Often organizations don’t fully grasp how much Business Value exists, let alone how to unlock it.
As Debra Mervyn described in NEPA panel “Maximizing Business Value: Turning a Business into a Sellable Asset,” Business Value rests on three pillars:
- Customer Value- business reputation, competitive position, and customer loyalty.
- Financial Value- margins, cash flow, revenue, and growth.
- Operational Value- systems, processes, standard work, and workforce.
Operational Value is the foundation for Customer and Financial Value. Yet Operational Value is often overlooked or underestimated, because its elements aren’t always visible or easily measured. Operational Value takes shape through the performance and balance between systems, processes, and workforce working together, with minimal friction and associated costs.
Growth can quietly turn against a business, without a solid Operational foundation and balance. Expansion without disciplined systems and processes wears away at the value already built, trading long-term sustainability for short-term gains. Cracks and friction show up and expand. Processes grow more expensive to run; forecasts become less reliable; the customer experience is less consistent; and the business itself becomes harder to manage and scale. Sustainable growth, by contrast, comes from building the systems and discipline first, so scaling profitably results.
TMG addresses value through a full life cycle assessment and Total Value Methodology (TVM) built to optimize Customer, Financial, and Operational Value together. The assessment and costing identify and quantify value creation opportunities in terms of risk, COGS, and margin and prioritize improvements by ROI. Most organizations carry more low-hanging fruit than they realize. It is common to see double-digit percentage improvements within a year through improvements that aren’t complicated to make.
The Mervyn Group works alongside the Leadership Team to evaluate and optimize Business Value, whether the engagement is initiated for growth, transition or exit. Engagements are guided by a consistent set of principles: tactical planning in service of strategy, systematic thinking, a process-centric approach, data-driven decision making, and a steady focus on value improvement.
Contact Debra Mervyn (Debra@MervynGroup.com) to learn more.
