, operational ,investment, financial, com-pliance, data/privacy, etc.)
Improve monitoringand management ofrisk and compliance(strategic, operational andfinancial risks; regulatoryand tax compliance)
D eloi tte Enterprise Value Map T M
(Practical paths to increase shareholder value)It’s easy to say shareholder value is important.Not so easy to make it influence the decisionsthat are made every day: where to spend timeand resources, how best to get things done, and,ultimately, how to win in the competitivemarketplace.This Map is designed to accelerate theconnection between actions you can take andshareholder value. It is not rocket science and itis not complete, but it can jump-start theprocess of focusing on the things that mattermost and then choosing practical ways to getthem done.
Here are two simple ways to use it: Start at the top. Working your way down,
at each step ask yourself, How will weimprove this? This will help ensure that yourtactics support your objectives.
Start at the bottom. Working your way up,at each step ask yourself, Why are we doingthis? This will help ensure that every tacticleads to shareholder value.
Improve breadth,depth, quality andtimeliness of manag-er ial information
Improve/implementinternal controlframeworks andpolicies
Strengthen andcommunicategovernance policiesand procedures
Align internal auditpractices withbusiness and riskobjectives
Improve communi-cation between theboard, management,shareholders and thepublic
Improve mechanismsfor collecting andimplementingemployee ideas
Build innovation andimprovement intorewards andincen tives
Improve mechanismsfor soliciting andaddressingstakeholder feedback
Develop/integrateglobal HR practices(in ternal/external, onshore/offshore, etc.)
Income Taxes
ImproveIncome Tax
Efficiency
Income TaxManagement Governance
Improve utilization oftelecom tax incentives(credi ts, exemptions, etc.)
Improve profitability ofR&D efforts throughutilization of tax andeconomic develop-ment incentives
Improve profitability ofR&D efforts throughutilization of tax andeconomic develop-ment incentives
Improve tracking andrecovery of indirecttaxes (sales/use, VAT,GST , etc.)
Ensure tax planningactivities and taxfilings comply withregulatory environ-ment
Increase account-ability of businessunit leaders for taximpact of decisions
Improve coordinationof operational, invest-ment, financial, M&A,and tax strategiesacross business units
Utilize tax-effectivecorporate structuresfor ownership/licens-ing of intangibleassets (patents, tradenames, IP, etc.)
Improve benchmark-ing of global effectivetax rate againstindustry peer group
Utilize tax opportuni-ties around risk man-agement activities(hedging transactions,commodities trading, etc.)
Defer and reducefederal, state andlocal quarterly esti-mated tax payments
Consider taxincentives in locationand selection offacilities
Increase focus onpost-merger synergyand cost reductionprograms
Improve breadth,depth, quality andtimeliness of businessplanning information
Utilize tax-effectivecorporate structuresfor ownership/licens-ing of intangibleassets (patents, tradenames, IP, etc.)
Develop and utilizeunique tax expertise
B C- CC
B D C C C- B
CMkt/BookTotal Shareholder
Return
16
What is the organization focused on?
Step 3 – Identify Projects
Measure & Grade Understand Develop
hypotheses ValidateIdentify Projects Stakeholders
• Can you help them to do the right things?• Can you help them to do enough of the right things?• Can you help them to do the right things right?
Optimize depreciationmethods/lives forproperty, plant andequipment
Optimize valuationand costing methodsfor inventories(LIFO, FIFO, uniformcapitaliza tion , shr inkage,obso lescence, e tc.)
Ensure full uti lizationof tax carryforwards(credits, net operatinglosses , cap ital losses, etc.)
Consider tax implica-tions in the location/selection of facilities(distribution centers, servicecenters, branches, etc.)
Improve salesforecasting andcampaign executionproces ses and tools
Improverelationship/acc ountdevelopmentproces ses
Improve skills ofsales staff
Provide staff withbetter customerinformation(demographics, inqu iryhistory, e tc.)
Improve staffincentives aroundsales efficiency
Improve processesfor generating,qualifying andassigning leads
Improvefield sales andtelesalesproces ses
Consolidate/realignsales territories
Improve terms withsales channels
Improve terms withservice prov iders(ne twork services, airlines,informat ion services, etc.)
Improve terms onleased sales assets(computers, vehicles, e tc. )
Target newgeographies
Target new segmentswithin currentgeographies
Expand sales andadvertising channels
Acquire new productand service offerings
Pursue joint-venture,par tnership and OEMarrangem ents
Increase focus onhigh-value/high-potential customers
Increase focus onmost profitableproducts and services
Increase focus onmost effective salesand advertisingchannels
Improve brandstrength and good wil l
Increase time spentselling
Improve quality andassignment of salesleads
Improve access toinformation andanalytical tools
Improve sales andmarketing skil ls ofstaff
Improve alignment ofstaff incentives withstrategic objectives
Improve effectiv enessof marketing,advertising and salesprocesses
Tailor marketing andsales approaches tocustomer s egments
Tailor products andservices to newcustomer s egments
Evolve product andservice features,functional ity and value
Improve tota lcustomer experience(purchasing , fu lfillment ,usage, support , service ,etc.)
Increase focus onhigh-value/high-potential customers
Improveresponsiveness tocustomer complaints/feedback
Improveunderstanding ofcustomer needs
Proactively managetransition points(life events, ends o fcon tracts and leases, etc.)
Tailor accountmanagementapproaches tocustomer segments
Maintain competitivefunctionality and value
Tailor cross-sell /up-sell offers to customerneeds
Implement pricing andaffin ity programsbased on v olume andbreadth
Offer value-addingproduct and servicebundles
Improv e effectivenessof cross-sell/up-sellprocesses
Implement proactiveand reactiv e cros s-sell and up-sel lcampaigns
Improv e staffincentives for cross-selling/up-sel ling
Improv e identificationof cross-sell/up-sellopportunities
Increase focus onhigh-value/high-potential customers
Increase focus onmost profitab leproducts and services
Increase focus onmost effective salesand advertisingchannels
Improve retention andwin-back processes
Build customersatisfaction andretention into staffincentives
Improveunderstanding ofchurn/defectiondr ivers
Improve identificationof churn/defec tioncandidates
Increase focus onhigh-value /high-potential customers
Improvecompetitiv enes s ofproduct and serviceofferings
Shor ten time-to-market
Improv e brandawareness / E lev atebrand image
Increase emphasison supply chainmanagement(production, dist ribution andsa les p ipe lines)
Obtain exclusiveagreem ents withpartners(licenses, d istributorships,etc.)
Improv e features andfunctional ity ofproducts and serv ices
Improv e qual ity andreliabili ty of productsand services
Improv e product andservice l ifecyclemanagement
Improv ecommunication andcoordination w ithdistribution centers
Improv ecommunication andcoordination w ithsales channels
Improve focus onhigher-valuesegments
Rationaliz e and/orrefoc us c hannel/media usage
Rationaliz e and/orrefoc us product andservice portfolios
Rationaliz e targetedcustomer segments
Improve c ampaigndesign andmanagementprocesses and tools
Improve s kills ofmark eting staff
Improve s taffincentives aroundmark eting efficienc y
Provide staff wi thbetter market andcustomer information
Improve definition ofproduct and servicespecification
Improve product andservice launchprocesses
Provide staff wi thbetter competitiveinformation
Improve tai loring ofmark eting andadvertisingapproaches tocustomer segments
Improve terms withadvertising c hannels
Improve terms withservice providers(researchers, informat ionserv ices, advertisingchannels, etc.)
Improve emphasis onproduct quality andease of service
Design products forease-of-use / se lf-service
Route low-valuetransactions to lower-cost sales channels
Improve routing ofservice requests toappropriate staff
Increase use of lower-cost service andinformation channels(con tact centers, automatedvo ice response, web, etc. )
Improve workforceplanning and dispatchprocesses and tools
Improve capacity/demand p lanningprocesses, s kills andtools
Improve service andsupport processes
Improve skil ls ofservice staff
Provide staff withbetter customerinformation(profiles, transactionhistories, etc.)
Improve incentivesaround serviceefficiency andeffectiveness
Improve terms withservice providers(ne twork servi ces,outsourced functions, e tc.)
Improve terms onleased service assets(computers, vehicles, e tc. )
Improve forecasting,planning andpr ioritization s kills andtools
Improve creditanalysisprocesses
Improve skills of ordermanagement andbi lling staff
Provide staff withbetter customer andorder information
Improve incentivesaround ordermanagementefficiency
Improve pick, packand ship proces ses
Improveprovisioning/installation processes
Improve invoicing/bi lling processes
Improve policies andprocesses aroundmerchandise returns
Improve terms withservice providers(de livery servi ces,ou tsourced funct ions, e tc.)
Improve terms onleased assets(computers, vehicles, etc.)
Consolidate and/orre-architec t datastores
Increase util ization ofIT, te lecom andnetwork resources(servers, routers, networkcapacity, etc.)
Improve design,development andtesting proces ses
Improve processes formanaging systemoperations, mainten-ance and changes
Improve end-usersupport andadministrationprocesses
Improve selection,acquisition andcontractingprocesses
Improve installation/deploymentprocesses
Improve technical andproject managementskills of staff
Improve dispatch,diagnostic, resolutionand replacementprocesses
Improve incentivesaround IT/networkefficiency
Improve terms withservice providers(cont ractors, networkservices, consu ltan ts, etc.)
Improve terms onpurchased and leasedassets (PCs, servers,network equipment, leasedlines, etc. )
Improve terms onpurc hased and leasedreal estate, furnitureand fixtures
Increase utilization ofreal estate
Improve capacity/demand planningproc esses and tools
Improve real estatedesign and develop-ment processes
Improve operationalproc esses(administrat ion , security ,energy, HVA C andmaintenance)
Improve real estateselection, acquisitionand contractingproc esses
Improve real estateim provement anddeploymentproc esses
Improve terms withservice providers(security, energy, etc.)
Improve terms onim provements(HVAC, cab ling, etc .)
Improve terms wi ththird-party productand service providers(payroll, benefits, training,etc)
Reduce salary andbenefits c osts /Improve value ofemployee benefits
Improve capacity/demand planningprocesses and tools
Implement/improvecompany-wideprocesses and toolsfor assessing staffperformance
Improverecrui tment andorientation proces ses
Improve skills of HRstaff
Provide staff withbetter HR informationand tools
Improvetrainingprocesses
Improve salary andbenefits administra-tion processes /Increase em ployeesel f-service
Improvepayro llprocesses
Improveperformanceassessmentprocesses
Rationalize/consol idate vendorportfolio
Increase focus onhigher-value vendorpartnerships
Improve collaborationwith v endors
Increase use of lower-cost channels(sel f-service , etc.)
Improve assignmentof procurementtransactions toappropriate staff
Improve demandplanning processesand tools
Improve productprocurementprocesses(equ ipment, supplies, etc.)
Improve serviceprocurementprocesses(trav el, contract labor, etc.)
Improve contractingand negotiation skillsof procurement staff
Provide staff withbetter product andservice information
Improve incentivesaround proc urementefficiency
Improve terms onequipment andsupplies
Improve terms withservice providers(equ ipment ma intenance,de livery, warehousing , etc.)
Improve terms withservice providers(in fo rmati on services,consultants, e tc. )
Improvestrategic planningprocesses
Improve skills ofbus inessmanagement staff
Provide staff withbetter managerialinformation and tools
Improve incentivesaround businessplanning efficiency
Improveprogram planningprocesses
Improve capita lbudgetingprocesses
Improveprogrammanagementprocesses
Improveaccounting andmeasurementprocesses
Improve terms wi thfinancial servicesproviders
Improvecash/treasurymanagementpractices
Improve skills offinancial managementstaff
Improve incentiv esaround financialmanagementefficiency
Improve debt andequity managementprocesses
Increase focus onmaterials-efficientproduc tionmechanisms
Rationalize and/orrefocus productportfolio
Increase emphasis ondesigning formaterials efficiency
Rationalize/consolidate vendorportfolio
Focus effor ts onhigher-value vendorrelationships
Improve terms onmaterials purchases
Rationalize orderquanti ties and timing
Improve materialsperformancemanagementmethods and tools
Improve demandforecastingprocesses , skills andtools
Improve ordering andreceipt processes(raw materials, in te rmedia temateria ls, finishedcomponents , etc. )
Improve materialsefficiency ofproduc tion processes
Improve contractingand negotiation skillsof purchasing staff
Provide staff withbetter productinformation and tools
Design products touse cost-effectivematerials
Improve terms withservice providers(delivery, warehousi ng, etc.)
