Deloitte Enterprise Value MapTM (Practical paths to increase shareholder value) It’s easy to say shareholder value is important. Not so easy to make it influence the decisions that are made every day: where to spend time and resources, how best to get things done, and, ultimately, how to win in the competitive marketplace. This Map is designed to accelerate the connection between actions you can take and shareholder value. It is not rocket science and it is not complete, but it can jump-start the process of focusing on the things that matter most and then choosing practical ways to get them done. Here are two simple ways to use it: Start at the top. Working your way down, at each step ask yourself, How will we improve this? This will help ensure that your tactics support your objectives. Start at the bottom. Working your way up, at each step ask yourself, Why are we doing this? This will help ensure that every tactic leads to shareholder value. Operating Margin Revenue Growth Asset Efficiency (after taxes) Expectations How Value is Created (Value Drivers) Volume Acquire New Customers Selling, General & Administrative (SG&A) Price Realization Retain and Grow Current Customers Leverage IncomeGenerating Assets Strengthen Pricing Cost of Goods Sold (COGS) Improve Improve Improve Improve Customer Interaction Efficiency Corporate/Shared Services Development & Production Efficiency Efficiency Logistics & Service Provision Efficiency What You Can Do Income Taxes Property, Plant & Equipment (PP&E) Inventory Receivables & Payables Company Strengths Improve Improve Improve Improve Improve Income Tax PP&E Inventory Receivables & Payables Efficiency Efficiency Efficiency Efficiency Management & Governance Effectiveness External Factors Improve Execution Capabilities (Improvement Levers: Business Processes, Assets and Organizational Capabilities) Change What You Do - What you provide Whom you target and serve How you compete Where you deploy resources Which operations you outsource Marketing & Sales Product & Service Innovation Account Management Cross-Sell/ Up-Sell Retention Increase focus on high-value/highpotential customers Broaden product and service offerings Increase focus on high-value/highpotential customers Increase focus on high-value/highpotential customers Increase focus on high-value /highpotential customers Increase focus on most profitable products and services Increase focus on R&D, product innovation, and product leadership Rationalize customer portfolio Increase focus on most profitable products and services Increase emphasis on customer retention Increase focus on most effective sales and advertising channels Increase emphasis on design for configurability/ customization Increase emphasis on account/relationship development Increase focus on most effective sales and advertising channels Create barriers to switching Target new geographies Improve platform and portfolio strategies for products and services Improve account management strategies Increase focus on expansion of customer relationships Refocus and/or refine retention priorities and strategies Target new segments within current geographies Increase emphasis on time-to-market and time-to-productionvolume Expand sales and advertising channels Increase number and quality of product and service launches Strengthen governance approaches Align resources with strategies Improve business processes Hone strategic capabilities Manage tax impacts and opportunities Improve control / reduce risk Collaborate more effectively Satisfy customers, employees and other stakeholders BUSINESS PROCESS GROUPINGS Business Strategy and Management (Business and Financial Strategy, Mergers and Acquisitions, Tax Management, Risk Management, Compliance Management, Program Management and Performance Management) Customer Strategy, Relationships and Interactions (Marketing, Sales, Delivery/Provisioning, Billing and Service) Product Strategy, Development and Production (Innovation and Design, Supply Chain Management, Production Operations and Logistics) Human Capital Strategy and Management (Recruitment, Development, Administration and Performance Management) IT Strategy and Management (Design, Development, Deployment, Operations and Performance Management) All Process Groupings Rationalize targeted customer segments Rationalize targeted markets and customer segments Rationalize and/or refocus product and service portfolios Differentiate treatment of customers/ segments Increase focus on developing and protecting intellectual capital Increase emphasis on differentiated products and services Increase emphasis on differentiated pricing across customer segments Rationalize and/or refocus product and service portfolios Rationalize and/or refocus product and service portfolios Improve focus on segments with lower average cost-to-serve Increase use of lowercost delivery/ installation channels Increase focus on divestiture and reinvestment Improve focus on price-insensitive customer segments Increase focus on pricing effectiveness/ price optimization Rationalize and/or refocus channel/ media usage Increase use of lowercost sales channels (telesales, outlets, selfservice, etc.) Differentiate service treatment of customers/segments Convert free services to fee-based services Improve focus on higher-value segments Improve focus on higher-value customers/segments Consolidate or outsource service and support operations Increase focus on product innovation Improve collaboration with design, development and production partners Improve understanding of customer needs Improve effectiveness of marketing, advertising and sales processes Improve reuse of product and service components Increase time spent selling Acquire new product and service offerings Tailor marketing and sales approaches to customer segments Improve investment returns on cash/ treasury funds Improve identification of cross-sell/up-sell opportunities Improve understanding of churn/defection drivers License or sell intellectual capital to other enterprises Improve understanding