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Identifying the Value Points within the Corporation <ul><li>1 Hour Workshop </li></ul><ul><li>Alliance for Corporate Wealt...
Workshop Agenda <ul><li>Introduction </li></ul><ul><li>Common Value Points </li></ul><ul><li>Emerging Value Points   </li>...
Introduction <ul><li>Purpose of this workshop: </li></ul><ul><li>- Outline some good  focal points  for creating higher va...
<ul><li>Common </li></ul><ul><li>Value </li></ul><ul><li>Points </li></ul>
Common Value Points –  Four Good Sources <ul><li>Value Based Finance </li></ul><ul><li>Balanced Scorecard Enablers </li></...
Value Based Finance –  From Accounting to Real Finance Traditional Accounting Value Added Finance Transaction oriented / a...
Benefits of Value Based Finance  <ul><li>By focusing on  non-financial measurements , the finance function pulls in other ...
Scorecard Enablers –  Applying the Generic Drivers  <ul><li>Generic Models provide a good starting point for understanding...
Human Resource Capital Scorecard <ul><li>The value created by people is often  intangible  – knowledge, leadership, collab...
HR Capital Scorecard Framework – Built Around Four Basic HR Activities ACQUIRE   –  Hiring practices, Recruitment, Fill Ra...
Strategic Business Analysis through Competitive Intelligence <ul><li>Strategic Planning is  dynamic  through Competitive I...
<ul><li>Emerging </li></ul><ul><li>Value </li></ul><ul><li>Points </li></ul>
Emerging Trends for Understanding Value Points Going Forward <ul><li>The discipline of management will give way to the dis...
<ul><li>Leadership Practices Inventory (LPI) Model </li></ul>
Measuring Leadership using the LPI Model <ul><li>Leadership Practices Inventory  (LPI) Model was developed by James M. Kou...
LPI Model Components The LPI Model is built around five leadership practices and ten leadership commitments: <ul><li>Find ...
LPI Model – Annual Survey from Observers of Leaders Rating Scale: 1 – Almost Never  |  2 – Rarely  |  3 – Seldom  |  4 – O...
Resources on the LPI Model <ul><li>  </li></ul><ul><li>Very  inexpensive and practical  model - $ 65.00 for complete CD an...
<ul><li>Value </li></ul><ul><li>Dynamics </li></ul><ul><li>Framework </li></ul>
Value Dynamics Framework Model  <ul><li>Based on a three-year study of 10,000 companies by Arthur Andersen. </li></ul><ul>...
Basic Principle behind Value Dynamics Framework  <ul><li>Assets have  inbound  and  outbound relationships ; customer asse...
Critical Concept – From Tangible to Intangible Assets Increasingly, value points are coming from the Intangibles, outside ...
Creating the Overall Model <ul><li>Identify and  classify  your assets into the five categories. </li></ul><ul><li>Underst...
Survey Questions – How well is your company using  employee  assets?  For employee recruiting process?  For employee train...
Resources on the Value Dynamics Framework The Value Dynamics Framework is completely documented in  the book:  Cracking th...
<ul><li>Denison </li></ul><ul><li>Cultural </li></ul><ul><li>Model </li></ul>
Denison Model - Introduction <ul><li>The culture of an organization, whether explicit or implicit, is  fundamental  to the...
Denison Model Framework Degree to which the organization is  clear about  its vision, goals, objectives and  strategic dir...
Three Critical Management Practices of the  Consistency  Trait Coordination and Integration  - Different functions and uni...
Survey Question Examples –  Consistency Trait
How to use the Denison Model <ul><li>Do you have cultural  issues ? </li></ul><ul><li>Propose solutions  to address your i...
High and Low Performers –  Denison Model High Performing Companies Composite of companies that had an ROI of 30% Low Perfo...
Resources on Cultural Assessments For more information, visit  www. denisonculture .com Facilitator’s Guide for Cultural C...
<ul><li>Creativity </li></ul><ul><li>Model </li></ul>
Important Concepts behind the Creativity Model <ul><li>Creativity Model is based on the  highly respected research  of Car...