Rationalize and/orrefocus productportfolio
Improve focus onhigher-value products
Rationalize productionquantities and timing
Increase use of lower-cost productionchannels
Improve terms withservic e providers(outsourced functions, etc.)
Improve termson equipmentpurchases
Improve productionperformancemanagementmethods and tools
Improve demandforecastingprocesses, skil ls andtools
Improve capacityp lanning processes,skil ls and tools
Improveproduction schedulingand stagingprocesses
Improve utilization ofproduction channels /Reduce downtime
Improve skil ls ofproduction staff
Provide staff withbetter productioninformation and tools
Improve incentivesaround productionefficiency
Improve coordinationwith businesspartners
Improvemanufacturing andquality controlprocesses
Rationalize and/orrefocus productpor tfolio
Rationalize/consolidate vendorpor tfolio
Improve focus onhigher-v alue vendorre lationships
Improve terms onmerchandisepurchases
Rationalize orderquantities and timing
Improvemerchandisingper formancemanagementmethods and tools
Improve demandforecas tingprocesses, ski lls andtools
Improve assignmentof transactions toappropriate staff
Improvemerchandiseorder ing and receiptprocesses
Improve ski lls ofmerchandising staff
Provide staff withbetter in formation andtools
Improve incentivesaround merchandisingefficiency
Improve coordinationwith vendors
Improve terms withservice providers(delivery, warehousing, etc. )
Rationalize and/orrefocus productportfol io
Increase emphasis ondesigning andpackagingfor distribution
Increase quality andconsistency ofmaterials
Rationalize productionquantities and timing
Rationalizemerchandise orderquantities and timing
Increase use of lower-cost logistics anddistribution channels
Improv e inventoryreceipt and storageprocesses
Improv e transpor t anddelivery processes/algorithms
Improv e sk ills ofinventory anddistribution staff
Provide staff withbetter information andtools
Improv e incentivesaround inventory/distribution efficiency
Improv e logisticsperformancemanagementmethods and tools
Improv e demandforecastingprocesses, skills andtools
Improv e terms wi thservice providers(t ransport, warehousing ,etc.)
Improve focus onhigher-value customersegments andproducts
Rationalize and/orrealign productdevelopm entefforts
Increase use of lower-cost productdevelopm entchannels
Improve productconception/ini tiationprocesses
Improve utilization ofproduct dev elopmentchannels
Improve skills ofproduct dev elopmentstaff
Improve definition ofproduct and servicespecifications
Improve incentivesaround productdevelopm entefficienc y
Improveprototyping, pilo tingand testing processes
Improvedesign anddevelopm entprocesses
Improve identificationand d iscontinuation ofunsuccessfu lefforts
Lic ense or acquireproducts andintellectual property
Develop businessmodels with low reales tate requirements
Reduc e number ofdata centers, branchoffices , dealerships,retai l outlets, e tc.
Outsource businessfunctions
Increase use ofleased real estate
Improve termson proper ty andfacilities
Reconfigure facilities /Increase utilization offacilities
Increase use offlexible facilities
Divest low-util izationreal estate
Rationalize and/orrefocus product andservice por tfolios
Outsource businessfunctions
Increaseuse of leasedproduction equipment
Improve terms on ITsystems
Increase use offlexible/expandableproduction equipment
Increase emphasis ondes ign formanufacturabili ty andservice
Divest low-utilizationequipment
Improveeffectiveness of plantmaintenance
Improve termson infrastructure
Divest low-util izationinfrastructure
Increaseus e of flexib le andex pandableinfrastructure
Increase use ofleased infrastructure
Rationalize and/orrefocus productpor tfolio
Rationalize and/orrefocus customersegments anddistribution channels
Develop low-Inventorybusiness models
Increase emphasison build-to-order
Improve terms onmerchandise
Improvecollaboration withvendors/partners
Improvedemand forecasting
Consolidateinventory
Improve logistics/distribution efficiency
Divest low-demand/obsolete inventory
Rationaliz e and/orrefocus productportfo lio
Shorten produc tioncycles
Rationaliz e rawmaterials
Inc rease use of just-in-time procurement
Improvedemand forecasting
Improve terms onmaterials
Divest obsoletematerials
Coordinatemanagement ofcredi t/receivablesacross business units
Increase focus oncustomer segmentswi th low credit/loanneeds
Tighten credit/loanterms
Improve assessmentand benchmarking ofcredi t/receivablesper formance
Improve managementof delinquentaccounts
Coordinatemanagement ofpayables acros sbusiness uni ts
Leverage credit ratingto lengthen paymentcycles and reduceinterest rates
Leverage breadth ofvendor relationshipsto lengthen paymentcycles
Improve managementof debt por tfolio
Improve identi ficationand prediction ofindustry and markettrends
Improve identi ficationof opportunities andthreats
Improve strategydevelopment capa-bilities at corporateand bus iness-unitlevels
Improve alignment ofbudgets and capitalprograms withstrategic pr iori ties
Improve executivedevelopment,recruiting andsuccession planning
Improve identi fication,assessment andexecution ofM&A/divestitureopportunities
Improvecommunication ofstrategic directionsand priorities
Improve structuringand launch ofcohesive programportfo lios
Improve coordinationand communic ationacross programs andprojects
Improve program/project managementmethods and tools
Improve al ignm ent ofprojects with programand businessobjectives
Improvemeasurement andreporting ofoperational andfinancial performance
Improve analysis ofmanagerialinformation
Improve focus onmost impor tantmanagerialinformation
Improvecommunicationaround improvementpriorities
Improve abili tyto launchimprovement efforts
Improve quality andconsistency ofperformanceassessment methods
Improve careeroptions and paths
Al ign managementand staff incentiveswith companyperformance
Improve monetaryand non-monetaryrecognition of staffcontr ibutions
Improve breadth,depth, quali ty andtimel iness of perform-ance information
Im prove effectivenessof organizationalstructures andgovernance models
Increase emphasis onquality managementand benchmarking
Im proveprocess innovationskil ls of staff
Im prove depthand breadth of s tafftechnical skil ls
Improve qualityand speed ofcommunication withpartners
Improve abili ty tointegrate mergedand acquiredorganizations
Improve abili ty toidentify and assesspartneringopportuni ties
Improvemanagement ofpartner re lationships
Improve integration ofbusiness processesacross partnernetworks
Improve valuedelivered tocustomers
Improve valuedelivered to par tners(vendors, channel partners,etc. )
Improve valuedelivered toemployees
Improve identificationof oppor tunities toincrease value tostakeholders
Improve understand-ing of stakeholderinterests (cus tomers,shareho lders, regula tors,employees, suppli ers,partners, alumni, etc. )
Improve conversion ofstrong relationshipsinto sources of com-peti tive advantage
Improvecommunication withstakeholder groups
Improve agility andflexibility oforganizationalstructures
Improve agility andflexibility ofgovernance models
Improve flexib ilityof businessproc esses
Improve versatil ity ofmanagers and staff
Improve flexib ilityand versatili ty of ITsystems andplatforms
Rationalizecustomer portfolio
Improveresponsiveness tocustomer requestsand inqui ries
Improve tracking ofcustomer interactions(purchases, supportrequests, etc. )
Improve identificationof valuable cus tomerre lationships
Refocus and/or refineretention priori ties andstrategies
Create barriers toswi tching
Solicit and respond tocustomer feedback
Implement affinityprograms
Increase emphasison di fferentiatedproducts and serv ices
Improv e demandforecasting
Improveunderstanding ofcustomer, productand channelprofi tabil ity
Consolidate oroutsource service andsupport operations
Differentiate servicetreatment ofcustom ers/segments
Provide staff withbetter product andservice information
Improve financia lrisk managementprocesses
Increase use of lower-cost del ivery/installation channels(self-service , partners, etc. )
Increase use of lower-cost bil ling channels(au tomated, self-service,etc.)
Differentiate treatmentof customers/segments
Improve emphasis ondes ign for packing/shipping efficiency
Consolidate oroutsource orderfulfillment functions(pi ck, pack and ship,install, p rovision, e tc.)
Consolidate oroutsource bill ingoperations
Consolidate oroutsource design,development anddeployment services
Consolidate oroutsource operationsand maintenanceservices
Consolidate oroutsource end-usersupport
Consolidate companyreal estate/faci lities
Consolidate oroutsource design anddevelopmentfunctions
Rationalize ITapplication portfolio
Consolidate oroutsourceim provement anddeployment
Consolidate oroutsource propertymanagementfunctions
Increase use of lower-cost real estate andfacilities / Relocatebusiness operations
Consolidate oroutsource benefitsadministrationfunctions
Consolidate oroutsource payrollfunctions
Consolidate oroutsource recruitmentfunctions
Refine vendorstrategies
Standardize productcatalogs(equ ipment, office s upplies,promotiona l materials, etc.)
Consolidate oroutsourceprocurement functions
Consolidate and/oralign businessplanning,management andreporting functions
Improve al ignment oforganization struc-tures and governancemodels with businessstrategies
Consolidate and/oralign financia lplanning,management andrepor ting functions
Consolidate and/oralign financia laccounting andanalysis functions
Improve incentiv esaround procurementefficiency
Increase emphasis ondesign for productionefficiency
Consolidate oroutsource productionfunctions
Refine/a lignlogistic s anddistribution strategies
Increase focus onhigher-value productsand par tners
Consolidate/outsource logisticsand distributionfunctions
Rationalize and/orrefocus product andservice portfolios
Consolidate oroutsource productdevelopm entfunctions
Increase emphasis onmodular , ex tensible,scalable designs
ConsolidateIT systems,production lines andservice mechanisms
Increase emphasis onhigh-turn products
Inc rease emphasis ondesigning formanufacturingefficiency
Improvecollaboration withvendors/partners
Inc rease emphasis ondesigning formaterials efficiency
Increase focus onvendors withfavorable paymentterms
Increase emphasison risk-informed,scenario-basedplanning
Increase emphasis onenterprise-wideprogram planning andcollaborative programdelivery
Increase emphasison continuous,proactive perform-ance m anagement
Improvedetermination of keyperformance metricsand targets
Establish a c ulturecentered onoperationalexcel lenc e
Increase focus onpartnership, mergerand acquisitionopportuni ties
Increase focus onstakeholderrelationships
Establish processimprovement andinnovation as keycompetencies
Establishmanagement of keystakeholderrelationships asorganizational priority
Increase focus onbusiness agility andflexibility
Establish agil ity andflexibility as keycompetencies
Increase integration ofbusiness proces sesacross organizationalboundaries
Improvepartnership andcollaboration ski lls ofstaff
Improve utilization ofsales staff
Improve utilization ofservice staff
Provide staff withbetter product, s erviceand competi tiveinformation
Implement integratedapplications acrossorganizationalboundaries
Consolidate IT,telecom and networkequipment andfacili ties
Utilize moreefficient productionequipment
Improve quality andconsistency ofmanufacturingmaterials
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Improve value /Decrease prices
Im prove assessmentand benchmarking ofbusiness proces sper formanc e
Im prove sharing ofknowledge acrossorganizationalboundaries
Improve sharing ofknowledge acrossorganizationalboundaries
Im prove businesscontinuity p lanningand disaster recoverycapabilities
Improve abili ty todevelop and spin-offnew businesses
Increase focus on riskmanagement andregulatory compliance
Improv e focus onpr ice-insensitivecustomer s egments
Increase emphasis ondifferentiated pricingacross customersegments
Improveunderstanding ofcustomer pricesensitivity
Align advertising wi thpr icing strategies
Improve tailoring ofofferings to customerneeds
Increase use ofdifferential pr icingmechanisms (based oncustomer value, risk, etc.)
