Value Creation Framework Series: Direct Levers (PowerPoint PPT)

DESCRIPTION

Delivering superior Value Creation is one of the most pressing issue for the senior management. Since the early 1990s, Value-Based Management (VBM) has been viewed traditionally as a tool to help investors evaluate firms and let the executives analyze business performance and shareholder value.

However, VBM thinking has a number of challenges, e.g. an inadequate link between VBM practices and capital markets realities. A new methodology called the Value Creation Framework addresses these challenges to traditional VBM.

The Value Creation Framework is comprised of 4 core components:

1. Superior Relative Total Shareholder Return (RTSR)
2. Value Creation Aspirations
3. 4 Direct Levers of Value Creation
4. Corporate Center Practices

This presentation focuses on the third component—the 4 Direct Levers of Value Creation. Specific topics covered include VBM Thinking, Traditional vs. Evolved VBM, RTSR, ROI vs. RTSR, Intrinsic vs. Realized Value Thinking, and deep dives into 2 tools for Realized Value Thinking: P/E Drivers and Investor Discount Strategy.

The slide deck also includes some slide templates for you to use in your own business presentations.

The Value Creation Framework necessitates leaders to establish priorities and trade-offs for managing the Value Creation levers. This framework is designed to help senior executives focus on aligning their organizations around a shared mission, ensuring that all efforts are directed towards achieving superior RTSR. By translating RTSR goals into business unit targets, managers are held accountable for value creation, fostering a culture of continuous assessment and improvement.

The framework also emphasizes the importance of understanding investor expectations and managing the trade-off between intrinsic and realized value. Tools like P/E Drivers and Investor Discount Strategy are provided to offer insights into improving valuation and prioritizing strategic actions. This approach ensures that companies can effectively navigate the complexities of Value-Based Management and deliver sustainable competitive advantage.

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Source: Best Practices in Corporate Culture, Value Creation, Shareholder Value, Value Based Management PowerPoint Slides: Value Creation Framework Series: Direct Levers PowerPoint (PPT) Presentation, LearnPPT Consulting