Creativity Model Framework – Eight Creative Talents Adventurer Navigator Explorer Visionary Pilot Harmonizer Inventor Poet...
Key Points about the Eight Creative Talents <ul><li>All eight talents have  equal   value . </li></ul><ul><li>All eight ta...
Myers Briggs Types aligned around the Eight Creative Talents E xtroverts – Sociable, people oriented, works well in groups...
Resources on the Creativity Model <ul><li>The Creativity Model is completely documented in the  </li></ul><ul><li>book  Br...
Overall Framework for applying these tools and techniques (Big Picture) Value Dynamics Framework Dennison Cultural Survey ...
Closing Comments <ul><li>Most value points are  easy to recognize  and conceptually, they are  easy to comprehend . </li><...
Additional Information <ul><li>Download presentation and reference files from: </li></ul><ul><li>www.exinfm.com/workshop.h...
Questions and Comments <ul><li>Matt H. Evans, CPA, CMA, CFM </li></ul><ul><li>Email:  [email_address]   </li></ul><ul><li>...
<ul><li>Back Up </li></ul><ul><li>Slides </li></ul>
Survey Questions – How well is your company using  physical  assets? Real estate / land for productive use or investment? ...
Survey Questions – How well is your company using  financial  assets? Cash reserves?   Receivables in minimizing the cash-...
Survey Questions – How well is your company using  customer  assets? Customer satisfaction information?  Current customer ...
Survey Questions – How well is your company using  organizational  assets? Leadership to drive innovation and passion?  Bu...
Value Dynamics – Survey Process Level of  agreement  acceptable? Likely possibility  that BUs have  independent assets? De...
Run survey data through quality control matrix for refining the data Level of agreement Level of awareness (% of responden...
Value Dynamic Recommendations – Within the Business Model Vision  & Goals Competencies Communication & Management Systems ...
Three Critical Management Practices of the  Adaptability  Trait Creating Change  - The organization is able to create adap...
Three Critical Management Practices of the  Mission  Trait Strategic Direction and Intent  - Clear strategic intentions co...
Three Critical Management Practices of the  Involvement  Trait Capability Development  - The organization continually inve...
Example of Action Plan -  Denison Cultural Model Denison Cultural Model <ul><li>Give the future the attention it deserves ...
Combining the Results – Value Dynamics and Denison Cultural E = Enabler B = Barrier Creating  Change Customer  Focus Organ...
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  1. 1. Identifying the Value Points within the Corporation <ul><li>1 Hour Workshop </li></ul><ul><li>Alliance for Corporate Wealth Conference </li></ul><ul><li>www.corporatewealth.info </li></ul><ul><li>Presented by: </li></ul><ul><li>Matt H. Evans, CPA, CMA, CFM </li></ul><ul><li>January 21, 2005 </li></ul><ul><li>Orlando, Florida </li></ul>
  2. 2. Workshop Agenda <ul><li>Introduction </li></ul><ul><li>Common Value Points </li></ul><ul><li>Emerging Value Points </li></ul><ul><li>The LPI Model </li></ul><ul><li>Value Dynamics Framework Model </li></ul><ul><li>Denison Cultural Model </li></ul><ul><li>The Creativity Model </li></ul><ul><li>Closing Comments </li></ul><ul><li>Additional Information </li></ul>
  3. 3. Introduction <ul><li>Purpose of this workshop: </li></ul><ul><li>- Outline some good focal points for creating higher value </li></ul><ul><li>within the corporation </li></ul><ul><li>- Provide some practical tools and techniques that </li></ul><ul><li>everyone can start to use immediately </li></ul><ul><li>- Help frame the knowledge base for the Alliance for </li></ul><ul><li>Corporate Wealth </li></ul>
  4. 4. <ul><li>Common </li></ul><ul><li>Value </li></ul><ul><li>Points </li></ul>
  5. 5. Common Value Points – Four Good Sources <ul><li>Value Based Finance </li></ul><ul><li>Balanced Scorecard Enablers </li></ul><ul><li>Human Resource Capital Scorecard </li></ul><ul><li>Strategic Business Analysis = Competitive Intelligence </li></ul>
