Business Value Improvement Methodology
Engagements differ due to nature and scope of optimizations and consulting but in principle they all follow Business Value Improvement methodology. Actions progress in 3 steps:
Step 1: Snapshot of the situation
Purpose:
Status and trends identification in the company as a whole and/or its business segments; valuation with respect to business environment, competitive position, strategic and economic signatures and stakeholders’ expectations.
Expected outcome:
- Evaluation of adequacy, effectiveness and efficiency of company’s performance measured against set strategic, economic and other goals
- Evaluation of synchronization of strategy and daily practices
- Evaluation of competitiveness in terms of relative position to best practices
- Identification of burning issues and areas most urgently requesting optimizations; complete with assessment and quantification of expected optimization results
- Identification of further possibilities for profitability and FCF improvements
- Comprehensive assessment of company’s state of affairs, its value and necessary actions to ensure improvements
Step 2: Improvements design
Purpose:
Identification of factual pain points, evaluation of possibilities for their amelioration and estimation of corresponding economic effects through leverage exertion on most appropriate value drivers.
Expected outcome:
- Pinpointing of company’s pain points
- Identification of leverages that most suitably and positively affect identified pain points
- Detailed evaluation of expected positive effects of actions to be taken
- Identification of particular structures, processes, human resources and other business elements that need to be optimized; complete with identification of solutions
- Preparation of solutions and deployment plans
- Differential analysis of optimization’s final outcome
Step 3: Execution of business value improvement
Purpose:
Optimization of pain points with most appropriate means through precise acting on value drivers; value improvement of the company.
Expected outcome:
- Amelioration or complete elimination of pain points
- Optimization od structures, processes and other business elements; assurance of synchronized operation
- Optimization of functional units and the company as a whole
- Profitability boost and FCF enhancement
- Value improvement
- Comprehensive assessment of future growth and development potential
All engagements are characterized by structured approach and iterative nature. Solid economic improvement is always of paramount importance.