of current customer satisfaction Implement proactive and reactive crosssell and up-sell campaigns Improve identification of churn/defection candidates Sell appreciated assets Improve responsiveness to customer complaints/ feedback Improve cross-sell and up-sell approaches/models Improve adherence to contracts and agreements Develop, spin-off and sell new businesses Improve product/ service R&D and deployment capabilities Proactively manage transition points Improve effectiveness of cross-sell/up-sell processes Improve retention and win-back processes Improve access to information and analytical tools Adapt current products and services for new segments/ channels Improve tracking of customer interactions Improve quality and assignment of sales leads Pursue joint-venture, partnership and OEM arrangements Maintain competitive functionality and value Improve brand strength and good will Improve management of product lifecycles Tailor products and services to new customer segments (life events, ends of contracts and leases, etc.) (purchasing, fulfillment, usage, support, service, etc.) Increase use of promotions (production capacity, service capacity, etc.) Real Estate Implement integrated applications across organizational boundaries Consolidate company real estate/facilities Consolidate or outsource recruitment functions Rationalize IT application portfolio Consolidate or outsource design and development functions Consolidate IT, telecom and network equipment and facilities Consolidate or outsource design, development and deployment services (self-service, partners, etc.) Increase use of lowercost billing channels (automated, self-service, etc.) Consolidate or outsource order fulfillment functions (pick, pack and ship, install, provision, etc.) Consolidate or outsource billing operations Consolidate or outsource operations and maintenance services Improve focus on higher-value advertising channels/ media Bypass current channels / Sell directly to customers Design products for ease-of-use / selfservice Improve emphasis on design for packing/ shipping efficiency Consolidate or outsource end-user support Improve relationship/account development processes Improve service and support processes (licenses, distributorships, etc.) Improve understanding of product/service value to customers Provide staff with better market and customer information Improve processes for generating, qualifying and assigning leads Align advertising with pricing strategies Increase use of differential pricing mechanisms (based on Improve analytical processes and tools Improve communication and coordination with distribution centers Improve tailoring of offerings to customer needs Provide staff with better competitive information Improve communication and coordination with sales channels Align product and service prices with value to customers Improve definition of product and service specification Improve demand forecasting Improve structuring and pricing of promotions Improve tailoring of marketing and advertising approaches to customer segments Procurement Business Management Financial Management Product Development Manage procurement on a national/global basis Consolidate and/or align business planning, management and reporting functions Consolidate and/or align financial planning, management and reporting functions Rationalize and/or refocus product and service portfolios Rationalize and/or refocus product portfolio Consolidate or outsource learning and development functions Consolidate or outsource procurement functions Improve alignment of business unit strategies with enterprise strategies Consolidate and/or align financial accounting and analysis functions Increase emphasis on modular, extensible, scalable designs Consolidate or outsource improvement and deployment Consolidate or outsource benefits administration functions Refine vendor strategies Improve alignment of organization structures and governance models with business strategies Improve alignment of financial strategies with corporate strategies Consolidate or outsource property management functions Consolidate or outsource payroll functions Rationalize/ consolidate vendor portfolio Improve alignment of capital budgets and program plans with business priorities Strengthen enterprise-wide financial reporting standards (Excluding Production Materials & Merchandise) Increase use of lowercost real estate and facilities / Relocate business operations Improve focus on employee retention Outsource property tax administration activities Develop/integrate global HR practices (compliance, assessment, negotiations, etc.) (internal/external, onshore/ offshore, etc.) Standardize product catalogs (equipment, office supplies, promotional materials, etc.) Align M&A strategies with business objectives Increase use of lowercost channels (self-service, etc.) Integrate tax opportunities and issues into business planning processes Develop business models with low real estate requirements Consolidate or outsource product development functions Rationalize/ consolidate vendor portfolio Increase emphasis on design for production efficiency Refine/align logistics and distribution strategies Manage purchasing on a national/global basis Improve focus on higher-value customer relationships Maximize tax benefits associated with major business decisions Reduce number of data centers, branch offices, dealerships, retail outlets, etc. Increase use of lowercost product development channels Increase focus on materials-efficient production mechanisms Consolidate or outsource production functions Increase focus on higher-value products and partners Consolidate or outsource merchandising functions Increase emphasis on designing for service efficiency and selfservice Increase focus on component reuse Increase quality and consistency of materials Increase use of lowercost logistics and distribution channels Rationalize/ consolidate vendor portfolio Consolidate or outsource service operations Utilize tax-effective corporate structures for ownership/licensing