  6. 6. Value Based Finance – From Accounting to Real Finance Traditional Accounting Value Added Finance Transaction oriented / approvals Backward checking Enforces rules / compliance Advocates profits Cost Control Bottom Line / Short Term Financial performance only Narrow understanding of the business Oversight and “Cop” Like Historical, Looking Back Manages and works to resolve Integrate and Re-Design Internal Consultant / Facilitates Advocates value Process Improvement Customer / Long Term Non Financial Performance linked to Financial Performance Broad in-depth understanding of the business Service oriented Predictive Forecasting
  7. 7. Benefits of Value Based Finance <ul><li>By focusing on non-financial measurements , the finance function pulls in other functional areas into the value management process. </li></ul><ul><li>Finance is the main proponent of value – educating others on how value is created. </li></ul><ul><li>Finance adds value through major projects : </li></ul><ul><li>- Define Organizational Performance </li></ul><ul><li>- Leads Initiatives on process improvement </li></ul><ul><li>- Improve out-of-date systems </li></ul><ul><li>- Value Chain Analysis </li></ul>
  8. 8. Scorecard Enablers – Applying the Generic Drivers <ul><li>Generic Models provide a good starting point for understanding what drives value: </li></ul><ul><li>- Customer Value comes from certain value drivers: Quality, </li></ul><ul><li>Time, Pricing, Image, Reputation, Innovative features, etc. </li></ul><ul><li>- Process Value comes from three phases in process </li></ul><ul><li>delivery: Pre Delivery (meet customer demands in a pro- </li></ul><ul><li>active way), Delivery (Rapid turnaround times), and Post </li></ul><ul><li>Delivery (After sale service) </li></ul><ul><li>- Organizational Value comes from employee results, </li></ul><ul><li>system results, and organizational culture. </li></ul>
  9. 9. Human Resource Capital Scorecard <ul><li>The value created by people is often intangible – knowledge, leadership, collaboration, etc. </li></ul><ul><li>Standard financial measurements are usually inappropriate for measuring human resource capital. </li></ul><ul><li>Sources of value other than people are potential sources until human interaction takes place. </li></ul><ul><li>How people are managed has profound implications on organizational performance and value. </li></ul><ul><li>The HR (Human Resource) Capital Scorecard measures the management activities associated with Human Resource Capital. </li></ul>
  10. 10. HR Capital Scorecard Framework – Built Around Four Basic HR Activities ACQUIRE – Hiring practices, Recruitment, Fill Rates, Quality of New Hires, etc. HR Strategic Plan MAINTAIN – Compensation, Benefits Administration, etc. RETAIN – Identify top talent, retention programs, motivation, etc. DEVELOP – Coaching, Training, Supervision, Job Rotation, etc. Source: The ROI of Human Capital by Jac Fitz-enz Traditional Financial Metrics such as Cost per Hire vs. Value Added Metrics such as Satisfaction with Hire
  11. 11. Strategic Business Analysis through Competitive Intelligence <ul><li>Strategic Planning is dynamic through Competitive Intelligence (CI) </li></ul><ul><li>Competitive Intelligence is required to protect your competitive advantages in the marketplace </li></ul><ul><li>Risk Management is too internal and CI brings an external dimension to risk management </li></ul><ul><li>Senior Management is too inward in their thinking and you need CI as a reality check </li></ul>
  12. 12. <ul><li>Emerging </li></ul><ul><li>Value </li></ul><ul><li>Points </li></ul>
  13. 13. Emerging Trends for Understanding Value Points Going Forward <ul><li>The discipline of management will give way to the discipline of leadership </li></ul><ul><li>Complex adaptive systems will help advance the concept of the Learning Organization </li></ul><ul><li>Organize around processes as opposed to functional silos for increased flexibility and innovation </li></ul><ul><li>Processes will become more simple , self serve , and more collaborative . </li></ul><ul><li>Technology has and will continue to be an important component of value – especially emerging technologies such as Nano-Technology . </li></ul>
