Three-Step Framework for Value-Based Target Derivation PPT

This PPT slide, part of the 34-slide People Productivity Toolkit PowerPoint presentation, outlines a structured approach to deriving value-based targets through a three-step process. It emphasizes the importance of both top-down and bottom-up methodologies in target derivation. The first step, "Suggested targets," highlights the need for capital-market-based target derivation, which likely involves analyzing market conditions and financial metrics to set initial benchmarks. This is contrasted with the bottom-up approach, which focuses on product-market-based target derivation, suggesting that insights from operational levels are equally vital.

The second step, labeled "Target-setting process," introduces a cyclical framework involving interpretation, discussion, and decision-making. This indicates that target setting is not a one-off exercise, but rather an iterative process that requires collaboration and alignment among stakeholders. The cycle suggests that targets should be revisited and refined based on ongoing discussions and insights, ensuring they remain relevant and achievable.

The final step, "Target agreement," culminates in a formalized target, illustrated with an example of an agreed change in CVA (Customer Value Added) goal for business units. This underscores the necessity of consensus among team members and leadership to ensure that targets are not only aspirational, but also actionable.

Overall, the slide effectively communicates a systematic approach to target setting that integrates both market insights and operational realities. This method can enhance alignment across the organization, ensuring that all levels are engaged in the process of defining and achieving value-based targets.

EXPLORE MORE SLIDES FROM THIS PRESENTATION

EXPLORE MORE PRESENTATIONS ON

Human Resources Workplace Productivity Leadership