of intangible assets (patents, trade Improve ordering and receipt processes Increase focus on stakeholder relationships Increase focus on business agility and flexibility Increase focus on strategic assets Improve communication between the board, management, shareholders and the public Improve alignment of customer, product, advertising, sales, service, support, and fulfillment strategies Establish program/ project delivery as a key competency Improve effectiveness of organizational structures Establish process improvement and innovation as key competencies Establish cross-company collaboration as a key competency Improve identification of stakeholder groups and establishment of priorities Establish agility and flexibility as key competencies Establish development of strategic assets as a key competency Increase focus on vendors with favorable payment terms Strengthen and communicate mission, vision, values and ethics Increase emphasis on risk-informed, scenario-based planning Increase emphasis on continuous, proactive management of investment portfolios Increase focus on managerial, forwardlooking information Improve effectiveness of organizational structures and governance models Increase proactive pursuit of partnerships, mergers and acquisitions Establish management of key stakeholder relationships as organizational priority Establish product, service and process innovation as key competencies Increase emphasis on leveraging strategic assets Rationalize/ consolidate vendor portfolio Build values and ethics into corporate culture Improve integration of short- and long-term business planning Improve effectiveness of program/project governance models Increase focus on key performance metrics Increase emphasis on cross-business-unit and cross-company collaboration Increase emphasis on operational integration with partners Improve relationship management strategies for key stakeholder groups Improve agility and flexibility of organizational structures Utilize tax-effective corporate structures for ownership/licensing of intangible assets (patents, trade Outsource business functions Develop low-Inventory business models Increase emphasis on designing for manufacturing efficiency Coordinate management of credit/receivables across business units Coordinate management of payables across business units Consolidate IT systems, production lines and service mechanisms Rationalize and/or refocus customer segments and distribution channels Increase emphasis on use of common components Improve management of credit risk across business units Increase emphasis on high-turn products Increase emphasis on designing for materials efficiency Increase focus on customer segments with low credit/loan needs (composition, selection, roles, etc.) Improve identification and prediction of industry and market trends Improve structuring and launch of cohesive program portfolios Improve determination of key performance metrics and targets Improve assessment and benchmarking of business process performance Improve ability to identify and assess partnering opportunities Increase utilization of standardized components Differentiate credit treatment of customers/segments Improve management of debt portfolio Align internal audit practices with business and risk objectives Improve strategy development capabilities at corporate and business-unit levels Structure programs/ projects to deliver benefits progressively Improve analysis of managerial information Increase integration of business processes across organizational boundaries Improve capacity planning processes, skills and tools Improve design/ structure of distribution networks Provide staff with better information and tools Improve utilization of service staff Utilize international financing opportunities to minimize aftertax borrowing costs Improve terms on property and facilities Improve quality and consistency of manufacturing materials Rationalize production quantities and timing Shorten production cycles Improve and standardize credit assessment processes Improve alignment of A/P systems and processes with daysoutstanding strategy Implement/enhance anonymous employee reporting and feedback mechanisms Improve development and analysis of business cases Improve coordination and communication across programs and projects Improve focus on most important managerial information Improve demand forecasting processes, skills and tools Improve demand forecasting processes, skills and tools Rationalize production quantities and timing Improve demand forecasting processes, skills and tools Provide staff with better customer information Improve management of transfer pricing Divest low-utilization real estate Increase use of leased production equipment Rationalize merchandise order quantities and timing Rationalize production quantities and timing Improve management of delinquent accounts Improve coordination of payments across business units Improve understanding of regulatory requirements Improve communication of strategic directions and priorities Improve accountability/ authority of program and project resources Focus efforts on higher-value vendor relationships Rationalize production quantities and timing Rationalize merchandise order quantities and timing Rationalize order quantities and timing Provide staff with better product, service and contract information Optimize accounting methods and selection of accounting periods Increase use of leased infrastructure Increase utilization of production equipment Divest low-demand/ obsolete inventory Divest obsolete materials Improve collections processes Improve assessment and benchmarking of A/P performance Improve monitoring and management of regulatory compliance Improve alignment of budgets and capital programs with strategic priorities Reduce procurement cycle times Improve coordination with business partners Align production and merchandise ordering schedules with distribution schedules Improve assignment of transactions to appropriate staff Differentiate treatment of customers/ segments