Increase emphasison preventiveequipmentmaintenance
Defer/change timingof capital investments
Increase utilization ofproduction equipment
Increase focus onmanagerial, forward-looking information
Improveunderstanding ofproduct/service valueto customers
Increase focus onpr icing effectiveness/pr ice optimization
Increase focus onR&D, productinnov ation, andproduct leadership
Broaden product andservice offerings
Improv e product/service R&Dand deploymentcapabilities
Adapt currentproducts and servicesfor new segments/channels
Improv e product- andservice-innovationski lls of staff
Increas e emphasis onservice prevention /Reduce need forservice
Increas e emphasis ondesigning for serviceefficiency and self-service
Route low-valuetransac tions to lower-cost sales channels
Improve routing ofservice requests toappropriate servicechannels
Increas e use ofcheaper servicechannels
Improve serviceper formancemanagementmethods and tools
Improve workforceplanning, dispatchand assignmentprocessesand tools
Improve capacity/demand planningprocesses, ski lls andtools
Improve service andsupport processes
Improve ski lls ofservice staff
Provide staff withbetter customerinformation(prof iles, transactionhisto ries , etc. )
Improve staffincentives aroundservice efficiency
Improve terms withservice providers(outsourced services,ne twork servi ces,info rmation services, etc. )
Improve terms onleased service assets(computers, vehicles, etc.)
Consolidate oroutsource serviceoperations
Differentiate treatmentof customers/segments
Provide staff withbetter product, serviceand contractinformation
Rationalize and/orrefocus servicesoffered
Improve utilization ofservice staff
Improve focus onhigher-v alue customerre lationships
Convert free servicesto fee-based services
Align product andservice prices wi thvalue to customers
Establish product,service and processinnovation as keycompetencies
Improve productinnovation processes
Improve product,service and processinnovation skills ofstaff
Improve assignmentof accountability andauthority
Improve effectivenessof organizationalstructures
Dynamical ly cancel orredirect ineffective/obsolete programsand projects
Improve tracking andcommunication ofprogram/projectprogress
Improve as signmentof resources toprojects
Improve program/project managementskills of staff
Improve managem entof vendors/serviceproviders
Establish program /project delivery as akey competency
Improve alignment ofcustomer, product,advertising, sales,service, support, andfu lfillment strategies
Develop, spin-off andsell new businesses
Improve investmentreturns on cas h/treasury funds
License or sellintellectual capital toother enterprises
Improv e brandstrength and good will
Improve brandstrength and good will
Sell appreciatedassets
Increas e emphasis ongenerating revenuefrom company assets
Increas e focus ondeveloping andprotecting in tellectualcapital
Increase focus oncredi tworthy custom ersegments
Improve collectionsprocesses
Improve andstandardize creditassess mentprocesses
Di fferentiate credittreatment ofcustomers/segments
Improv eunderstanding ofcustomer needs
Increase focus onexpansion ofcustomerrelationships
Improve product andservice wi thdrawaland retirementprocesses
Acquire competitors
Improveestablishment of andadherence to service-level targets
Increase use ofdistance/on- linelearning
Establish customercommunities
Improv e cros s-selland up-sellapproaches/models
Apply brand to newand unbrandedproducts
Develop and leveragestrong/unique partnerrelationships
Develop and leveragestrong brand
Develop strongcustomerrelationships andcommuni ties
Develop and utilizeunique physic alresources(facilities, land, etc.)
Develop and utilizeunique humanresources(thought leaders, managers,subj ect matter experts, etc. )
Develop and leverageintellectual capita l(copyrights, patents,trademarks, e tc.)
Increase focus onstrategic assets
Improve assetdevelopment skills ofmanagement andstaff
Improve incentivesaround assetdevelopment
Establishdevelopment ofstrategic assets as akey competency
Increase emphasis onleveraging strategicassets
Shorten productioncycles
Improve developmentand analysis ofbusiness c ases
Im prove security ofapplications, systemsand data
Improve costaccounting andallocation of shared/overhead costs
Im prove recruitingeffectiveness
Improve relationshipmanagementstrategies for keystakeholder groups
Improve valuedelivered toshareholders
Rationalize and/orrefocus product andservice portfol ios
Rationalize and/orrefocus product andservice por tfolios
Im prove physicalsecuri ty of people
Improvecommunication andknowledge transferac ross organizationalboundaries
Consolidate oroutsource learningand developmentfunctions
Increase emphasison people/talentdevelopment
Improve talentmanagement modelsand programs
Improve identificationof stakeholder groupsand establishment ofpriorities
Improve valuedelivered to otherstakeholders(pub lic, a lumni, analysts,etc. )
Shor ten order-to-del ivery cycle time /Improve product andservice availability
Increase emphasison design forconfigurability/customization
Improv e platform andpor tfol io strategies forproducts and services
Increase emphasis ontime- to-market andtime- to-production-volume
Increase number andquali ty of product andservice launches
Increase utilization ofmodular , reusabledesigns
Improv e collaborationwith design,development andproduction partners
Improv e reuse ofproduct and servic ecomponents
Improv e managementof product lifecycles(launch th rough retirement)
Increase emphasis onaccount/re lationshipdev elopment
Improve accountmanagement skills ofstaff
Improv e incentives forproduct developmentand innovation
Improve incentives foraccount/re lationshipdev elopment
Improve accountmanagementstrategies
Shor ten order-to-delivery cycle tim e /Improv e product andservice availability
Improv e totalcustomer experience(purchasing , fulfillment,usage, support, service ,etc.)
Improve execution ofmarket- and supply-dr iven promotions
Improve structuringand pricing ofpromotions
Improve coordinationwith suppliers andsales channels
Improv e use ofsupply- and capacity-dr iven promotions
Increase use ofpromotions
Rationalize and/orrefocus product andservice por tfolios
Improve focus onsegments with loweraverage cost-to-serve
Improve collaborationwi th partners andcustomers
Increase use ofvendor-managed/vendor-warehous edinventory
Improve due-datereliability
Manage procurementon a national/globalbasis
Utilize national/globalpurchasing power
Increase focus oncomponent reuse
Reduce procurementcyc le times
Improve collaborationwith vendors
Improv e design/structure ofdistribution networks
Align production andmerchandise orderingschedules withdistribution schedules
Improv e retrievalprocesses
Manage purchasingon a national/globalbasis
Refine and/or alignmerchandisingstrategies(cen tral vs. loca lmerchandising , etc.)
Improve use ofnational/globalpurchasing power
Increase use ofvendor-managed/vendor-warehousedinventory
Increase use ofvendor-managed/vendor-warehousedinventory
Increas e use ofvendor-managed/vendor-warehousedinventory
Improve product andservice introduction/launch processes
Rationalizeproduction facilities
Rationalize productionquantities and timing
Rationalizemerchandise orderquantities and timing
Increase use ofvendor-managed/vendor-warehousedinventory
Rationaliz e productionquantities and timing
Inc rease emphasis onuse of commoncomponents
Inc rease utilizationof standardizedcomponents
Manage materialssourcing on anational/global basis
Inc rease use ofvendor-managed/vendor-warehousedinventory
Increase emphasis oncustomer retention
Proactiv ely managetransi tion points(life events, ends ofcont racts and leases, etc.)
Offer value-addingproduct and servicebundles
Improve focus onemployee retention
Improve employeeretention programs
Utilize more efficientIT systems
Utilize moreflexible/expandable ITsystems
Improve maintenanceof IT systems
Increase utilization ofIT systems
Divest low-utilizationIT systems
Improve terms onproduction equipment
Improve focus ofcompany resourceson high-priorityinitia tives
Increase emphasis oncross-business-unitand cross-companycollaboration
Increase proactivepursuit ofpartnerships, mergersand acquisitions
Increase emphasis oncustomer satisfaction
Improve qualityassurance programs
Sell or lease excesscapacity to otherenterprises(product ion capacity, servic ecapacity, etc.)
Coordinate pr icing ofcomplementaryproducts and serv ices(razors v. blades / product v.shipping charges, etc.)
Improve price/marginknowledge of staff
Build productmargins/profitabilityinto sales incentives
Rationalize portfolio offinancial servicesproviders
Improve audi t andcompliancemanagementprocesses
Improve businesscase developmentand analysisprocesses
Improve breadth,depth and quality offinancial information(ass et, budget, price/cost,treasury , debtor/cred itor,performance, tax, risk , etc.)
Improve budgetingand forecastingcapabili ties
Improve financia lrepor ting efficiency
Improve assetmanagementprocesses(fixed and variable asse ts)
Improve integration ofIT s ystems acrosspartner networks
Increase emphasis onoperational in tegrationwith partners
Remove barr iers toswitching
Improve contractmanagem entprocesses(negotiation, execution andcompliance)
Refine vendor/suppl ier strategies
Consolidate oroutsourcemerchandisingfunctions
Establishcross-companycollaboration as a keycompetency
Im prove performanceand reliability of ITsystems/platforms(app licat ions, equipment,ne tworks, etc.)
Im prove breadth,depth, quality andtimeliness of businessinformation
Im prove access toand distribution ofbusiness information
Develop and utilizeunique IT resources(applications, ne tworks, etc.)
Improveunderstanding ofcurrent customersatisfaction
Improv e visibi lity ofcustomerrelationships andinteractions across a llchannels
Improve adherence tocontracts andagreements
Inc rease focus onhigher-value productsand services
Improve focus onhigher-valueadvertising c hannels/media
Focus sales efforts onhigher-marginproducts and services
Increase use of lower-cost sales channels(telesales, out le ts, self-service , etc. )
Improve focus onhigher-valuecustomers/segments
Rationalize and/orrefocus product andservice portfolios
Bypass currentchannels / Selldirectly to customers
Rationalize targetedmarkets and customersegments
Improve analyticalprocesses and tools
Improve c hannelmanagementprocesses and tools
Outsource propertytax administrationac tivi ties(compliance, assessment,negotiations, e tc .)
Improve businessper formance reportingprocesses
Improve alignment ofHR and technologystrategies withbusiness s trategies
Im prove manage-ment of regulatorycompl iance
Develop and leveragepoli tical relationshipsand alliances
Develop and cultivategood will
Improve anticipationand understanding ofcurrent and potentialregulations/legislation
Improve effectivenessof legislative/lobbyingefforts
Acquire com panies intargeted geographies
Acquire com panieswith relationships intargeted customersegments
Improve methods andtools for managingsales and marketingperformance
Acquire companiesaligned with productstrategies
Improv e methods andtools for managinginnov ationper formance
Increas e focus ondivestiture andreinvestment
Divest non-performingand non-strategicbusiness units
Align M&A strategieswi th businessobjectives
Improve/standardizeM&A processes
Improveunderstanding ofinternal value andmarket v alue ofbusiness units
Increase considera-tion of M &A anddives titure options
Improve accountmanagementmethods and tools
Improv e salesperformancemanagementmethods and tools
Improve retentionperformancemanagementmethods and tools
Improve managerialmethods and tools
Improv e methods andtools for managingdemand/supplyperformance
Improve methods andtools for managingpr icing performance
Improve marketingand advertisingperformancemanagementmethods and tools
Improve salesperformancemanagementmethods and tools
Improve service andsupport performancemanagem entmethods and tools
Improve ordermanagementmethods and tools
Improve procurementperformancemanagem entmethods and tools
Improve real estateperformancemanagementmethods and tools
Improve HRperformancemanagementmethods and tools
Improve/consolidateIT performanc emanagementmethods and tools(u tilization, performance,capacity plann ing, e tc.)
Improve productdevelopm entper formancemanagementmethods and tools
Improveunderstanding ofbusiness unitperformance andmarket values
Consolidate devicemanagementinformation and tools
Improve al ignment ofcapital budgets andprogram plans withbus iness priori ties
Improve al ignment ofbus iness uni tstrategies wi thenterprise strategies
Improve alignment offinancial strategieswith corporatestrategies
Strengthenenterprise-widefinancial reportingstandards
Increase focus onbusiness insight andforward-lookinginformation
Improve integration ofshort- and long-termbusiness p lanning
Improve leadershipand managementskills of executives
Increase emphasis oncontinuous, proactivemanagement ofinvestment portfo lios
Improve vendormanagement skills ofstaff
Improve involvementof operational staff inproject delivery
Improveaccountability/authority of programand project resources
Improve effectivenessof program/pro jectgovernance models
Increase focus on keyperformance metrics
Increase focus onbusiness continuityplanning
Increase focus onproject quality andrisk management
Increase focus onrealization of targetedbusines s benefits
Improve identificationand management ofprogram/project r is ks
Continuously trackand manage therealization of projectbenefits
Structure program s/projects to deliverbenefits progressively
Improve access toand distribution ofperformanceinformation
Improveunderstanding ofpartner strengths,weaknesses andinterests
Improve abili ty tostructure andimplem ent durable,mutually beneficialpartnerships
Improve agility andflexibility of partnerorganizations andnetworks
Develop and utilizeunique productionresources(methods, equipment,facilit ies, etc.)