  14. 14. <ul><li>Leadership Practices Inventory (LPI) Model </li></ul>
  15. 15. Measuring Leadership using the LPI Model <ul><li>Leadership Practices Inventory (LPI) Model was developed by James M. Kouzes and Barry Z. Posner. </li></ul><ul><li>Based on 20 years of research and supported by case studies with 10,000 leaders and 50,000 constituents. </li></ul><ul><li>Recognizes that leadership is a measurable behavior that people can observe. </li></ul><ul><li>Uses assessment surveys from both the leader and observers of leaders. Creates greater awareness of how to improve leadership competencies. </li></ul>                    
  16. 16. LPI Model Components The LPI Model is built around five leadership practices and ten leadership commitments: <ul><li>Find Your Voice </li></ul><ul><li>Set the Example </li></ul><ul><li>Envision the Future </li></ul><ul><li>Enlist Others </li></ul><ul><li>Search for Opportunities </li></ul><ul><li>Experiment and Take Risks </li></ul><ul><li>Foster Collaboration </li></ul><ul><li>Strengthen Others </li></ul><ul><li>Recognize Contributions </li></ul><ul><li>Celebrate the Values and Victories </li></ul>Model the Way Inspire a Shared Vision Challenge the Process Enable Others to Act Encourage the Heart
  17. 17. LPI Model – Annual Survey from Observers of Leaders Rating Scale: 1 – Almost Never | 2 – Rarely | 3 – Seldom | 4 – Once in a While | 5 – Occasionally | 6 – Sometimes 7 – Fairly Often | 8 – Usually | 9 – Very Frequently | 10 – Almost Always 4. Actively listens to diverse points of view. 5. Appeals to others to share an exciting dream of the future. 6. Treats others with dignity and respect . 7. Supports the decisions that people make on their own 2. Develops cooperative relationships among the people he / she works with 3. Praises people for a job well done. 8. Talks about future trends that will influence how our work gets done. 1. Sets a personal example of what he / she expects of others.
  18. 18. Resources on the LPI Model <ul><li> </li></ul><ul><li>Very inexpensive and practical model - $ 65.00 for complete CD and Surveys – Facilitator’s Guide: </li></ul><ul><li>Visit www.leadershipchallenge.com for more information. </li></ul>
  19. 19. <ul><li>Value </li></ul><ul><li>Dynamics </li></ul><ul><li>Framework </li></ul>
  20. 20. Value Dynamics Framework Model <ul><li>Based on a three-year study of 10,000 companies by Arthur Andersen. </li></ul><ul><li>Used to determine how well a corporation is taking advantage of its asset capabilities . </li></ul><ul><li>Rates the contribution of assets and helps corporations leverage all assets for driving higher value. </li></ul><ul><li>Distinguishes the relationships of how assets add value in combination with one another. </li></ul><ul><li>Recognizes that assets are not fully controlled by the corporation – customers, suppliers, partners, etc. </li></ul><ul><li>Uses a much broader definition of assets (beyond the accounting model) for creating value. </li></ul>
  21. 21. Basic Principle behind Value Dynamics Framework <ul><li>Assets have inbound and outbound relationships ; customer assets are outbound whereas employee assets are inbound (convert resources into products and services) </li></ul><ul><li>All assets have outputs – Organizational assets (systems, information, etc.), Financial Assets (cash flow, etc.) </li></ul>By understanding these relationships, we “ crack the value code”
  22. 22. Critical Concept – From Tangible to Intangible Assets Increasingly, value points are coming from the Intangibles, outside of the traditional accounting model. In the old manufacturing economy, Balance Sheet assets in the accounting model were the critical value points.
