Framework for Developing a Value Creation Strategy PPT

This PPT slide, part of the 101-slide Complete Guide to Value Creation PowerPoint presentation, presents a structured approach to developing a Value Creation Strategy, likening it to the construction of a house. The overarching goal is to create a detailed strategy that aligns with specific financial targets, represented as the roof of the house. The pillars supporting this structure are the organization's priorities and objectives, while the managerial processes form the foundation.

Three key areas are outlined: Growth Agenda, Improved Return on Capital, and Low-Risk Financial Policies. Each area includes specific objectives. The Growth Agenda emphasizes achieving consistent organic growth, targeting a rate of 1.5 times nominal GDP, and focusing on performance in acquisitions. It suggests limiting acquisitions to those that can be easily integrated, with a revenue growth target of 7% to 11%.

The Improved Return on Capital section stresses maintaining capital efficiency through various means, such as enhancing capex control and reducing working capital. It also encourages shifting investments towards businesses that promise higher returns over time, aiming for a 16% return on invested capital.

Lastly, the Low-Risk Financial Policies segment advocates for a conservative capital structure, retaining a single-A rating while ensuring a steady dividend payout of 38%. This section highlights the importance of maintaining investor confidence while pursuing growth.

Overall, the slide emphasizes the necessity of aligning processes to support the value creation model, suggesting that a comprehensive understanding of these components is critical for effective strategy development.

This slide is part of the Complete Guide to Value Creation PowerPoint presentation.

This presentation is created by former McKinsey, BCG, Deloitte, EY, and Capgemini consultants. It covers multiple Value Creation frameworks utilized by global strategy consulting firms.

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Shareholder Value Strategy Development Value Creation Capital Structure Revenue Growth

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