Rational ize/consolidate v endorportfol io
Improve coordinationof payments acrossbusiness uni ts
Improve assess mentand benchmarking ofA/P performance
Refine days-outstanding strategy
Improve alignment ofA/P systems andprocesses with days-outstanding strategy
Refine credit/days-receivable strategy
Improve managementof credit risk acrossbus iness uni ts
Improve managementof credit/loan portfolio
How Value is Created(Value Drivers)
What You Can Do(Improvement Levers: Business Processes,Assets and Organizational Capabilities)
Other Shared / Corporate Services(Real Es tate, Procurement and Other)
Human Capital Strategy and Management(Recrui tment, Dev elopment, Administration andPerformance Management)
IT Strategy and Management(Design, Development, Deployment, Operations andPerformance Management)
Business Strategy and Management(Business and Financial Strategy, Mergers and Acquisitions,TaxManagement, Risk Management, Compliance Management, ProgramManagement and Performance Management)
Customer Strategy, Relationships and Interactions(Marketing, Sales , Delivery/Provisioning, Bil ling and Service)
Product Strategy, Development and Production(Innovation and Design, Supply Chain Management, ProductionOperations and Logistics)
BUSINESS PROCESS GROUPINGS
All Process Groupings(Action may apply to all processes)
Change What You Do- What you provide- Whom you target and serve- How you compete- Where you deploy resources- Which operations you outsource
Do What You Do Better- Strengthen governance approaches- Align resources with strategies- Improve business processes- Hone strategic capabilities- Manage tax impacts and opportunities- Improve control / reduce risk- Collaborate more effectively- Satisfy customers, employees and
other stakeholders
Note: Many actions could logically be associated withother or multiple process groupings. For example,many customer and product actions are likely to haveheavy IT and HR components.
Acquire New Customers Retain and Grow CurrentCustomers
Leverage Income-Generating Assets Strengthen Pricing
ImproveCustomer Interaction
Efficiency
ImproveCorporate/Shared Services
Efficiency
ImproveDevelopment & Production
Efficiency
ImproveLogistics & Service
ProvisionEfficiency
ImprovePP&E
Efficiency
ImproveInventoryEfficiency
ImproveReceivables & Payables
Efficiency
ImproveManagement & Governance
EffectivenessImprove
Execution Capabilities
Marketing &Sales
AccountManagement
Cross-Sell/Up-Sell Retention
Demand &Supply
ManagementPrice
OptimizationMarketing &Advertising Sales
CustomerService &Support
OrderFulfillment &
BillingIT, Telecom &
Networking Real Estate HumanResources
Procurement(Excluding Production
Materials &Merchandise)
BusinessManagement
FinancialManagement Materials Production MerchandisingLogistics &
DistributionProduct
DevelopmentReal Estate &Infrastructure
Equipment &Systems
FinishedGoods
Work inProcess &
Raw Materials
Accounts,Notes &Interest
Receivable
Accounts,Notes &InterestPayable
BusinessPlanning
ProgramDelivery
BusinessPerformanceManagement
OperationalExcellence
Partnership &Collaboration
RelationshipStrength
Agility &Flexibility
Product &Service
InnovationServiceDelivery
Cash/AssetManagement
StrategicAssets
Volume Price RealizationSelling, General &
Administrative(SG&A)
Cost of Goods Sold(COGS)
Property, Plant &Equipment
(PP&E)Inventory Receivables
& Payables Company Strengths External Factors
Revenue Growth Operating Margin(after taxes)
Asset Efficiency Expectations
Shareholder Value
Improve customerinc entives foraccelerated/on-timepay ment
Improve cross-sel ling/up-sellingskills of staff
Improve customerservice and retentionskills of s taff
Increase focus onproduct innovation
Improve managementof trade/indirect taxes(sales/use, VAT, GST, etc.)
Improve tax collectionand remittanceprocesses
Improve managementof international staffcosts(immigra tion , payroll, staf fsupport, international equity,etc.)
Utilize availablefederal, state andlocal employment/training incentives
Improve technologyand data riskmanagementprocesses
Improve compliancemanagementprocesses
Improve tax manage-ment processes(direct and indirect taxmanagement)
Optimize tax benefitsassociated with self-constructed assets(plant, facilities, in ternally-used software, etc.)
Improve managementof transfer pricing
Improve managementof trade and indirecttaxes (sa les/use , VAT,GST, etc.)
Improve managementof transfer pr icing
Improve incorporationof risk analysis inbusiness p lanning(in te rnal and external risk )
In tegrate tax oppor-tunities and issuesinto business planningprocesses
Im prove identi ficationand mi tigation ofoperational r isk(people, p rocess, tech-no logy, data, etc.)
Improve quality ofinformation providedto stakeholders(accuracy, timeliness,t ransparency &pred ictabilit y)
Develop and utilizeunique in formationresources (cus tomer,product, market , e tc.)
Improve managem entof organizationalchange in support ofinitiatives
Improve operationalrisk managementprocesses
Improve considerationof tax implications inthe acquisition anddisposition of assets
Maximize tax benefitsassociated with majorbusiness decisions(M&A, consolidati on , out-sourcing , site se lection, etc.)
Increase emphasis onpermanently loweringthe company'seffective tax rate
Improve acc uracy andtimel ines s of taxprovision and cashoutflow forecasts
Improve focus of taxfunction/departmenton proactive taxplanning
Integrate tax oppor-tunities and issuesinto business p lanningprocesses
Optimize accountingmethods and selec-tion of accountingperiods
Migrate income tolow-tax jurisdictions
Uti lize internationalfinancing opportuni-ties to minimiz e after-tax borrowing costs
Optimize expense vs.capitaliz ation of costs(M&A costs, R&D costs,etc.)
Improve identificationand application ofR&D tax incentives
Improve ability toutilize offshore cash/assets and movebetween geographies
Improve abil ity toutilize offshore cash/assets and movebetween geographies
Improve managementof transfer pricing
Improve abil ity toutilize offshore cash/assets and movebetween geographies
Ensure propervaluation of propertyfor tax purposes
Build tax opportunitiesinto real estatetransactions(income deferral, locat ioncredits and incentives,leasing te rms, etc.)
Improve tax benefi tsof compensation andbenefit programs(deferred and equ ity-basedcomp; re tirement andhealthcare benefits, etc.)
Manage payroll taximpacts of businessinitiatives(M& A, conso lida tion,restructu ring , relocation etc.)
Optimize utilization ofav ailable sales/usetax exemptions
Improve managementof indirect taxes(sal es/use , VAT, customsduti es, e tc.)
Ensure adequatedocumentation ofsignificant taxpositions(earni ngs & pro fits, t ransferpricing , tax opinions, etc.)
Accelerate or deferincome/expenses
Clarify governanceroles and responsi-bilities (delegation o fau thority, segregation o fdu ties, etc.)
Implement/enhanceanonymous employeereporting and feed-back mechanisms
Al ign c ompensationand incentive systemswith strategies, valuesand eth ics
Improve under-standing of regulatoryrequirements
Strengthen corporategovernance structures(composition, select ion,rol es, e tc.)
Strengthen training/education of boardand audit committees
Strengthen andcommunicate mission,vision, v alues andethics
Improve focus oninternal controls andregulatory compliance
Build v alues andethics in to corporateculture
Increase emphasis onrisk identi fication andmanagement
Improve risk planning,mitigation and controlapproaches
Improve moni toringand managem ent ofregulatory compliance
Improve company-wide monitoring andmanagement of r isks
Improve identificationand as sessment ofrisk (strategic, operational,investment, financia l, com-pliance , data/p rivac y, etc.)
Improve moni toringand management ofrisk and compliance(strategic, operationa l andfinancial risks; regulatoryand tax compliance)
Deloitte Enterprise Value MapT M
(Practical paths to increase shareholder value)It’s easy to say shareholder value is important.Not so easy to make it influence the decisionsthat are made every day: where to spend timeand resources, how best to get things done, and,ultimately, how to win in the competitivemarketplace.This Map is designed to accelerate theconnection between actions you can take andshareholder value. It is not rocket science and itis not complete, but it can jump-start theprocess of focusing on the things that mattermost and then choosing practical ways to getthem done.
Here are two simple ways to use it: Start at the top. Working your way down,
at each step ask yourself, How will weimprove this? This will help ensure that yourtactics support your objectives.
Start at the bottom. Working your way up,at each step ask yourself, Why are we doingthis? This will help ensure that every tacticleads to shareholder value.
Improve breadth,depth, quali ty andtimel iness of manag-er ial information
Improve/implementinternal controlframeworks andpolicies
Strengthen andcommunicategovernance policiesand procedures
Al ign internal audi tpractices withbusiness and riskobjectives
Improve communi-cation between theboard, management,shareholders and thepublic
Im prove mechanismsfor collecting andimplementingemployee ideas
Bui ld innovation andimprovement intorewards andincentives
Improve mechanismsfor soliciting andaddressingstakeholder feedback
Develop/integrateglobal HR practices(internal/external, onshore/offshore, etc.)
Income Taxes
ImproveIncome Tax
Efficiency
Income TaxManagement Governance
Improve utilization oftelecom tax incentives(credits, exemptions, etc.)
Improve profitability ofR&D efforts throughutilization of tax andeconomic develop-ment incentives
Improv e profitabili ty ofR&D efforts throughutilization of tax andeconomic develop-ment incentives
Improve tracking andrecovery of indi recttaxes (sales/use, V AT,GST, etc.)
Ensure tax planningactivities and taxfilings comply wi thregulatory environ-ment
Increase account-abili ty of businessunit leaders for taximpact of decisions
Improve coordinationof operational, invest-ment, financial, M&A,and tax strategiesacross business units
Uti lize tax-effectiv ecorporate struc turesfor ownership/licens-ing of intangibleassets (patents, tradenames, IP, etc.)
Improve benchmark-ing of g lobal effectivetax rate againstindustry peer group
Uti lize tax opportuni -ties around risk man-agement activities(hedging t ransactions,commodities trading, e tc.)
Defer and reducefederal, state andlocal quarterly esti-mated tax payments
Consider taxincentives in locationand selection offacilities
Increase focus onpost-merger synergyand cost reductionprograms
Improve breadth,depth, quality andtimeliness of businessplanning information
Utilize tax-effectivecorporate structuresfor ow nership/licens-ing of intangibleassets (patents, t radenames, IP, etc.)
Develop and utilizeunique tax expertise
B C- CC
B D C C C- B
CMkt/BookTotal Shareholder
Return
17
Identify Projects (cont)
= Program/project A= Program/project B= Program/project C= Program/project D
Program or Project
B = X-Year Financial Performance Relative to Peer Group (A = Leading, B = Above Average, C = Average, D = Below Avg.
= Improving / Deteriorating Lately
Relative Financial Performance (X-Year)
Strategic Priority
Key Business Issue
Optim ize depreciationmethods/lives forproperty, plant andequipment
Optim ize valuationand costing methodsfor inventories(LIFO, FIFO, uniformcapitalization, shrinkage,obsolescence, etc.)
Ensure full utilizationof tax carryforwards(credits, net operatinglosses, capital losses, etc.)
Consider tax implica-tions in the location/selection of facilities(distribution centers, servicecenters, branches, etc.)
Imp rove salesforecasting andcampaign executionprocesses and tools
Imp roverelationship/accountdevelopmentprocesses
Imp rove sk ills ofsales staff
Provide staff withbetter customerinformation(demographics, inquiryhistory, etc.)
Imp rove staffincentives aroundsales efficiency
Imp rove processesfor generating,qualify ing andassigning leads
Imp rovefield sales andtelesalesprocesses
Consolidate/rea lignsales territories
Imp rove terms withsales channels
Imp rove terms withservice providers(network services, a ir lines,information serv ices, etc.)