  23. 23. Creating the Overall Model <ul><li>Identify and classify your assets into the five categories. </li></ul><ul><li>Understand the relationship of assets and how they are used within the business. </li></ul><ul><li>Front End Survey Work: Determine qualified people who can confirm how assets are used and what value they contribute to the business. </li></ul><ul><li>Conduct Value Dynamics Survey for all five asset categories. </li></ul><ul><li>Back End Survey Work: Reach consensus on final data through workshops, peer exchanges, and other forums. </li></ul><ul><li>Align your business model around those assets that add the most value. How should we use our assets going forward? </li></ul>
  24. 24. Survey Questions – How well is your company using employee assets? For employee recruiting process? For employee training program? For employee satisfaction data? For resources to improve employee quality of life? For information technology to leverage employee knowledge? For collaborations or joint ventures to start new businesses? Best Very Above Below Very Worst Don’t Practice Good Good Average Average Average Poor Poor Practice Know Needs Does the Best Don’t Work Job Practices Know Second Pass on Survey – More precision First Pass on Survey – Basic Feel for How Data is Breaking If you are getting a lot of Don’t Knows, then you need to conduct some educational workshops with survey candidates before you continue with the survey and development of the Model
  25. 25. Resources on the Value Dynamics Framework The Value Dynamics Framework is completely documented in the book: Cracking the Value Code by Richard E.S. Boulton, Barry D. Libert, and Steve M. Samek. “ Organizations are creating value in totally new ways, using assets and combination of assets heretofore unrecognized under traditional accounting systems – and certainly unmeasured. In such a milieu, old methods of managing and measuring are simply not up to the task. To ignore the significance of the changes afoot in business today is to ignore reality itself as the page turns on a new millennium. And what organization can thrive, or even survive, in a world of illusion? None.” - Cracking the Value Code
  26. 26. <ul><li>Denison </li></ul><ul><li>Cultural </li></ul><ul><li>Model </li></ul>
  27. 27. Denison Model - Introduction <ul><li>The culture of an organization, whether explicit or implicit, is fundamental to the execution of strategy and high performance. </li></ul><ul><li>The Denison Model was developed by Daniel Denison and William S. Neale based on 15 years of research with 1,000 companies . </li></ul><ul><li>The Denison Model describes organizational culture around four traits consisting of twelve management practices . </li></ul><ul><li>Very business oriented – directly linked to the bottom line. </li></ul>
  28. 28. Denison Model Framework Degree to which the organization is clear about its vision, goals, objectives and strategic direction Degree to which the organization has values , systems , and processes that support the vision, goals, objectives, and strategy Degree to which the organization clearly understands the needs and requirements of customers , responds and adjusts to meet those needs Degree to which everyone is engaged and involved in helping move the organization forward
  29. 29. Three Critical Management Practices of the Consistency Trait Coordination and Integration - Different functions and units of the organization are able to work together well to achieve common goals. Organizational boundaries do not interfere with getting work done. Agreement - The organization is able to reach agreement on critical issues. This includes both the underlying level of agreement and the ability to reconcile differences when they occur . Core Values - Members of the organization share a set of values which create a sense of identity and a clear set of expectations.
