Want to accelerate your company’s business transformation success and your team’s perceived impact? Focus on value realization. Be a value center; not a cost center or overhead.

One of the biggest challenges IT, Finance, Change Management, Business Transformation, and PMO (Project Management Office) teams face is demonstrating how they deliver bottom line value for their company. Value gets “realized” in other business units.

Establishing your direct connection to value creation is critical for all departments, any given job role, and every single employee.

THE THREE (3) TYPES OF ENTERPRISE VALUE:

➡️ Type 1 Value: Revenue generation, revenue growth, new assets, financial statement impact

➡️ Type 2 Value: Cost savings, cost containment, productivity/efficiency gains

➡️ Type 3 Value: Intrinsic value (important but harder to quantify) — customer/employee loyalty, customer/employee engagement, customer service, business reputation, talent acquisition/retention, business culture, content creation, status or sentimental value

FIVE (5) VALUE REALIZATION TIPS:

1️⃣ Define a Sharp Enterprise-Wide Value Agenda — a “map” of your company’s value realization ambitions. Value realization has 4 stages: delivery, realization, validation, and optimization.

2️⃣ Dis-aggregate Your Value Agenda Across Business Units, Regions, Product, and Key Capabilities — link value realization change pathways directly to revenue, expenses, invested capital, and risk. While many companies have a value agenda, few can show precisely how every part of the organization achieves it.

3️⃣ Allocate Talent to High Value Realization Initiatives — according to McKinsey & Company, companies that re-allocate talent to high value initiatives are 2X more likely to outperform competitors and deliver shareholder returns.

4️⃣ Leverage Data-Rich Technology Platforms — embedded dashboards and KPI visualization tools produce a clear view of KPI performance and metric value comparison. Visualized data helps companies adopt an ecosystem view, roll up data, analyze it, and tell a story about ROI for real-time decision making.

5️⃣ Don’t Duplicate Efforts — discover which dashboards and KPI visualization tools already exist in your company and adapt them for broader business ecosystem use.

KEY TAKEAWAY:

Be a value center; not a cost center or overhead. Establish how value will be created/captured. Demonstrate value realization with quantifiable KPI metrics. Ensure that everyone in your company (from C-Suite to front line employee) understands value realization and how they directly contribute to daily value creation. You’ll become a “future-ready” company that can unlock and sustain value.

Ready to learn the Science of Change®?

• Learn more about Our Services.
• Register for a complimentary 30-minute consultation call.