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Building a value creation plan

by Uma Rajagopal
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Ten questions to answer and seven steps to follow in creating the perfect vcp

Earlier, deeper, stronger. These were the three main takeaways following a major recent study into the way the very best performing businesses approach the issue of value-creation planning.  According to the KPMG study, value creation planning is starting sooner, going into greater depth and having a greater impact on decision-making. 

More than 80% of those polled by KPMG said they actively engage in value creation well before making the investment decision. At Champions, we know the importance of building a value creation plan at the earliest point and support our clients in creating the very best strategies. 

When it comes to creating a solid value creation there are ten key questions you need to ask:

  1. Does it include measurable and SMART value-drivers?
  2. Have you set objectives and initiatives to support your value-drivers?
  3. Are you creating realistic targets?
  4. Do you have clearly defined actions and processes you need to implement to achieve the targets?
  5. Could your objectives and actions be more closely aligned to those value-drivers?
  6. Have you remembered to create target dates – and will you stick to them?
  7. Will you share your value-creation plan and will you be willing to make modifications? If not, why?
  8. Have you opted to track and measure performance of the value-creation plan regularly? If not, should you?
  9. Will you be updating partners and colleagues on the progress and create performance reports?
  10. And can you build feedback into your value-creation plan to keep it current?

Once you’ve answered those questions there are seven elements that should also be front and centre of your mind:

  1. The first is brand identity. Does your brand clearly stand out? It should showcase exactly what your business is about and what it stands for, and this should come across clearly to both customers and investors.  A brand is much more than just a logo and colours, essentially being your whole business’ DNA, so carry out a thorough assessment of your brand and asks whether it accurately reflects your business.
  2. Next, look at digitisation. Has your business introduced technologies to improve operational efficiency,  which help streamline processes, increase efficiency and productivity and future-proof the business?  A company that doesn’t utilise new technology effectively misses out on new ways of communicating and operating that are inevitably going to be part of any business’ future.
  3. Alongside this, you need to develop strong systemisation.  This requires creating an organised operational model for your business, and one that has defined processes in place. This includes increasing the efficiency of internal systems, simplifying project management and standardising procedures. 
  4. Considering differentiation is an important next step. Two questions you need to ask over and over: Is your business unique? What sets it apart from the competition? Having a strategy in place that can effectively answer these questions creates a competitive advantage, ensuring your business is attractive to your target market.
  5. Think carefully about your ethos and vision, too. Having a defined ethos, which represents your values and beliefs as a business, helps further differentiate you from competitors, outlining shared values between yourself and your target audience – and potentially, investors.    Designing a clear vision for the future of your business shows investors that there’s a clear, desirable path for your business, with profitable opportunities just inches away. A vision statement – that is, a written statement outlining the purpose and mission of your business – should aim to send a clear message without being too vague or too specific, contributing to forging your business’ identity and showing there are clear goals your business is working towards.
  6. Your business should also seek to implement a strong talent acquisition and retention strategy. A loyal and passionate workforce is at the heart of every successful company, and a business that is attractive to jobseekers will naturally be attractive to investors, too. 
  7. Finally, make sure you pay attention to ESG (Environmental, Social and Governance), which is increasingly more important in today’s world. A strong ESG proposition generates significant additional value for any organisation, demonstrating that it has plans in place dedicated to showing support to important causes.

Potential partners, suppliers, investors and consumers are naturally going to gravitate towards businesses that share the same ESG values: so make sure it forms a key part of your strategy. 

 

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