We have collectively spent around 60 years finding value creating opportunities in a wide range of businesses from corporates to start-ups. Delivering against these value creating opportunities has delivered £millions in benefits across many businesses.
Below, we take you through how to approach and identify value creating opportunities in your business.
Value creating opportunities
Value opportunities can occur when management thinks and/or is told X is happening but really Y happening instead. It may be only slightly different or very different. This difference may hold real value for the business
|Management thinks / is told||Actual reality|
|All our products are profitable||A detailed product profitability analysis shows that only 77% of the products are profitable|
|We get the best price from our key suppliers for the quality, MOQ, service level etc||By asking the right questions, planning our purchases more carefully and communicating those plans regularly to our suppliers, the price drops by 15%|
You are possibly reading this thinking “that type of example is not present in my company”. Chances are it is. The only really important point is how much the missed opportunities is costing you – pence, pounds, thousands or millions.
Finding Value opportunities
- To find value creating opportunities you need to have the right mindset. You need to be curious. Challenging the status quo should be perceived as expected, supported or celebrated.
- As a manager, you will need to look through data with your team members as well as listen to their views and ideas. By considering what you are being told and what the data is telling you, usually allows you to find value creating opportunities. This requires
- Investment in gathering and collating data.
- Availability of the right data, relevant to the key drivers of your business.
- Investment in the ability to extract and analyse data to a detailed level.
- Good team members who know their areas
- Even better, is to create a culture in which your staff members are actively looking for opportunities themselves. When opportunities are found, the management team supports taking action as well as celebrating the person or team who found the opportunity and does this consistently. Easily said, not so easily done.
Key steps to realising value creating opportunities
- Recruit the most suitable staff members based on skills and experience to undertake the changes to allow the company to realise the value opportunity. Change involves people, and therefore people skills in those leading or managing the changes are very important.
- Make sure the project is resourced to enable it to succeed. Both in capacity terms and capability terms.
- There should be a management team member sponsoring the project, who is regularly checking up on progress and mobilising support as needed.
- Create visibility of the project and monitor the progress. Include milestones and celebrate the wins publicly.
- Keep focused on the project until is it completed. Don’t get distracted by new opportunities until the project is finished.
Emerson Nash works in partnership with you and your teams to find value building opportunities. We then ensure that a project is delivered to capture those opportunities. Call us to find out about our free ValueCreator day or half day programmes.