ValueCorp
A Strategic Approach to Build Corporate Value
ValueCorp is an integrated approach seeking to increase corporate value by focusing on management activities to increase the organisation’s capabilities of generating cash flow in the short and long term, promoting organic growth and resolving reinvest or cash out trade-offs, while keeping operating risks manageable.
By decentralizing decision making at the operational level, promoting fact-based discussions, benchmarking-inspired innovations and team building around managers responsible for each of the company’s value driver, the organization is enabled to progressively take strategic steps in expanding the business in the most profitable way.
Decisions such as whether or not to keep a particular client, to sell in a market-segment, to discontinue a product, to launch a new service, to adjust commercial conditions or investing in new facilities, are made after completing a well-informed ‘planning-execution-evaluation-learning’ cycle.
Overall, comparing planned performance against real results at the end of each operational cycle improves the management planning capabilities making the company more predictable, less risky and more attractive to investors. Budget and project executions become as core as natural tasks for departments and individuals. These simplify and summarize its mandate and responsibilities, respectively: What they plan is visible for everyone as well as being their commitment vis-a-vis the organisation.
Assessing the company’s cash flow with a comprehensive view of all its components allows decision makers to weigh the impact of actions they are considering undertaking and collegially deciding on the best way to proceed. For instance, operational and financial managers can jointly evaluate how the effect on corporate taxes payable for of a particular initiative would reconcile with the company’s tax planning strategy.
ValueCorp is about Continual Improvement focused on value creation. The approach encourages horizontal communication and data sharing so facts and best business practices are spread across the organisation. Over time and after having exhaustively explored every available alternative to create value, corporate officers are enabled to decide conscientiously on the acquisition of a competitor to boost growth, or to spin-off a business unit which does not fit within the corporation.
This approach improves corporate governance focusing managers on value creation and strengthening implementation capabilities with long term vision, which means better business insights to detect opportunities and a better business foresight to visualize the future.
By decentralizing decision making at the operational level, promoting fact-based discussions, benchmarking-inspired innovations and team building around managers responsible for each of the company’s value driver, the organization is enabled to progressively take strategic steps in expanding the business in the most profitable way.
Decisions such as whether or not to keep a particular client, to sell in a market-segment, to discontinue a product, to launch a new service, to adjust commercial conditions or investing in new facilities, are made after completing a well-informed ‘planning-execution-evaluation-learning’ cycle.
Overall, comparing planned performance against real results at the end of each operational cycle improves the management planning capabilities making the company more predictable, less risky and more attractive to investors. Budget and project executions become as core as natural tasks for departments and individuals. These simplify and summarize its mandate and responsibilities, respectively: What they plan is visible for everyone as well as being their commitment vis-a-vis the organisation.
Assessing the company’s cash flow with a comprehensive view of all its components allows decision makers to weigh the impact of actions they are considering undertaking and collegially deciding on the best way to proceed. For instance, operational and financial managers can jointly evaluate how the effect on corporate taxes payable for of a particular initiative would reconcile with the company’s tax planning strategy.
ValueCorp is about Continual Improvement focused on value creation. The approach encourages horizontal communication and data sharing so facts and best business practices are spread across the organisation. Over time and after having exhaustively explored every available alternative to create value, corporate officers are enabled to decide conscientiously on the acquisition of a competitor to boost growth, or to spin-off a business unit which does not fit within the corporation.
This approach improves corporate governance focusing managers on value creation and strengthening implementation capabilities with long term vision, which means better business insights to detect opportunities and a better business foresight to visualize the future.
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