Imp rove terms onleased sales assets(computers, vehicles, etc.)
Target newgeographies
Target new segmentswithin currentgeographies
Expand sales andadvertising channels
Acquire new productand service offerings
Pursue joint-venture,partnership and OEMarrangements
Increase focus onhigh-value/high-potential customers
Increase focus onmost profitableproducts and services
Increase focus onmost effective salesand advertisingchannels
Improve brandstrength and good will
Increase time spentselling
Improve quality andassignment of salesleads
Improve access toinformation andanalytical tools
Improve sales andmarketing skills ofstaff
Improve alignment ofstaff incentives withstrategic objectives
Improve effectivenessof marketing,advertising and salesprocesses
Tailor marketing andsales approaches tocustomer segments
Tailor products andservices to newcustomer segments
Evolve product andservice features,functionality and value
Improve totalcustomer experience(purchasing, fu lfillment,usage, support, service,etc.)
Increase focus onhigh-value/high-potential customers
Improveresponsiveness tocustomer complaints/feedback
Improveunderstanding ofcustomer needs
Proactively managetransition points(li fe events, ends ofcontracts and leases, etc.)
Tailor accountmanagementapproaches tocustomer segments
Maintain competitivefunctionality and value
Tailor cross-sell/up-sell offers to customerneeds
Implement pricing andaffinity programsbased on volume andbreadth
Offer value-addingproduct and servicebundles
Improve effectivenessof cross-sell/up-sellprocesses
Implement proactiveand reactive cross-sell and up-sellcampaigns
Improve staffincentives for cross-selling/up-selling
Improve identificationof cross-sell/up-sellopportunities
Increase focus onhigh-value/high-potential customers
Increase focus onmost profitableproducts and serv ices
Increase focus onmost effective salesand advertisingchannels
Imp rove retention andwin-back processes
Build customersatisfaction andretention into staffincentives
Imp roveunderstanding ofchurn/defectiondrivers
Imp rove iden tificationof churn/defectioncandidates
Increase focus onhigh-value /high-potential customers
Imp rovecompetitiveness ofproduct and serviceoffe rings
Shorten time-to-market
Improve brandawareness / Elevatebrand image
Increase emphasison supply chainmanagement(production, d istribution andsales p ipelines)
Obtain exclusiveagreements withpartners(licenses, distributorships,etc.)
Improve features andfunctionality ofproducts and services
Improve quality andreliability of productsand services
Improve product andservice lifecyc lemanagement
Improvecommunication andcoordination withdistribution centers
Improvecommunication andcoordination withsales channels
Improve focus onhigher-valuesegments
Rationalize and/orrefocus channel/media usage
Rationalize and/orrefocus product andservice portfolios
Rationalize targetedcustomer segments
Improve campaigndesign andmanagementprocesses and tools
Improve skills ofmarketing staff
Improve staffincentives aroundmarketing efficiency
Provide staff withbetter market andcustomer information
Improve definition ofproduct and servicespecification
Improve product andservice launchprocesses
Provide staff withbetter competitiveinformation
Improve tailoring ofmarketing andadvertis ingapp roaches tocustomer segments
Improve terms withadvertis ing channels
Improve terms withservice providers(researchers, informationserv ices, advertisingchannels, etc.)
Improve emphasis onproduct quality andease of service
Design products fo rease-of-use / self-service
Route low-valuetransactions to lower-cost sales channels
Improve routing ofservice requests toappropriate staff
Increase use of lower-cost serv ice andinformation channels(contact centers, automatedvoice response, web, etc.)
Improve workforceplanning and dispa tchprocesses and tools
Improve capacity/demand planningprocesses, skills andtools
Improve service andsupport processes
Improve skills ofservice staff
Provide staff withbetter customerinformation(profiles, transactionhistories, etc.)
Improve incentivesaround serviceefficiency andeffectiveness
Improve terms withservice prov iders(network services,outsourced functions, etc.)
Improve terms onleased service assets(computers, vehicles, etc.)
Improve forecasting,planning andprioritization skills andtools
Improve creditanalys isprocesses
Improve skills of ordermanagement andbilling staff
Provide staff withbetter customer andorder information
Improve incentivesaround ordermanagementeffic iency
Improve pick, packand ship processes
Improveprovisioning/installation processes
Improve invoic ing/billing processes
Improve policies andprocesses aroundmerchandise returns
Improve terms withservice providers(delivery services,outsourced functions, etc.)
Improve terms onleased assets(computers, vehicles, etc.)
Consolidate and/orre-architect da tastores
Increase utilization ofIT, telecom andnetwork resources(servers , routers, networkcapacity, etc.)
Improve design,development andtesting processes
Improve processes formanaging systemoperations, mainten-ance and changes
Improve end-usersupport andadministrationprocesses
Improve selection,acquisition andcontractingprocesses
Improve installation/deploymentprocesses
Improve technical andproject managementskills of staff
Improve dispatch,diagnostic, resolutionand replacementprocesses
Improve incentivesaround IT/networkefficiency
Improve terms withservice providers(contrac tors, networkservices, cons ultants, etc.)
Improve terms onpurchased and leasedassets (PCs, servers,network equipment, leasedlines, etc.)
Improve terms onpurchased and leasedreal estate, furnitureand fixtures
Increase utilization ofreal estate
Improve capacity/demand planningprocesses and tools
Improve real estatedesign and develop-ment processes
Improve operationalprocesses(administration, security ,energy, HVAC andmaintenance)
Improve real estateselection, acquis itionand contractingprocesses
Improve real estateimprovement anddeploymentprocesses
Improve terms withservice prov iders(security, energy, etc.)
Improve terms onimprovements(HVAC, cabling, etc .)
Improve terms withthird-party productand service providers(payro ll, benefits, training,etc)
Reduce salary andbenefits costs /Improve value ofemployee benefits
Improve capacity/demand planningprocesses and tools
Implement/improvecompany-wideprocesses and toolsfor assessing staffperformance
Improverecruitment andorientation processes
Improve skills of HRstaff
Provide staff withbetter HR informationand tools
Improvetrainingprocesses
Improve salary andbenefits administra-tion processes /Increase employeeself-service
Improvepayrollprocesses
Improveperformanceassessmentprocesses
Rationalize/consolidate vendorportfolio
Increase focus onhigher-value vendorpartnerships
Improve collabo rationwith vendors
Increase use of lower-cost channels(self-service, etc.)
Improve assignmentof procurementtransactions toappropriate staff
Improve demandplanning processesand tools
Improve productprocurementprocesses(equipment, supplies, etc.)
Improve serv iceprocurementprocesses(trav el, contract labor, etc.)
Improve contractingand negotiation sk illsof procurement staff
Provide staff withbetter product andservice information
Improve incentivesaround procurementeffic iency
Improve terms onequipment andsupplies
Improve terms withservice providers(equipment maintenance,delivery, warehousing, etc.)
Improve terms withservice providers(information services,consul tants, etc.)
Improvestrategic planningprocesses
Improve skills ofbusinessmanagement staff
Provide staff withbetter managerialinformation and tools
Improve incentivesaround businessplanning efficiency
Improveprogram planningprocesses
Improve capitalbudgetingprocesses
Improveprogrammanagementprocesses
Improveaccounting andmeasurementprocesses
Improve terms withfinancial servicesproviders
Improvecash/treasurymanagementpractices
Improve skills offinancial managementstaff
Improve incentivesaround financialmanagementefficiency
Improve debt andequity managementprocesses
Increase focus onmaterials-efficientproductionmechanisms
Rationalize and/orrefocus productportfolio
Increase emphasis ondesigning formaterials efficiency
Rationalize/consolidate vendorportfolio
Focus efforts onhigher-value vendorrelationships
Improve terms onmaterials purchases
Rationalize orderquantities and timing
Improve materialsperformancemanagementmethods and tools
Improve demandforecastingprocesses, skills andtools
Improve ordering andreceipt processes(raw materials, in termediatemateria ls, fin ishedcomponents, etc.)
Improve materialsefficiency ofproduction processes
Improve contractingand negotiation skillsof purchasing staff
Provide staff withbetter productinformation and tools
Design products touse cost-effectivematerials
Improve terms withservice providers(delivery, warehousing, etc.)
Rationalize and/orrefocus productportfolio
Improve focus onhigher-value products
Rationalize productionquantities and timing
Increase use of lower-cost productionchannels
Improve terms withservice providers(outsourced functions, etc.)
Improve termson equipmentpurchases
Improve productionperformancemanagementmethods and tools
Improve demandforecastingprocesses, skills andtools
Improve capacityplanning processes,skills and tools
Improveproduction schedulingand stagingprocesses
Improve utilization ofproduction channels /Reduce downtime
Improve skills ofproduction staff
Provide staff withbetter productioninformation and tools
Improve incentivesaround productionefficiency
Improve coordinationwith businesspartners
Improvemanufacturing andquality controlprocesses
Rationalize and/orrefocus productportfolio
Rationalize/consolidate vendorportfolio
Improve focus onhigher-value vendorrelationships
Improve terms onmerchandisepurchases
Rationalize orderquantities and timing
Improvemerchandisingperformancemanagementmethods and tools
Improve demandforecastingprocesses, skills andtools
Improve assignmentof transactions toappropriate staff
Improvemerchandiseordering and receiptprocesses
Improve skills ofmerchandising staff
Provide staff withbetter information andtools
Improve incentivesaround merchandisingefficiency
Improve coordinationwith vendors
Improve terms withservice providers(delivery, warehousing, etc.)
Rationalize and/orrefocus productportfolio
Increase emphasis ondesigning andpackagingfor dis tribution
Increase quality andconsistency ofmaterials
Rationalize productionquantities and timing
Rationalizemerchandise orderquantities and timing
Increase use of lower-cost logistics anddistribution channels
Imp rove inventoryreceipt and storageprocesses
Imp rove transport anddelivery processes/algorithms
Imp rove sk ills ofinventory anddistribution staff
Provide staff withbetter information andtools
Imp rove incentivesaround inventory/distribution efficiency
Imp rove logis ticsperformancemanagementmethods and tools
Imp rove demandforecastingprocesses, skills andtools
Imp rove terms withservice providers(transport, warehousing,etc.)
Improve focus onhigher-value customersegments andproducts
Rationalize and/orrealign productdevelopmentefforts
Increase use of lower-cost productdevelopmentchannels
Improve productconception/initiationprocesses
Improve utilization ofproduct developmentchannels
Improve skills ofproduct developmentstaff
Improve definition ofproduct and servicespecifications
Improve incentivesaround productdevelopmentefficiency
Improveprototyping, pilotingand testing processes
Improvedesign anddevelopmentprocesses
Improve identificationand discontinuation ofunsuccessfulefforts
License or acquireproducts andintellectual property
Develop businessmodels with low realestate requirements
Reduce number ofdata centers, branchoffices, dealerships,retail outlets , etc.
