Enterprise Value Map

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Deloitte Enterprise Value MapTM
(Practical paths to increase shareholder value)
It’s easy to say shareholder value is important.
Not so easy to make it influence the decisions
that are made every day: where to spend time
and resources, how best to get things done, and,
ultimately, how to win in the competitive
marketplace.
This Map is designed to accelerate the
connection between actions you can take and
shareholder value. It is not rocket science and it
is not complete, but it can jump-start the
process of focusing on the things that matter
most and then choosing practical ways to get
them done.

Here are two simple ways to use it:
Start at the top. Working your way down,
at each step ask yourself, How will we
improve this? This will help ensure that your
tactics support your objectives.
Start at the bottom. Working your way up,
at each step ask yourself, Why are we doing
this? This will help ensure that every tactic
leads to shareholder value.

Operating Margin

Revenue Growth

Asset Efficiency

(after taxes)

Expectations

How Value is Created
(Value Drivers)

Volume

Acquire New Customers

Selling, General &
Administrative
(SG&A)

Price Realization

Retain and Grow Current
Customers

Leverage IncomeGenerating Assets

Improve

Improve

Improve

Improve

Customer Interaction
Efficiency

Strengthen Pricing

Income Taxes

Cost of Goods Sold
(COGS)

Corporate/Shared Services

Development & Production

Efficiency

Efficiency

Inventory

Receivables
& Payables

Company Strengths

Improve

Improve

Improve

Inventory

Receivables & Payables

Efficiency

Efficiency

Efficiency

External Factors

Improve

PP&E

Efficiency

Efficiency

Improve

Income Tax

Logistics & Service
Provision

What You Can Do

Property, Plant &
Equipment
(PP&E)

Management & Governance
Effectiveness

Improve

Execution Capabilities

(Improvement Levers: Business Processes,
Assets and Organizational Capabilities)
Marketing &
Sales

-

What you provide
Whom you target and serve
How you compete
Where you deploy resources
Which operations you outsource

Account
Management

Cross-Sell/
Up-Sell

Retention

Increase focus on
high-value/highpotential customers

Broaden product and
service offerings

Increase focus on
high-value/highpotential customers

Increase focus on
high-value/highpotential customers

Increase focus on
high-value /highpotential customers

Increase focus on
most profitable
products and services

Increase focus on
R&D, product
innovation, and
product leadership

Rationalize
customer portfolio

Increase focus on
most profitable
products and services

Increase emphasis on
customer retention

Increase focus on
most effective sales
and advertising
channels

Increase emphasis
on design for
configurability/
customization

Increase emphasis on
account/relationship
development

Increase focus on
most effective sales
and advertising
channels

Create barriers to
switching

Target new
geographies

Change What You Do

Product &
Service
Innovation

Improve platform and
portfolio strategies for
products and services

Improve account
management
strategies

Increase focus on
expansion of
customer
relationships

Refocus and/or refine
retention priorities and
strategies

Target new segments
within current
geographies

Increase emphasis on
time-to-market and
time-to-productionvolume

Expand sales and
advertising channels

Demand &
Supply
Management

Price
Optimization

Marketing &
Advertising

Increase emphasis on
generating revenue
from company assets

Acquire competitors

Rationalize and/or
refocus product and
service portfolios

Rationalize targeted
customer segments

Rationalize targeted
markets and customer
segments

Rationalize and/or
refocus product and
service portfolios...
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