  30. 30. Survey Question Examples – Consistency Trait
  31. 31. How to use the Denison Model <ul><li>Do you have cultural issues ? </li></ul><ul><li>Propose solutions to address your issues. </li></ul><ul><li>Set targets and take action steps to change your culture. </li></ul><ul><li>Understand the benefits – How do the action steps close the gaps? </li></ul><ul><li>Determine the risks of not taking action to close your cultural gaps. </li></ul><ul><li>Due Diligence - Compatibility issues prior to a merger. </li></ul><ul><li>Benchmark against other companies from the Denison Database. </li></ul>
  32. 32. High and Low Performers – Denison Model High Performing Companies Composite of companies that had an ROI of 30% Low Performing Companies Composite of companies that had an ROI of 9%
  33. 33. Resources on Cultural Assessments For more information, visit www. denisonculture .com Facilitator’s Guide for Cultural Compass - $ 98.00. Visit www.newtrainingideas.com
  34. 34. <ul><li>Creativity </li></ul><ul><li>Model </li></ul>
  35. 35. Important Concepts behind the Creativity Model <ul><li>Creativity Model is based on the highly respected research of Carl Jung, Katherine Briggs, and Isabel Myers. </li></ul><ul><li>Breaks long-standing myths about creativity: </li></ul><ul><li>- Creativity is NOT about ideas, it’s about the range of outcomes that are available to the organization. </li></ul><ul><li>- Creativity is NOT about certain talents (art, music, etc.), it is about using the eight creative talents that are found in everyone . </li></ul><ul><li>- Creativity is NOT about being different, but more about articulating results that no-one else recognizes. </li></ul><ul><li>Creativity is critical to problem solving because of increased complexity, the need for innovation, and increased competition. </li></ul>
  36. 36. Creativity Model Framework – Eight Creative Talents Adventurer Navigator Explorer Visionary Pilot Harmonizer Inventor Poet Quick to Act, Self Expressive, Aggressive Problem Solver, Fun Very Precise, Highly Focused, Analytical, Curious, Systematic Social, Helpful, Good People Skills, Seeks Consensus, Flexible High Values, Tolerant, Quietly Curious, Supportive, Skilled Writer Great sense of Future, Big Picture, Comprehends Complexity Organizing, Planning, Team Leader, Systems Thinker, Sets Goals Very Open, Good Source of Ideas, Energetic, Pursues New Things Deliberate, Observant, Thorough, Grasp’s Details, Helps Clarify
  37. 37. Key Points about the Eight Creative Talents <ul><li>All eight talents have equal value . </li></ul><ul><li>All eight talents work differently . </li></ul><ul><li>You need access to all eight talents for creating different results – cover all the bases. </li></ul><ul><li>Since people have different creative talents, a team environment helps leverage all eight creative talents. </li></ul><ul><li>If you can consistently apply all eight creative talents, then your organization will have more control over its destiny . </li></ul><ul><li>Understanding and using the Myers-Briggs Type Indicator will help explain how you can apply all eight creative talents. </li></ul>
  38. 38. Myers Briggs Types aligned around the Eight Creative Talents E xtroverts – Sociable, people oriented, works well in groups, interacts, engaging. I ntroverts – Intense, works through ideas, reflects, reserved, few relationships. S ensing – Practical, responsive, realistic, factual, accurate, detail oriented. I ntuitive – Insightful, innovative, forward thinking, strategic, learning, inspires. T hinking – Logical, objective, reasoning, consistent, analytical, information user. F eeling – Personal, cooperative, values, relates to others, persuades, humane. J udging – Decision maker, planning, goal oriented, fast to act, hard working. P erceiving – Flexible, adaptive, casual, goes with the flow, improvise. Adventurer Navigator Explorer Visionary Pilot Harmonizer Inventor Poet <ul><li>INTJ </li></ul><ul><li>INFJ </li></ul><ul><li>ISTJ </li></ul><ul><li>ISFJ </li></ul><ul><li>ESTP </li></ul><ul><li>ESFP </li></ul><ul><li>ENTP </li></ul><ul><li>ENFP </li></ul><ul><li>ISTP </li></ul><ul><li>INTP </li></ul><ul><li>ESTJ </li></ul><ul><li>ENTJ </li></ul><ul><li>ISFP </li></ul><ul><li>INFP </li></ul><ul><li>ESFJ </li></ul><ul><li>ENFJ </li></ul>
  39. 39. Resources on the Creativity Model <ul><li>The Creativity Model is completely documented in the </li></ul><ul><li>book Breakthrough Creativity by Lynne C. Levesque. </li></ul><ul><li>For more information, visit www.lynnelevesque.com </li></ul>“ Creativity drives growth, and creative people drive every great enterprise. It’s not too trite to say that. These days, we’re all too easily caught up in the tactics of competition. We can forget that sustainable advantage is ultimately a function of a company’s ability to consistently generate, develop, and sell valuable ideas. Which is to say, creativity is at the heart of work and business.” - John A. Byrne, Editor – Fast Company Magazine, December 2004                                      
