Operational Methodologies

Companies today spend enormous amounts of money to message, misrepresent, manipulate, hide, and reframe the impact of their products, services, and practices.   These sizable investments create a tremendous chasm between customer perception, expectation, and reality they experience.  Compounding these challenges over the past decade, companies have consolidated power through vertical and horizontal market integration promising the value benefits of leverage of scale and efficiency.  Those benefits have not materialized; in fact they have amplified the gap between customer expectations and actual outcomes as a result of the growth of Bad Business Practices.  There is an extremely strong correlation between the growth of misaligned investments and practices and consolidated corporate power.  Perhaps the most detrimental impact of these trends is their impact on stunting and warping market innovation and evolution which is the capstone of misalignment practices and creates a tremendous multiplier effect regarding the negative impact on corporate performance medium to longer term.   

The Organize for ValueTM Methodology provides for a comprehensive framework for organizing an enterprise around alignment with value creation, delivery, and growth in order to drive performance.  Organize for ValueTM consists of value aligning methods and tools to apply to organizational disciplines, processes, and practices.  Similar to quality, knowledge management or other imbedded disciplines, align for value principles integrate seamlessly with existing disciplines to provide a broader and deeper understanding of actions and impacts.  This understanding can lead to a complete reversal of many if not all of the misrepresentation, manipulation, and extraction oriented business practices prevelant in the market today.

Governance for ValueTM allows directors the ability to truly impact the performance of their companies in the medium to longer term.  New methods and tools are leveraged to manage corporations in a way that greatly reduces the risk of short term speculation and extraction tactics that have led to many of the investment, expense, and resource misallocation.  By utilizing these tools to driver leadership at all levels in the company, align value creation and delivery with resource allocation and recognition corporate leadership can achieve sustainable leadership performance.

Manage for ValueTM provides a comprehensive set of value alignment methodologies that integrate seamlessly with existing management practices to bring an additional layer of analysis and understanding.  Insights that improve a company’s existing expertise’s ability to make better decisions, take more meaningful actions, and ultimately deliver stronger performance. 

Relationship Interest BalanceTM methodology provides a framework to properly evaluating and determining improvement priorities in the context of value for customers, management, and shareholders.  Priorities whose benefits have been significantly one sided in recent years.  Chronic short-termism1 has misaligned company initiatives and medium to longer term priorities.  The net effect of which is company evolution that extremely negatively impacts client value and creates the conditions for catastrophic performance failure.  Over orientation towards short term results, ownership value, profits, misrepresentation and manipulation tactics, and  

Companies that are considering and prioritizing initiatives should start with a client view to determine if the endeavor will positively or negatively impact value over time.  Far too many companies have become extremely aggressive in misrepresenting the value, cost, and impact of their products and services.  Companies have made huge investments to influence government entities to protect this misrepresentation and manipulation.   These actions are a clear indication of interest imbalance.  

Value Contribution-Recognition CorrelationsTM looks closely at the correlations between value creation and delivery and the recognition and prioritization of those resources and investments.  Employee compensation including executive compensation is evaluated in terms of its contribution to value.  Operational investments, expenses, and initiatives are all viewed through the value lense.  Companies that most closely align resources, investments, expenses, and initiatives with client value will outperform their competition. 

Ownership and Investment for ValueTM recent years have led to a significant over emphasis and orientation towards ownership outcomes vs. work or customer value performance.  Corporate consolidation, regulatory and ad

Measure for ValueTM provides a comprehensive measurement framework for understanding and leveraging business decisions in the context of value.  Evaluating decisions and actions, both strategic and tactical, primarily through the lens of value allows organizations to accelerate delivery of meaningful customer outcomes and shareholder performance sustainably with much less risk of catastrophic performance failure.  Many companies strategically scope the performance measurement and metrics to misrepresent and manipulate the value of a relationship or transactional interaction.  

Automate for ValueTM is a differentiated approach to company’s automation initiatives.  Like many of the root causes that create barriers to achieve sustainable performance; technology application and automation initiatives are plagued with an over orientation to cost out prioritization, replacing workers, standardizing interactions, containing and controlling customers rather than providing improved value to customers and enable employees to have richer more impactful interactions with clients.  There is tremendous promise in the application of automated analytics, but if those platforms are missioned similarly to other technology trends; promise won’t be delivered.  Analyzing how to take advantage of customers and misrepresent a company’s participation vs. analyzing ways to improve the outcomes your customers achieve as a result of a relationship with your company.

Finance and Accounting for ValueTM Finance and accounting gimmickry has been one of the most influential factors in support of Bad Business Practices.  Legislation and Agency enforcement has been unable to control it.  Sarbanes Oxley was supposed to have closed many of the loop holes that led to the accounting scandals in the 90’s.  And yet without enforcement and further refinement the regulatory framework it was incapable of protecting investors, customers, employees, and citizens from the abuses of speculative extraction oriented corporate leadership.  Repo 105,  transactions.  Witness the impact of erroneous analyst ratings similar to the ones authored during the dotcom bubble.  Environment  

Source for ValueTM is a transition in core sourcing practices leading to improved customer value and outcomes.  The emphasis on taking cost out of supply chains in recent years has had a devastating impact on the value companies provide and in many cases has led to catastrophic operational performance events.  Sourcing has been extremely focused on avoiding regulations and finding the least expensive materials and approaches to producing and delivering their products and services.  This myopic view has driven significant performance failures negatively impacting brand, operations, market share, and share price.  Ultimately these practices end up costing much more than they saved.  Balance in perspective with a prioritized orientation towards quality and customer value impact will ensure sourcing decisions provide optimal value.  Source for ValueTM delivers such a framework.

Contract for ValueTM provides an approach for improving contracting policies and processes to enhance contracting’s role in value creation, delivery, and innovation.  Contracting for value prioritizes improving the impact of contracting on driving customer value and resource contribution value correlation.  Contracting improvements are made internally with human resources including executive management employment contracts as well as externally with partners and customers.  In all cases value impact is central to the application of these guidelines and techniques.  

In addition to the Align for ValueTM Methodology, Exponential Potential applies market leading industry methods and tools for analysis, implementation, and operational engagements.  The combination of Align for ValueTM and traditional methodologies maximize impact and minimize the cultural resistance to transformation.  Quality, effectiveness, total cost, impact, delivered outcomes, loyalty, and advocacy are consistent priorities.  Once those priorities are realized then attention is turned to efficiency, cost, and price in context, and resource utilization.  As a result of Align for ValueTM organizations are able to understand and manage the migration of the value of their offerings and enterprises to ensure misalignment doesn’t cause catastrophic performance events or even extinction.  Organizations can move away from the deceptive practices of misrepresentation, manipulation, exploitation, and extraction to providing meaningful and sustainable business outcomes to their clients, shareholders, employees, and to broader stakeholders.