How to plan and build up strategies that create real future value.
What is strategic value creation and how is strategic value determined?
We keep hearing corporations proclaim a strategy to create future value. Whenever I investigate what value is being created, I find vague answers about providing a good customer value proposition or generating stakeholder value by increasing profits. Strategic value management seems to be formulas that can calculate a number that is labeled as value. Value is something that appears at the end of the strategy, rather than value that is defined in detail from the start and added to throughout the execution of the strategy.
How does your enterprise create and determine day to day value?
Does your enterprise have a strategy to create future value? Has anyone clearly defined the value they are creating with their strategy? How is the value determined or calculated? What is the starting point that is built on to create value? What is the basis in what we are doing day-to-day that adds to the value? How do we express value in the strategy?
If we use the word “value” we must know what it means and be able to determine actual value
The problem is that value is a word anyone can define. We need a precise definition of value that we can use to manage every day. If our strategy is to create value, value cannot just be a slogan or a customer perception. Value needs to be the basis for building the strategy and the basis for managing and reporting progress to execute the strategy.
Corporate governance needs a way to plan and manage strategic value
Our corporate governance needs to ensure that we have a viable strategy to create substantiated future value starting from detailed current value, and that we manage the corporation day to day to create actual value that builds up to the future value for all stakeholders.
Result-performance Management (R-pM) provides the means to plan and manage strategic and day-to-day value
The answer to creating strategic value is Result-performance Management (R-pM) to organize and manage the business of the corporation. Management strategy is a class of management capital to get the enterprise ready to produce planned strategic results and to maintain the strategy. Management strategy capital management provides solutions to enable the corporation to create strategic result value. Strategic value is represented in the strategic business structure that shows results to produce and performance solutions needed at the strategic horizon. To learn more about R-pM visit result-performance-management.com.
21st Century Management eliminates 20th century problems
Result-performance Management (R-pM) eliminates strategic value creation problems and other costly 20th century problems. Slash overheads and costs, simplify business management, and boost competitive advantage through R-pM, the conventional method for 21st Century Management.
Download your 21st Century Management Manual today
Your 21st Century Management Manual, The R-pM Toolkit, is available today and is under continual development to expand and refine 21st Century Management. The R-pM Toolkit is offered at a nominal price to encourage wide use of R-pM. Get your R-pM Toolkit, and future updates, at result-performance-management.com.
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October 31st, 2006 at 16:45
[…] In an article on 1 March 2006, we discussed “Evaluating strategies that create future value“, to investigate what value is being created, I found value that appears at the end of the strategy, rather than value that is defined in detail from the start and added to throughout the execution of the strategy. […]