  40. 40. Overall Framework for applying these tools and techniques (Big Picture) Value Dynamics Framework Dennison Cultural Survey Identify Major Value Related Issues Communication and Management Systems Strategies, planning, and budgeting Vision Goals Competencies Products - Services - Processes Determine how these value related issues align to various layers within your Organizational Framework LPI Model Competitive Intelligence Creativity Model Apply specific techniques to close the value gaps within your Organizational Framework Organization Framework (IBM Model)
  41. 41. Closing Comments <ul><li>Most value points are easy to recognize and conceptually, they are easy to comprehend . </li></ul><ul><li>However, getting management “value-focused” is not easy and therefore, most corporations have significant points of value that need further development. </li></ul><ul><li>Ironically, getting the plane off the runway seems to be the biggest challenge . . . . </li></ul><ul><li>And if corporations would just start with a modest understanding of where value comes from (leadership, culture, etc.), the corporation could realize enormous increases in value. </li></ul>
  42. 42. Additional Information <ul><li>Download presentation and reference files from: </li></ul><ul><li>www.exinfm.com/workshop.html </li></ul><ul><li>Workshop Slides (powerpoint) </li></ul><ul><li>Building HR Capital </li></ul><ul><li>Aligning Human Capital with Business Strategy </li></ul><ul><li>Value Dynamics Presentation </li></ul><ul><li>Five Ways to Develop Corporate Culture </li></ul><ul><li>Organizational Cultures that Get Financial Results </li></ul><ul><li>Applications of the Denison Cultural Model </li></ul>
  43. 43. Questions and Comments <ul><li>Matt H. Evans, CPA, CMA, CFM </li></ul><ul><li>Email: [email_address] </li></ul><ul><li>Phone: 1-877-689-4097 </li></ul>
  44. 44. <ul><li>Back Up </li></ul><ul><li>Slides </li></ul>
  45. 45. Survey Questions – How well is your company using physical assets? Real estate / land for productive use or investment? Buildings and facilities? Existing equipment or newly acquired equipment? Inventory management to minimize risk of not delivering? Information technology infrastructure? Supply chain management to optimize the use of and need for physical assets? Best Very Above Below Very Worst Don’t Practice Good Good Average Average Average Poor Poor Practice Know Value Dynamics Model
  46. 46. Survey Questions – How well is your company using financial assets? Cash reserves? Receivables in minimizing the cash-conversion cycle? Investment strategies in order to increase profitability? Debt strategy to manage or eliminate debt? Equity to further business expansion? Information technology to enable financial management? Best Very Above Below Very Worst Don’t Practice Good Good Average Average Average Poor Poor Practice Know Value Dynamics Model
  47. 47. Survey Questions – How well is your company using customer assets? Customer satisfaction information? Current customer information to expand customer base? To develop customer loyalty? Collaborative relationships to better serve customers? Information technology to enable web-security? Supply chain management to increase customer satisfaction? Best Very Above Below Very Worst Don’t Practice Good Good Average Average Average Poor Poor Practice Know Value Dynamics Model
  48. 48. Survey Questions – How well is your company using organizational assets? Leadership to drive innovation and passion? Business strategy ? Structure to delegate the responsibilities? Processes to identify business opportunities? Culture to foster honesty and respect? Branding in the marketplace? Knowledge in product development and marketing? Intellectual property? Best Very Above Below Very Worst Don’t Practice Good Good Average Average Average Poor Poor Practice Know Value Dynamics Model
  49. 49. Value Dynamics – Survey Process Level of agreement acceptable? Likely possibility that BUs have independent assets? Develop alternative model for Value Dynamics data representation Facilitated Peer Exchange (Gartner Best Practice) Reassess Y Y Y N N Level of awareness acceptable? Conduct Workshops Reassess Y N Develop standard Value Dynamics data representation Surveys Received Value Dynamics Model
  50. 50. Run survey data through quality control matrix for refining the data Level of agreement Level of awareness (% of respondents answering “Don’t Know”) High Low Low number of “Don’t Knows” & High level of agreement High number of “Don’t Knows” & Low level of agreement Low number of “Don’t Knows” & Low level of agreement High number of “Don’t Knows” & High level of agreement Value Dynamics Model
  51. 51. Value Dynamic Recommendations – Within the Business Model Vision & Goals Competencies Communication & Management Systems Strategies, Planning & Budgeting <ul><li>Action Items </li></ul><ul><li>Develop a competency model and performance management system . </li></ul><ul><li>Benefits </li></ul><ul><li>A competency model will outline the necessary knowledge, skills and abilities for each position, allowing employees to understand how their jobs fit into the goals and values of the organization. </li></ul><ul><li>A performance management system will ensure employees and functional areas are evaluated using standardized performance metrics. </li></ul>ISSUE: Management does not believe they have the competencies necessary to meet customers’ needs, nor do they feel empowered to use the competencies they do have.
