Value Driven Management is the organization, coordination and execution of activities focused on growing the net value of products as the primary way to build business value. This slide show explains why accounting metric based management is flawed and why the enterprise should focus on the fundamental metrics to drive bottom-line growth.

1. Value Driven Management
Measure and Manage What Drives Sales and Profitability
(C) 2010 Wissmann Group. All rights reserved.

2. Popular Paradigm: AccounFng Metric Management
Upside AccounFng Metrics Downside of AccounFng Metrics
• They are readily calculated • Lagging measures of performance
• CalculaFons are based on a set of rules • Although investors and execuFves monitor and
• They come from audited financial statements use them, employees generally do not
• The methods are nearly idenFcal for all • They don’t help us figure out what to do next
organizaFons • They don’t enable responsive decision making
• They don’t help to idenFfy and miFgate risk
• They are very oQen short‐sighted
• Inward looking (don’t really consider
compeFFon)
BoUom‐line metrics don’t help when making strategic plans
(C) 2010 Wissmann Group. All rights reserved.

3. Value Driven Management—Clarity of AcFon
Fundamental Metrics Detect OpportuniFes:
• Product InnovaFons
• Service InnovaFons
• Process Improvements
• Pricing Based Revenue Leakage
• Customer SaFsfacFon Improvement
• Product Value and Cost Drivers
• CompeFtor Weaknesses
Do The Right Things Do Things Right Introduce Things Faster
Product Value Product Cost Pace of InnovaFon
BeUer Cheaper Faster
The fundamental metrics guide the strategic planning process
(C) 2010 Wissmann Group. All rights reserved.

4. Value Metrics Defined…
• Measure Product Value in $
• QuanFfy Customer Value in $
• Use Product Value in Financial Forecasts
• Map Value Drivers in $
• Guide You to Increased Net Product Value
• Use Product Value and Cost to set Prices
• QuanFfy the InnovaFve Power of Ideas
• Make Tradeoff Decisions Involving both Value and Costs
• Benchmark CompeFng Products on Value and Cost
Growing net product value becomes the focus of the enterprise
(C) 2010 Wissmann Group. All rights reserved.

5. Partner with the Wissmann Group
1. Contact us at WissmannGroup.com
2. We’ll discuss your challenges
3. We’ll develop a plan to overcome your challenges
4. We’ll partner to drive value into your products and business
5. Watch your boUom‐line metrics grow
Innovate SystemaFcally
Innovate with Confidence
(C) 2010 Wissmann Group. All rights reserved.

6. Our Suite of Services
ConsulFng
Product Value ReporFng Using InformaFon Technology
Value Driven Product Planning
Value Driven InnovaFon
Product & Service Value OpFmizaFon
Analysis
Product & Service Value Benchmarking
Product & Service Value ForecasFng
Product Value Driver Reports
PromoFon EffecFveness Reports
Product Value Based Pricing Studies
Workshops
ExecuFve Workshops (Custom)
The Value Driven OrganizaFon
Voice of the Customer ExploraFon (VoCE)
Total Product Value Analysis
Value Driver Analysis
Value Based Cash‐Flow ForecasFng
(C) 2010 Wissmann Group. All rights reserved.