Outsource businessfunctions
Increase use ofleased real estate
Improve termson property andfacilities
Reconfigure facilities /Increase utilization offacilities
Increase use offlexible facilities
Divest low -utilizationreal estate
Rationalize and/orrefocus product andservice portfolios
Outsource businessfunctions
Increaseuse of leasedproduction equipment
Improve terms on ITsystems
Increase use offlexible/expandableproduction equipment
Increase emphasis ondesign formanufacturability andservice
Divest low-utilizationequipment
Improveeffectiveness of plantmaintenance
Improve termson infrastructure
Divest low -utilizationinfrastructure
Increaseuse of flex ible andexpandableinfrastructure
Increase use ofleased infrastructure
Rationalize and/orrefocus productportfolio
Rationalize and/orrefocus customersegments anddistribution channels
Develop low-Inventorybusiness models
Increase emphasison build-to-order
Improve terms onmerchandise
Improvecollaboration withvendors/partners
Improvedemand forecasting
Consolidateinventory
Improve logistics/distribution efficiency
Divest low-demand/obsolete inventory
Rationalize and/orrefocus productportfolio
Shorten productioncyc les
Rationalize rawmaterials
Increase use of just-in-time procurement
Improvedemand forecasting
Improve terms onmaterials
Divest obsoletematerials
Coordinatemanagement ofcredit/receivablesacross business units
Increase focus oncustomer segmentswith low credit/loanneeds
Tighten credit/loanterms
Improve assessmentand benchmarking ofcredit/receivablesperformance
Improve managementof delinquentaccounts
Coordinatemanagement ofpayables acrossbusiness units
Leverage credit ratingto lengthen paymentcyc les and reduceinterest rates
Leverage breadth ofvendor relationshipsto lengthen paymentcyc les
Improve managementof debt portfolio
Improve identificationand prediction ofindustry and markettrends
Improve identificationof opportunities andthreats
Improve strategydevelopment capa-bilities at corporateand business-unitlevels
Improve alignment ofbudgets and capitalprograms withstrategic pr iorities
Improve executivedevelopment,recruiting andsuccession planning
Improve identification,assessment andexecution ofM&A/divestitureopportunities
Improvecommunication ofstrategic directionsand priorities
Improve structuringand launch ofcohesive programportfolios
Improve coordinationand communicationacross programs andprojects
Improve program/project managementmethods and tools
Improve alignment ofprojects with programand businessobjectives
Improvemeasurement andreporting ofoperational andfinancial performance
Improve analysis ofmanagerialinformation
Improve focus onmost importantmanagerialinformation
Improvecommunicationaround improvementpriorities
Improve abilityto launchimprovement efforts
Improve quality andconsistency ofperformanceassessment methods
Improve careeroptions and paths
Align managementand staff incentiveswith companyperformance
Improve monetaryand non-monetaryrecognition of staffcontr ibutions
Improve breadth,depth, quality andtimeliness of perform-ance information
Improve effectivenessof organizationalstructures andgovernance models
Increase emphasis onquality managementand benchmarking
Improveprocess innovationskills of staff
Improve depthand breadth of stafftechnical skills
Improve qualityand speed ofcommunication withpartners
Improve ability tointegrate mergedand acquiredorganizations
Improve ability toidentify and assesspartneringopportunities
Improvemanagement ofpartner relationships
Improve integration ofbusiness processesacross partnernetworks
Improve valuedelivered tocustomers
Improve valuedelivered to partners(vendors, channel partners,etc.)
Improve valuedelivered toemployees
Improve identificationof opportunities toincrease value tostakeholders
Improve understand-ing of stakeholderinterests (cus tomers,shareholders, regulators,employees, suppliers,partners, alumni , etc.)
Improve conversion ofstrong relationshipsinto sources of com-petitive advantage
Improvecommunication withstakeholder groups
Improve agility andflexibility oforganizationalstructures
Improve agility andflexibility ofgovernance models
Improve flexibilityof bus inessprocesses
Improve versatility ofmanagers and staff
Improve flexibilityand versatility of ITsystems andplatforms
Rationalizecustomer portfolio
Improveresponsiveness tocustomer requestsand inquiries
Improve tracking ofcustomer interactions(purchases, supportrequests, etc.)
Imp rove iden tificationof valuable customerrelationships
Refocus and/or refineretention priorities andstra tegies
Create barriers toswitching
Solicit and respond tocustomer feedback
Imp lement affinityprograms
Increase emphasison differentiatedproducts and services
Improve demandforecasting
Improveunderstanding ofcustomer, productand channelprofitability
Consolidate oroutsource service andsupport operations
Differentiate servicetreatment ofcustomers/segments
Provide staff withbetter product andservice information
Improve financialrisk managementprocesses
Increase use of lower-cost delivery/installation channels(sel f-service, par tners, etc.)
Increase use of lower-cost billing channels(automated, self-service,etc.)
Differentiate treatmentof customers/segments
Improve emphasis ondesign for packing/shipping efficiency
Consolidate oroutsource orderfulfillment functions(pick, pack and ship,insta ll, provision, etc.)
Consolidate oroutsource billingoperations
Consolidate oroutsource design,development anddeployment services
Consolidate oroutsource operationsand maintenanceservices
Consolidate oroutsource end-usersupport
Consolidate companyreal estate/facilities
Consolidate oroutsource design anddevelopmentfunctions
Rationalize ITapplication portfolio
Consolidate oroutsourceimprovement anddeployment
Consolidate oroutsource propertymanagementfunctions
Increase use of lower-cost real estate andfacilities / Relocatebusiness operations
Consolidate oroutsource benefitsadministrationfunctions
Consolidate oroutsource payrollfunctions
Consolidate oroutsource recruitmentfunctions
Refine vendorstrategies
Standardize productcatalogs(equipment, office supplies,promotional mater ials , etc.)
Consolidate oroutsourceprocurement functions
Consolidate and/oralign businessplanning,management andreporting functions
Improve alignment oforganization struc-tures and governancemodels with businessstrategies
Consolidate and/oralign financialplanning,management andreporting functions
Consolidate and/oralign financialaccounting andanalysis functions
Improve incentivesaround procurementefficiency
Increase emphasis ondesign for productionefficiency
Consolidate oroutsource productionfunctions
Refine/alignlogistics anddistribution strategies
Increase focus onhigher-value productsand partners
Consolidate/outsource logisticsand distributionfunctions
Rationalize and/orre focus product andservice portfolios
Consolidate oroutsource productdevelopmentfunctions
Increase emphasis onmodular , extensible,scalable designs
ConsolidateIT systems,production lines andservice mechanisms
Increase emphasis onhigh-turn products
Increase emphasis ondesigning formanufacturingefficiency
Improvecollaboration withvendors/partners
Increase emphasis ondesigning formaterials efficiency
Increase focus onvendors withfavorable paymentterms
Increase emphasison risk-informed,scenario-basedplanning
Increase emphasis onenterprise-wideprogram planning andcollaborative programdelivery
Increase emphasison continuous,proactive perform-ance management
Improvedetermination of keyperformance metricsand targets
Establish a culturecentered onoperationalexcellence
Increase focus onpartnership, mergerand acquisitionopportunities
Increase focus onstakeholderrelationships
Establish processimprovement andinnovation as keycompetencies
Establishmanagement of keystakeholderrelationships asorganizational p riority
Increase focus onbusiness agility andflexibility
Establish agility andflexibility as keycompetencies
Increase integration ofbusiness processesacross organizationalboundaries
Improvepartnership andcollaboration skills ofstaff
Imp rove utilization ofsales staff
Improve utilization ofservice staff
Provide staff withbetter product, serviceand competitiveinformation
Implemen t integratedapplications acrossorganizationalboundaries
Consolidate IT,telecom and networkequipment andfacilities
Utilize moreefficient productionequipment
Improve quality andconsistency ofmanufacturingmaterials
© 2004. All rights reserved. Confidential. 0104
Improve value /Decrease prices
Improve assessmentand benchmarking ofbusiness processperformance
Improve sharing ofknowledge acrossorganizationalboundaries
Improve sharing ofknowledge acrossorganizationalboundaries
Improve businesscontinuity planningand disaster recoverycapabilities
Improve ability todevelop and spin-offnew businesses
Increase focus on riskmanagement andregulatory compliance
Improve focus onpr ice-insensitivecustomer segments
Increase emphasis ondifferentiated pricingacross customersegments
Improveunderstanding ofcustomer pricesensitivity
Align advertising withpr ic ing strategies
Improve tailoring ofofferings to customerneeds
Increase use ofdifferential pricingmechanisms (based oncustomer value, risk, etc.)
Increase emphasison preventiveequipmentmaintenance
Defer/change timingof capital investments
Increase utilization ofproduction equipment
Increase focus onmanagerial, forward-looking information
Improveunderstanding ofproduct/service valueto customers
Increase focus onpr icing effectiveness/pr ice optimization
Increase focus onR&D, productinnovation, andproduct leadership
Broaden product andservice offerings
Improve product/service R&Dand dep loymentcapabilities
Adapt currentproducts and serv icesfor new segments/channels
Improve product- andservice-innovationskills of staff
Increase emphasis onservice prevention /Reduce need forservice
Increase emphasis ondesigning for serviceefficiency and self-service
Route low-valuetransactions to lower-cost sales channels
Improve routing ofservice requests toappropriate servicechannels
Increase use ofcheaper servicechannels
Improve serviceperformancemanagementmethods and tools
Improve workforceplanning, dispatchand assignmentprocessesand tools
Improve capacity/demand planningprocesses, skills andtools
Improve service andsupport processes
Improve skills ofservice staff
Provide staff withbetter customerinformation(profiles, transactionhistories , etc.)
Improve staffincen tives aroundservice efficiency
Improve terms withservice providers(outsourced services,network services,information services, etc.)
Improve terms onleased service assets(computers, vehicles, etc.)
Consolidate oroutsource serviceoperations
Differentiate treatmentof customers/segments
Provide staff withbetter product, serviceand contractinformation
Rationalize and/orrefocus servicesoffered
Improve utilization ofservice staff
Improve focus onhigher-value customerrelationships
Convert free servicesto fee-based services
Align product andservice pr ices withvalue to customers
Establish product,service and processinnovation as keycompetencies
Improve productinnovation processes
Improve product,service and processinnovation skills ofstaff
Improve assignmentof accountability andauthority
Improve effectivenessof organ izationalstructures
Dynamically cancel orredirect ineffective/obsolete programsand projects
Improve tracking andcommunication ofprogram/projectprogress
Improve assignmentof resources toprojects
Improve program/project managementskills of staff
Improve managementof vendors/serviceproviders
Establish program/project delivery as akey competency
Improve alignment ofcustomer, product,advertising, sales,service, support, andfulfillment strategies
Develop , spin-off andsell new businesses
Improve investmentreturns on cash/treasury funds
License or sellintellectual capital toother en terprises
Improve brandstrength and good will
Imp rove brandstrength and good will
Sell appreciatedassets
Increase emphasis ongenerating revenuefrom company assets
Increase focus ondeveloping andprotecting intellectualcapital
Increase focus oncreditworthy customersegments
Improve collectionsprocesses
Improve andstandardize creditassessmentprocesses
Differentiate credittreatment ofcustomers/segments
Improveunderstanding ofcustomer needs
Increase focus onexpansion ofcustomerrelationships
Improve product andservice withdrawaland retirementprocesses
Acquire competitors
Improveestablishment of andadherence to service-level targets
Increase use ofdistance/on-linelearning
Establish customercommunities
Improve cross-selland up-sellapproaches/models
Apply brand to newand unb randedproducts
Develop and leveragestrong/unique partnerrelationships
Develop and leveragestrong brand
Develop strongcustomerrelationships andcommunities
Develop and utilizeunique physicalresources(facil ities, land, etc.)
Develop and utilizeunique humanresources(thought leaders, managers,subject matter exper ts, etc.)
Develop and leverageintellectual capital(copyrights, patents,trademarks, etc.)
Increase focus onstrategic assets
Improve assetdevelopment skills ofmanagement andstaff
Improve incentivesaround assetdevelopment
Establishdevelopment ofstrategic assets as akey competency
Increase emphasis onleveraging strategicassets
Shorten productioncycles
Improve developmentand analysis ofbusiness cases
Improve security ofapplications, systemsand data
Improve costaccounting andallocation of shared/overhead costs
Improve recruitingeffectiveness
Improve relationshipmanagementstrategies for keystakeholder groups
Improve valuedelivered toshareholders
Rationalize and/orrefocus product andservice portfolios
Rationalize and/orrefocus product andservice portfolios
Improve physicalsecurity of people
Improvecommunication andknowledge transferacross organizationalboundaries
Consolidate oroutsource learningand developmentfunctions
Increase emphasison people/talentdevelopment
Improve talentmanagement modelsand programs
Improve identificationof stakeholder groupsand establishment ofpriorities
Improve valuedelivered to otherstakeholders(public, alumni, analysts,etc.)
Shorten order-to-delivery cycle time /Improve product andservice availability
Increase emphasison design forconfigurability/customization
Improve platform andportfolio s trategies forproducts and serv ices
Increase emphasis ontime-to-market andtime-to-production-volume
Increase number andquality of product andservice launches
Increase utilization ofmodular , reusabledesigns
Improve collaborationwith design,development andproduction partners
Improve reuse ofproduct and servicecomponents
Improve managementof product lifecyc les(launch through retirement)
Increase emphasis onaccount/relationshipdevelopment
Improve accountmanagement skills ofstaff
Improve incentives forproduct developmentand innovation
Improve incentives foraccount/relationshipdevelopment
Improve accountmanagementstrategies
Shorten order-to-delivery cycle time /Improve product andservice availability
Improve totalcustomer experience(purchasing, fulfillment,usage, support, service,etc.)