  52. 52. Three Critical Management Practices of the Adaptability Trait Creating Change - The organization is able to create adaptive ways to meet changing needs. It is able to read the business environment, quickly react to current trends, and anticipate future changes. Customer Focus - The organization understands and reacts to their customer, and anticipates their future needs. It reflects the degree to which the organization is driven by a concern to satisfy their customer. Organizational Learning - The organization receives, translates, and interprets signals from the environment into opportunities for encouraging innovation, gaining knowledge and developing capabilities. Denison Cultural Model
  53. 53. Three Critical Management Practices of the Mission Trait Strategic Direction and Intent - Clear strategic intentions convey the organization's purpose, make it clear how everyone can contribute and &quot;make their mark&quot; in the industry. Goals and Objectives - A clear set of goals and objectives can be linked to the mission, vision, and strategy, and provide everyone with a clear direction in their work. Vision - The organization has a shared view of a desired future state. It embodies core values and captures the hearts and minds of the organization's people, while providing guidance and direction. Denison Cultural Model
  54. 54. Three Critical Management Practices of the Involvement Trait Capability Development - The organization continually invests in the development of employees' skills in order to stay competitive and meet ongoing business needs. Team Orientation - Value is placed on working cooperatively toward common goals for which all employees feel mutually accountable. The organization relies on team effort to get work done. Empowerment - Individuals have the authority, initiative and ability to manage their own work. This creates a sense of ownership and responsibility toward the organization. Denison Cultural Model
  55. 55. Example of Action Plan - Denison Cultural Model Denison Cultural Model <ul><li>Give the future the attention it deserves </li></ul><ul><li>Develop a philosophy that long and short-term interests can be reconciled </li></ul><ul><li>Make everyone in the organization familiar with your vision, mission, and goals </li></ul><ul><li>Hold strategy articulation sessions to plan for the future. Communicate these plans (Vision, Mission, Goals) to employees, and ensure they know how their jobs fit into the company’s goals </li></ul><ul><li>Create a list of criteria that projects must meet before they are accepted. Make sure short term and long term goals and interests are considered when creating criteria </li></ul><ul><li>Determine the best communication vehicle to cascade the vision, mission, and goals to all levels of the organization </li></ul>Recommendations Action Plan Benefits <ul><li>If employees understand and can positively identify with the Company’s vision, mission, and goals, there should be a positive impact on profitability, sales / revenue growth, market share, perceived quality, and employee satisfaction. </li></ul>ISSUE: Need to better articulate the company’s vision, mission and goals. This will translate into increased revenue growth, quality, and employee satisfaction.
  56. 56. Combining the Results – Value Dynamics and Denison Cultural E = Enabler B = Barrier Creating Change Customer Focus Organiz- ational Learning Strategic Direction & Intent Goals & Objectives Vision Coordination & Integration Agreement Core Values Capability Development Team Orientation Empower- ment Physical Assets B B B Financial Assets E B B B B B E 3 Customer Assets E 2 E B B B B B B B Employee/ Supplier Assets E E B B B B B B E 3 B B Organization Assets E E B B B B B B B E 3 B B Involvement DENISON V A L U E D Y N A M I C S Adaptability Mission 1 Consistency This chart was developed by comparing Denison survey results to Value Dynamics concepts. Value Dynamics and Denison Cultural Model Major Cultural Issue impacting value
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