Assessing Value Creation

Think "Value Creation" - not "Just Getting Started"

All companies pursuing Operational Excellence Transformation or Business Process Reengineering have one thing in common – a need to deliver breakthrough levels of value creation or productivity gains.  Your organization knows it needs transformative change, so let’s just get going, right? Wrong. Before embarking on a Business Process Innovation or Business Process Redesign project, we need a clear picture of the value creation opportunity. Of all the areas that are candidates for change, what are the best possible value and productivity levers to produce the biggest impact to the bottom-line?

Assess for Value Creation addresses the need to quickly and skillfully develop a compelling business case for change by quantifying the impact of the level of effort needed. With a strong business case for change, process re-engineering projects are much more likely to succeed. With the assessment results, here is how the Value Creation Assessment is used:

• Quantify the benefit to get consensus to move forward. (Many change initiatives compete with other initiatives for the same investment dollar).
• Identify the best approach for realizing the targeted benefits of streamlining or redesigning
• Guide the efforts of the business re-design phase: what you quantify in the value creation case will drive what the plan and implement phase delivers.
• Drive the momentum for change (managing to the targeted business value provides a framework for making day-to-day and strategic decisions).

Keep the initiatives afloat in times of change. Most business initiatives with no quantifiable value case are candidates for being shut down when leadership changes take place. (Typically, because no one knows why the project is happening, and no benefits are being tracked against the target, so why not?).