Improve execution ofmarket- and supply-dr iven promotions
Improve structuringand pricing ofpromotions
Improve coordinationwith suppliers andsales channels
Improve use ofsupply- and capacity-dr iven promotions
Increase use ofpromotions
Rationalize and/orrefocus product andservice portfolios
Improve focus onsegments with loweraverage cost-to-serve
Improve collaborationwith partners andcustomers
Increase use ofvendor-managed/vendor-warehousedinventory
Improve due-datereliability
Manage procurementon a national/globalbasis
Utilize national/globalpurchasing power
Increase focus oncomponent reuse
Reduce procuremen tcyc le times
Improve collaborationwith vendors
Imp rove design/structure ofdistribution networks
Align production andmerchandise orderingschedules withdistribution schedules
Imp rove retrievalprocesses
Manage purchasingon a national/globalbasis
Refine and/or alignmerchandisingstrategies(central vs. localmerchandising, etc.)
Improve use ofnational/globalpurchasing power
Increase use ofvendor-managed/vendor-warehousedinventory
Increase use ofvendor-managed/vendor-warehousedinventory
Increase use ofvendor-managed/vendor-warehousedinventory
Improve product andservice introduction/launch processes
Rationalizeproduction facilities
Rationalize productionquantities and timing
Rationalizemerchandise orderquantities and timing
Increase use ofvendor-managed/vendor-warehousedinventory
Rationalize productionquantities and timing
Increase emphasis onuse of commoncomponents
Increase utilizationof standardizedcomponents
Manage materialssourcing on anational/global basis
Increase use ofvendor-managed/vendor-warehousedinventory
Increase emphasis oncustomer retention
Proactively managetransition points(life events, ends ofcontracts and leases, etc.)
Offer value-addingproduct and servicebundles
Improve focus onemployee retention
Improve employeeretention programs
Utilize more efficientIT systems
Utilize moreflexible/expandable ITsystems
Improve maintenanceof IT systems
Increase utilization ofIT systems
Divest low-utilizationIT systems
Improve terms onproduction equipment
Improve focus ofcompany resourceson high-priorityinitiatives
Increase emphasis oncross-business-unitand cross-companycollaboration
Increase proactivepursuit ofpartnerships, mergersand acquisitions
Increase emphasis oncustomer satisfaction
Improve qualityassurance programs
Sell or lease excesscapacity to otherenterprises(production capacity, servicecapaci ty, etc.)
Coordinate pr icing ofcomplementaryproducts and services(razors v. blades / product v.sh ipping charges, etc.)
Improve price/marginknowledge of staff
Build productmargins/profitabilityinto sales incentives
Rationalize portfolio offinancial servicesproviders
Improve audit andcompliancemanagementprocesses
Improve businesscase developmentand analysisprocesses
Improve breadth,depth and quality offinancial information(ass et, budget, price/cost,treasury, debtor/creditor,performance, tax, risk, etc.)
Improve budgetingand forecastingcapabilities
Improve financialreporting efficiency
Improve assetmanagementprocesses(fixed and var iable assets)
Improve integration ofIT systems acrosspartner networks
Increase emphasis onoperational integrationwith partners
Remove barriers toswitching
Improve contractmanagementprocesses(negotiation, execution andcompliance)
Refine vendor/supplier strategies
Consolidate oroutsourcemerchandisingfunctions
Establishcross-companycollaboration as a keycompetency
Improve performanceand reliability of ITsystems/platforms(applications, equipment,networks, etc.)
Improve breadth,depth, quality andtimeliness of businessinformation
Improve access toand dis tribution ofbusiness information
Develop and utilizeunique IT resources(applications, networks, etc.)
Improveunderstanding ofcurrent customersatis faction
Improve visibility ofcustomerrelationships andinteractions across allchannels
Imp rove adherence tocontracts andagreements
Increase focus onhigher-value productsand services
Improve focus onhigher-valueadvertis ing channels/media
Focus sales efforts onhigher-marginproducts and services
Increase use of lower-cost sales channels(telesales, outle ts, sel f-service, etc.)
Imp rove focus onhigher-valuecustomers/segments
Rationalize and/orrefocus product andservice portfolios
Bypass currentchannels / Selldirectly to customers
Rationalize targetedmarkets and customersegments
Improve analyticalprocesses and tools
Improve channelmanagementprocesses and tools
Outsource propertytax administrationactivities(compliance, assessment,negotia tions, etc .)
Improve businessperformance reportingprocesses
Improve alignment ofHR and technologystrategies withbusiness strategies
Improve manage-ment of regulatorycompliance
Develop and leveragepolitical relationshipsand alliances
Develop and cultivategood w ill
Improve anticipationand understanding ofcurrent and potentialregulations/legislation
Improve effectivenessof legislative/lobbyingefforts
Acquire companies intargeted geographies
Acquire companieswith relationships intargeted customersegments
Improve methods andtools for managingsales and marketingperformance
Acquire companiesaligned with productstrategies
Improve methods andtools for managinginnovationperformance
Increase focus ondivestiture andreinvestment
Divest non-performingand non-strategicbusiness units
Align M&A strategieswith businessobjectives
Improve/standardizeM&A processes
Improveunderstanding ofinternal value andmarket value ofbusiness units
Increase considera-tion of M&A anddivestiture options
Improve accountmanagementmethods and tools
Improve salesperformancemanagementmethods and tools
Imp rove retentionperformancemanagementmethods and tools
Improve managerialmethods and tools
Improve methods andtools for managingdemand/supplyperformance
Improve methods andtools for managingpr icing performance
Improve marketingand advertisingperformancemanagementmethods and tools
Imp rove salesperformancemanagementmethods and tools
Improve service andsupport performancemanagementmethods and tools
Improve ordermanagementmethods and tools
Improve procurementperformancemanagementmethods and tools
Improve real estateperformancemanagementmethods and tools
Improve HRperformancemanagementmethods and tools
Improve/consolidateIT performancemanagementmethods and tools(utilization, performance,capacity planning, etc.)
Improve productdevelopmentperformancemanagementmethods and tools
Improveunderstanding ofbusiness unitperformance andmarket values
Consolidate devicemanagementinformation and tools
Improve alignment ofcapital budgets andprogram plans withbusiness priorities
Improve alignment ofbusiness unitstrategies withenterprise strategies
Improve alignment offinancial strategieswith corporatestrategies
Strengthenenterprise-widefinancial reportingstandards
Increase focus onbusiness insight andforward-lookinginformation
Improve integration ofshort- and long-termbusiness planning
Improve leadershipand managementskills of executives
Increase emphasis oncontinuous, proactivemanagement ofinvestment portfolios
Improve vendormanagement skills ofstaff
Improve involvementof operational staff inproject delivery
Improveaccountability/authority of programand project resources
Improve effectivenessof program/projectgovernance models
Increase focus on keyperformance metrics
Increase focus onbusiness continuityplanning
Increase focus onproject quality andrisk management
Increase focus onrealization of targetedbusiness benefits
Improve identificationand management ofprogram/project r isks
Continuously trackand manage therealization of projectbenefits
Structure programs/projects to deliverbenefits progressively
Improve access toand distribution ofperformanceinformation
Improveunderstanding ofpartner strengths,weaknesses andinterests
Improve ability tostructure andimplement durable,mutually beneficialpartnerships
Improve agility andflexibility of partnerorganizations andnetworks
Develop and utilizeunique productionresources(methods, equipment,facilities, etc.)
Rationalize/consolidate vendorportfolio
Improve coordinationof payments acrossbusiness units
Improve assessmentand benchmarking ofA/P performance
Refine days-outstanding strategy
Improve alignment ofA/P systems andprocesses with days-outstanding strategy
Refine credit/days-receivable strategy
Improve managementof credit risk acrossbusiness units
Improve managementof credit/loan portfolio
How Value is Created(Value Drivers)
What You Can Do(Improvement Levers: Business Processes,Assets and Organizational Capabilities)
Other Shared / Corporate Services(Real Estate, Procurement and Other)
Human Capital Strategy and Management(Recruitment, Development, Administration andPerformance Management)
IT Strategy and Management(Design, Development, Deployment, Operations andPerformance Management)
Business Strategy and Management(Business and Financial S trategy, Mergers and Acquisitions, TaxManagement , Risk Management, Compliance Management , ProgramManagement and Performance Management)
Customer Strategy, Relationships and Interactions(Marketing, Sales, Delivery/Provisioning, Billing and Service)
Product Strategy, Development and Production(Innovation and Design, Supply Chain Management, ProductionOperations and Logistics)
BUSINESS PROCESS GROUPINGS
All Process Groupings(Action may apply to all processes)
Change What You Do- What you provide- Whom you target and serve- How you compete- Where you deploy resources- Which operations you outsource
Do What You Do Better- Strengthen governance approaches- Align resources with strategies- Improve business processes- Hone strategic capabilities- Manage tax impacts and opportunities- Improve control / reduce risk- Collaborate more effectively- Satisfy customers, employees and
other stakeholders
Note: Many actions could logically be associated withother or multiple process groupings. For example,many customer and product actions are likely to haveheavy IT and HR components.
Acquire New Customers Retain and Grow CurrentCustomers
Leverage Income-Generating Assets Strengthen Pricing
ImproveCustomer Interaction
Efficiency
ImproveCorporate/Shared Services
Efficiency
ImproveDevelopment & Production
Efficiency
ImproveLogistics & Service
ProvisionEfficiency
ImprovePP&E
Efficiency
ImproveInventoryEfficiency
ImproveReceivables & Payables
Efficiency
ImproveManagement & Governance
EffectivenessImprove
Execution Capabilities
Marketing &Sales
AccountManagement
Cross-Sell/Up-Sell Retention
Demand &Supply
ManagementPrice
OptimizationMarketing &Advertising Sales
CustomerService &Support
OrderFulfillment &
BillingIT, Telecom &
Networking Real Estate HumanResources
Procurement(Excluding Production
Materials &Merchandise)
BusinessManagement
FinancialManagement Materials Production MerchandisingLogistics &
DistributionProduct
DevelopmentReal Estate &Infrastructure
Equipment &Systems
FinishedGoods
Work inProcess &
Raw Materials
Accounts,Notes &Interest
Receivable
Accounts,Notes &InterestPayable
BusinessPlanning
ProgramDelivery
BusinessPerformanceManagement
OperationalExcellence
Partnership &Collaboration
RelationshipStrength
Agility &Flexibility
Product &Service
InnovationServiceDelivery
Cash/AssetManagement
StrategicAssets
Volume Price RealizationSelling, General &
Administrative(SG&A)
Cost of Goods Sold(COGS)
Property, Plant &Equipment
(PP&E)Inventory Receivables
& Payables Company Strengths External Factors
Revenue Growth Operating Margin(after taxes)
Asset Efficiency Expectations
Shareholder Value
Improve customerincentives foraccelerated/on-timepayment
Improve cross-selling/up-sellingskills of staff
Imp rove customerservice and retentionskills of staff
Increase focus onproduct innovation
Imp rove managementof trade/indirect taxes(sales/use, VAT, GST, etc.)
Improve tax collectionand remittanceprocesses
Improve managementof international staffcosts(immigration, payrol l, staffsuppor t, international equity,etc.)
Utilize availablefederal, state andlocal employment/training incentives
Improve technologyand data riskmanagementprocesses
Improve compliancemanagementprocesses
Improve tax manage-ment processes(direct and indirect taxmanagement)
Optim ize tax benefitsassociated with self-constructed assets(plant, facilities, internally-used software, etc.)
Improve managementof transfer pricing
Improve managementof trade and indirecttaxes (sa les/use , VAT,GST, etc.)
Improve managementof transfer pricing
Improve incorporationof risk analysis inbusiness planning(internal and external risk)
Integrate tax oppor-tunities and issuesinto business planningprocesses
Improve identificationand mitigation ofoperational r isk(people, process, tech-nology, data, etc.)
Improve quality ofinformation providedto stakeholders(accuracy, timeliness,transparency &predictabi lity)
Develop and utilizeunique informationresources (customer,product, market, e tc.)
