Value Management Strategy

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Just before the holidays I wrote a Blog post on the Faulkner Technologies corporate Blog about Value Management Strategy. Over the last few weeks I have talked about this idea within our company and with a number of our customers and potential customers. The short version is below and I feel like if you can embrace the idea you can make a tremendous impact in any area of a company.

The General Idea:

‘Value Management Strategy’ is defining the key value points in your business and, through a continuous assessment process, getting yourself and your teams to focus on the most valuable customers, opportunities, contracts and services.

The main components of Value Management involve two simple ideas - 'Initial Strategic Value' and 'Ongoing Strategic Value', and they can re-define how you measure your business.

What this really means is that any thing that you do has to have an initial strategic value point it cannot be done simply to show effort, it makes no sense to build a sales pipeline just to show that you have added to the numbers of prospects, it makes no sense to develop new products or introduce new business processes simply to create change, you must be able to define and then measure the initial strategic value of doing things within a business.

This is also true in an ongoing sense. If you have an initial strategic value idea then you must have any ongoing strategic value idea. As we often find out even the best laid plans change and you must be able to look at the things that you do or the customers and products that make up your business to determine if the game is changing.

To make a quick point, value management strategy does not involve trolling your systems for financial or numerical data to try and paint a picture. This is not a question of business intelligence; it is a process of asking questions of the people who are as close to the activities as
possible within the company.

It's as simple as having the sales person answer questions about a new opportunity or customer or having the account and contract managers answer questions about the general performance of a customer or an ongoing contract. By measuring value in the form of basic questions and answers you serve to create a mental dialog within the business and this mental dialog makes it easy for people within the company to keep themselves on track.

To read the expanded version you can go and DOWNLOAD a short white paper with more examples on this idea.

Thanks,

Ed

Ed Loessi

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