This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
Value Based Management (VBM) PPT: Learn what VBM means, its framework, and how to apply value-driven strategies. Download this professional presentation now. Value Based Management (VBM) is a 22-slide PPT PowerPoint presentation slide deck (PPT) available for immediate download upon purchase.
Value Based Management (VBM) is a management philosophy driven by the goal of maximizing shareholder value. VBM encompasses the processes for creating, managing, and measuring value.
VBM differs from a profit-focused way of managing business. Specifically, VBM means that the decisions that you make today are not simply driven by short-term profit. Instead, we consider the longer-term effects that the decisions will have on organizational sustainability and profitability, reflected in future cash flows. The fundamental principle of VBM is the belief that future cash flow and growth are the source of our company's value.
VBM asks people within a company to think like owners and to make decisions that will ultimately benefit the owners. Managers and executives must constantly look for investment and growth opportunities that will create value—and use the company's capital in ways that ensure long-term, sustainable success.
This PPT delves into the core components of Value Based Management, emphasizing the importance of a Value Creation Mindset and robust Management Processes and Systems. It highlights how a value creation mindset ensures senior managers are fully aware that their ultimate financial objective is maximizing value. The document also outlines the necessity of management processes and systems that encourage managers and employees to behave in a way that maximizes the value of the organization.
The presentation provides a detailed breakdown of how to define value through discounted cash flows (DCF) and why this metric is crucial for taking a long-term view while focusing on the balance sheet. It also includes practical examples of value drivers at various levels, from generic to operational, and offers guidelines for successful VBM implementation. This comprehensive guide is essential for any executive looking to embed a value-based approach within their organization, ensuring decisions are made with a focus on long-term value creation and sustainability.
This PPT slide provides an overview of value drivers for hard goods retailers, focusing on "Company value," influenced by gross margin, warehouse costs, and delivery costs. Gross margin is assessed through 2 metrics: gross margin per transaction and the number of transactions, which directly impact profitability. Warehouse costs are analyzed via stores per warehouse and cost per warehouse, indicating that effective management can enhance financial performance. Delivery costs are broken down into trips per transaction and cost per trip, highlighting the importance of logistics in cost structure. Regular review of these key areas is essential to adapt to changing market conditions, emphasizing the dynamic nature of retail operations.
This PPT slide provides an overview of Value Drivers within Value Based Management (VBM). A value driver is any variable influencing a company's value. Three guidelines for developing Value Drivers are outlined:
1. Organize Value Drivers to identify those with the most significant impact on value, facilitating responsibility assignment to meet targets.
2. Define Value Drivers at a level of detail that aligns with line management's decision-making authority, ensuring clear and actionable metrics.
3. Distinguish between generic drivers, like sales growth and operating margins, and specific drivers tailored to unique operational contexts for effective management.
These guidelines enhance clarity, responsibility, and specificity in managing Value Drivers.
This PPT slide outlines the 2 essential components of Value-Based Management (VBM): a Value Creation Mindset and Management Processes and Systems. The Value Creation Mindset requires senior managers to prioritize maximizing value as the primary financial objective, with guidelines for balancing other objectives like employment or environmental goals. Understanding key performance variables that impact company value is critical for informed decision-making. Management Processes and Systems foster behaviors that align with value maximization through effective planning, target setting, performance measurement, and incentive systems. These processes are most effective when communication is linked to value creation. Both components are necessary for translating mindset into actionable strategies, ensuring organizations align operations and culture toward financial objectives.
This PPT slide outlines a structured approach to developing Action Plans essential for achieving organizational goals. Key components include ownership, emphasizing accountability by designating individuals to oversee progress and ensure timely execution. Action steps must be explicit and clear, with a single person responsible for each step to reinforce accountability. Support involves identifying individuals who assist the responsible person, enhancing collaboration. Communication is critical for keeping stakeholders informed about action step statuses, maintaining alignment, and understanding broader impacts. Metrics and budget considerations ensure each action has measurable outcomes and financial implications, with milestone and completion dates necessary for tracking progress. This framework emphasizes clarity, accountability, and communication as foundational elements for effective Action Plans.
This PPT slide outlines essential elements of a strategy development process focused on Value-Based Management (VBM). It begins with assessing valuation results and key assumptions through discussions with senior management to validate these assumptions. Weighing the value of alternative strategies considered, but rejected provides insights into decision-making and refines future strategies. Resource requirements are critical, as VBM emphasizes how business-unit managers present resource needs on the balance sheet, aligning resource allocation with strategic goals. Summarizing strategic plan projections should highlight key value drivers and analyze return on invested capital over time as a competitive benchmark. Analyzing alternative scenarios is vital for understanding potential impacts of competitive threats or opportunities, ensuring value maximization remains central to strategy development.
Source: Best Practices in Value Creation, Shareholder Value, Value Based Management, Value Drivers PowerPoint Slides: Value Based Management (VBM) PowerPoint (PPT) Presentation Slide Deck, PPT Lab
This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
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