Improve managementof organizationalchange in support ofinitiatives
Improve operationalrisk managementprocesses
Improve considerationof tax implications inthe acquisition anddisposition of assets
Maximize tax benefitsassociated with majorbusiness decisions(M&A, consolidation, out-sourcing, site se lection, etc.)
Increase emphasis onpermanently loweringthe company'seffective tax rate
Improve accuracy andtimeliness of taxprovis ion and cashoutflow forecasts
Improve focus of taxfunction/departmenton proactive taxplanning
Integrate tax oppor-tunities and issuesinto business planningprocesses
Optim ize accountingmethods and selec-tion of accountingperiods
Migrate income tolow-tax jurisdictions
Utilize internationalfinancing opportuni-ties to minimize after-tax borrowing costs
Optim ize expense vs.capitalization of costs(M&A costs, R&D costs,etc.)
Improve iden tificationand application ofR&D tax incentives
Improve ability toutilize offshore cash/assets and movebetween geographies
Improve ability toutilize offshore cash/assets and movebetween geographies
Improve managementof transfer pricing
Improve ability toutilize offshore cash/assets and movebetween geographies
Ensure propervaluation of propertyfor tax purposes
Build tax opportunitiesinto real estatetransactions(income deferral, locationcredits and incentives ,leasing terms, etc.)
Improve tax benefitsof compensation andbenefit programs(deferred and equity-basedcomp; reti rement andhealthcare benefits, e tc.)
Manage payroll taximpacts of businessinitiatives(M&A, consolidation,restructuring, re location etc.)
Optimize utilization ofavailable sales/usetax exemptions
Improve managementof indirect taxes(sales/use, VAT, customsduties, etc.)
Ensure adequatedocumentation ofsignificant taxpositions(earn ings & profits, transferpricing, tax opin ions, etc.)
Accelerate or deferincome/expenses
Clarify governanceroles and responsi-bilities (delegation ofauthority, segregation ofduties, etc.)
Implement/enhanceanonymous employeereporting and feed-back mechanisms
Align compensationand incentive systemswith strategies, valuesand ethics
Improve under-standing of regulatoryrequirements
Strengthen corporategovernance structures(composition, selection,roles, etc.)
Strengthen training/education of boardand audit committees
Strengthen andcommunicate mission,vision, values andethics
Improve focus oninternal controls andregulatory compliance
Build values andethics into corporateculture
Increase emphasis onrisk identification andmanagement
Improve risk planning,mitigation and controlapproaches
Improve monitoringand management ofregulatory compliance
Improve company-wide monitoring andmanagement of risks
Improve identificationand assessment ofrisk (strategic, operational ,investment, financial, com-pliance, data/privacy, etc.)
Improve monitoringand management ofrisk and compliance(strategic, operational andfinancial risks; regulatoryand tax compliance)
D eloi tte Enterprise Value Map T M
(Practical paths to increase shareholder value)It’s easy to say shareholder value is important.Not so easy to make it influence the decisionsthat are made every day: where to spend timeand resources, how best to get things done, and,ultimately, how to win in the competitivemarketplace.This Map is designed to accelerate theconnection between actions you can take andshareholder value. It is not rocket science and itis not complete, but it can jump-start theprocess of focusing on the things that mattermost and then choosing practical ways to getthem done.
Here are two simple ways to use it: Start at the top. Working your way down,
at each step ask yourself, How will weimprove this? This will help ensure that yourtactics support your objectives.
Start at the bottom. Working your way up,at each step ask yourself, Why are we doingthis? This will help ensure that every tacticleads to shareholder value.
Improve breadth,depth, quality andtimeliness of manag-er ial information
Improve/implementinternal controlframeworks andpolicies
Strengthen andcommunicategovernance policiesand procedures
Align internal auditpractices withbusiness and riskobjectives
Improve communi-cation between theboard, management,shareholders and thepublic
Improve mechanismsfor collecting andimplementingemployee ideas
Build innovation andimprovement intorewards andincen tives
Improve mechanismsfor soliciting andaddressingstakeholder feedback
Develop/integrateglobal HR practices(in ternal/external, onshore/offshore, etc.)
Income Taxes
ImproveIncome Tax
Efficiency
Income TaxManagement Governance
Improve utilization oftelecom tax incentives(credi ts, exemptions, etc.)
Improve profitability ofR&D efforts throughutilization of tax andeconomic develop-ment incentives
Improve profitability ofR&D efforts throughutilization of tax andeconomic develop-ment incentives
Improve tracking andrecovery of indirecttaxes (sales/use, VAT,GST , etc.)
Ensure tax planningactivities and taxfilings comply withregulatory environ-ment
Increase account-ability of businessunit leaders for taximpact of decisions
Improve coordinationof operational, invest-ment, financial, M&A,and tax strategiesacross business units
Utilize tax-effectivecorporate structuresfor ownership/licens-ing of intangibleassets (patents, tradenames, IP, etc.)
Improve benchmark-ing of global effectivetax rate againstindustry peer group
Utilize tax opportuni-ties around risk man-agement activities(hedging transactions,commodities trading, etc.)
Defer and reducefederal, state andlocal quarterly esti-mated tax payments
Consider taxincentives in locationand selection offacilities
Increase focus onpost-merger synergyand cost reductionprograms
Improve breadth,depth, quality andtimeliness of businessplanning information
Utilize tax-effectivecorporate structuresfor ownership/licens-ing of intangibleassets (patents, tradenames, IP, etc.)
Develop and utilizeunique tax expertise
B C- CC
B D C C C- B
CMkt/BookTotal Shareholder
Return
18
Who should you talk to about it?
Why do they care?How will you deliver and initiate the dialogue?
How does your offer align with client’s key needs?Where does he start?How does your offer fit in the client’s enterprise?
What’s the management challenge?
Why is it important?
How Do YouApproach It?
What’s Yourinsight?
What’s theHypothesis?
Measure & Grade Understand Develop
hypotheses ValidateIdentify Projects
Step 4 – Develop Hypotheses• Identify key issues and "pain" points• Develop hypotheses on where you can add most value
Stakeholders
19
Step 5 - Stakeholders: Identify who you know –Political Balance Sheet
Name/ Title Pain Nature of
Relationship Power Preference Part Deloitte Owner
Chan, CEO x Business +5 +5 Advocate Decision maker
J. Chopra
Viroli, Finance
Business +2 -4 Challenging Gatekeeper A. Lim
Matsubara, IT
x Business -5 -5 Opposing Evaluator C. Wright
Ramirez, Marketing
x Business -1 +5 Advocate Influencer J. Levis
Black, Company Secretary
x Business +4 +4 Inclusive Potential Influencer
C. Wright
Anil, Operations
Business +4 +4 Inclusive Non-participant
L. Scott
Rivera, Controller
x Personal +5 -4 Challenging Decision maker
C. Gilchrist
Thompson, Sales
x Business +4 -2 Skeptical Decision maker
R. Lee
Measure & Grade Understand Develop
hypotheses ValidateIdentify Projects Stakeholders
©Copyright 2004 by the Complex Sale. Inc. All rights reserved.
20
Step 6 - Validate
Requirements
Needs Survey
Presentation
Close
Client
Emotional & Political
Logical & Rational
Measure & Grade Understand Develop
hypotheses ValidateIdentify Projects Stakeholders
©Copyright 2004 by the Complex Sale. Inc. All rights reserved.
21
3- The Value Initiative Tool Suite
Enterprise Value Map
A practical tool that links potential improvement initiatives and shareholder value. It is important because:
– It depicts your value orientation – that we understand the intended business impact of your efforts.
– It generates terrific conversations and is popular with clients. – It helps clients (and your teams) focus on the right things.
ValueLink An electronic rendition of the Enterprise Value Map™ that relates Improvement Actions to IndustryPrint™ business processes and illustrates the breadth and depth of the resources Our Company has to identify, evaluate, and deliver value-creating initiatives.
MapIt! Functionality within Portfolio Landscape that has been created as a standalone tool. It creates a project Portfolio Alignment Map using the Enterprise Value Map as an underlying framework.
PriorIt! Functionality within Portfolio Landscape that has been created as a standalone tool in Microsoft Excel. It provides a strategic value and risk-complexity matrix assessment to evaluate projects and help clients prioritize their portfolio.
Portfolio Landscape
A customizable tool that addresses current and future needs in initiative and project portfolio management. The tool allows teams to conduct a full portfolio analysis and the ongoing management process.
22
ValueLink quickly identifies Our Company’s Service Offerings that address client business issues on the Enterprise Value Map
ValueLink often provides hotlinks to various items in
your knowledge management repositories.
Our Company’s business solutions linked to various
aspects of the Enterprise Value Map are shown as buttons on this left hand panel
What is it?:• An electronic version of the map that allows
users to click through and browse to associated your company content and intellectual property through the lens of the Enterprise Value Map framework and drivers.
23
MapIt! helps determine the alignment of a project portfolio across value drivers and maps the portfolio against key business objectivesWhat is it?• Part of the Project Portfolio Management tool suite, MapIt! is an access database tool that provides quick and
easy access to the development of a Project Portfolio Alignment Map. • Users can:
- Input benefit and cost information and allocate it to the Enterprise Value Map Framework- Customize analysis further using Industry / Service line specific Value Maps as the underlying framework
24
PriorIT! helps to prioritize projects on the basis of the risk and value trade-offs within the portfolioWhat is it?• As part of the Project Portfolio Management
tool suite, PriorIT! is an excel-based tool that helps teams to develop a project prioritization model based on risk and value criteria
• The tool was extracted from Portfolio Landscape to be used as a “quick hit”, bringing a quick view of the projects value and risk
25
Portfolio Landscape Tool• Most robust tool
encompassing the full set of optimization and prioritization analyses
• Used in engagement setting only as it requires access to detailed project information such as business case data, strategic data, project management data and alignment data, etc.
The Project Portfolio Management tool suite assists in optimizing and managing project and program portfolios
MapIt! Tool• Extracts the functionality from Landscape that allocates project benefits
and costs across the Enterprise Value Map into a standalone tool in order to provide a quick hit analysis.
• Uses high level cost and benefit data
PriorIT! Tool• Extracts the
functionality from Landscape that creates a risk vs value prioritization model into a standalone tool in order to provide a quick hit analysis
• Uses high level project cost data
Set upPortfolio
DevelopPrioritization
Model CollectCollectProjectProjectCollect
ProjectInformation
Analyze Analyze PortfolioPortfolio
AnalyzePortfolio
PrioritizePrioritizePrioritizeProject &Programs
Communicate& Report
Deploy &ExecutePortfolio
MonitorPrograms& Projects
MonitorChanges
Completed per initiative sponso rs
Tea m Est ablishe d/ Well Underwa y
Target Id en tified
$x$x
$x
$x
$x
$x
Revise d Original
Target IdentifiedTeam Estab lis hed / We ll Underwa yCom pleted per Initiativ e Sponsors
Translates to a $x MM annual run rate
Benefit Tracking Report
Time
EB
ITD
A Im
pact
($M
)
FY03 Opportunity
FY05 Target - ΔEP=$200M ΔEBITDA=$330M
Portfolio LandscapeDesign Portfolio Portfolio
ManagementPortfolio Monitoring &
Project Execution
Risk/Value Matrix : All Proje cts
A1
A2
A3 A4
A5
A6
A7
A8
A9
A10
A11A12
A13
I1
I2
I3
I4 I5
I6
I7
I8
O1
O2O3
O4
O5
O6 O7
O8
O9
T1
T2T3
T4T5
T6
T7
0
1
2
3
4
5
6
0123456
Risk
Valu
e
Innovat ion Maintenance Produc tivity Gro wth
Project Portfolio Management Tool Suite At A Glance
Risk/Value Matrix : All Projects
A1
A2
A3 A4
A5
A6
A7
A8
A9
A10
A11A12
A13
I1
I2
I3
I4I5
I6
I7
I8
O1
O2O3
O4
O5
O6 O7
O8
O9
T1
T2T3
T4T5
T6
T7
0
1
2
3
4
5
6
0123456
RiskVa
lue
Innovation Maintenance Productivity Growth
26
Wrap-up1. What is The Value Initiative?2. The Value Initiative Components3. The Value Initiative Tool Suite4. Q&A
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