Improve terms on materials purchases Shorten production cycles Provide staff with better information and tools Improve use of national/global purchasing power Route low-value transactions to lowercost sales channels Optimize depreciation methods/lives for property, plant and equipment Improve terms with service providers Improve utilization of production channels / Reduce downtime Improve demand forecasting processes, skills and tools Increase use of vendor-managed/ vendor-warehoused inventory Improve routing of service requests to appropriate service channels Ensure full utilization of tax carryforwards Improve skills of inventory and distribution staff Improve skills of merchandising staff Improve skills of service staff Improve staff incentives around service efficiency Improve audit and compliance management processes Improve prototyping, piloting and testing processes Provide staff with better product information and tools Improve program management processes Improve business case development and analysis processes Improve product and service introduction/ launch processes Improve assignment of procurement transactions to appropriate staff Improve accounting and measurement processes Improve tax management processes Improve utilization of product development channels Increase focus on higher-value vendor partnerships Improve business performance reporting processes Improve asset management processes Improve collaboration with partners and customers License or acquire products and intellectual property Improve skills of product development staff Provide staff with better product, service and competitive information Provide staff with better product and service information Improve policies and processes around merchandise returns Improve dispatch, diagnostic, resolution and replacement processes Increase utilization of real estate Improve employee retention programs Improve product and service launch processes Consolidate/realign sales territories Route low-value transactions to lowercost sales channels Provide staff with better customer and order information Improve technology and data risk management processes Improve terms with service providers (equipment, supplies, etc.) (travel, contract labor, etc.) (negotiation, execution and compliance) Improve product and service withdrawal and retirement processes Improve sales forecasting and campaign execution processes and tools Improve routing of service requests to appropriate staff Improve forecasting, planning and prioritization skills and tools Increase utilization of IT, telecom and network resources Improve terms on purchased and leased real estate, furniture and fixtures Improve capacity/ demand planning processes and tools Improve collaboration with vendors Improve/standardize M&A processes Improve budgeting and forecasting capabilities Evolve product and service features, functionality and value Improve quality assurance programs Implement pricing and affinity programs based on volume and breadth Proactively manage transition points (life events, ends of contracts and leases, etc.) Improve ability to utilize offshore cash/ assets and move between geographies Shorten time-tomarket Improve price/margin knowledge of staff Improve campaign design and management processes and tools Improve terms with sales channels Increase use of lowercost service and information channels Improve due-date reliability Consolidate device management information and tools Improve terms on improvements Implement/improve company-wide processes and tools for assessing staff performance Improve terms on equipment and supplies Improve compliance management processes Improve financial reporting efficiency Shorten order-todelivery cycle time / Improve product and service availability Remove barriers to switching Improve account management skills of staff Improve brand strength and good will Implement affinity programs Utilize tax opportunities around risk management activities Improve features and functionality of products and services Improve coordination with suppliers and sales channels Improve channel management processes and tools Improve skills of sales staff Improve skills of service staff Improve skills of order management and billing staff Consolidate and/or re-architect data stores Improve real estate performance management methods and tools Improve skills of HR staff Improve terms with service providers Provide staff with better managerial information and tools Improve sales and marketing skills of staff Apply brand to new and unbranded products Improve incentives for account/relationship development Offer value-adding product and service bundles Improve brand strength and good will Improve quality and reliability of products and services Build product margins/profitability into sales incentives Improve terms with advertising channels Improve staff incentives around sales efficiency Improve incentives around service efficiency and effectiveness Improve incentives around order management efficiency Improve establishment of and adherence to servicelevel targets Consider tax incentives in location and selection of facilities Increase use of distance/on-line learning Utilize national/global purchasing power Improve skills of business management staff Improve alignment of staff incentives with strategic objectives Improve product- and service-innovation skills of staff Improve account management methods and tools Shorten order-todelivery cycle time / Improve product and service availability Establish customer communities Improve methods and tools for managing demand/supply performance Improve methods and tools for managing pricing performance Improve skills of marketing staff Improve terms with service providers Improve terms with service providers Improve terms with service providers Improve technical and project management skills of staff Ensure proper valuation of property for tax purposes Reduce salary and benefits costs / Improve value of employee benefits Increase use of vendor-managed/ vendor-warehoused inventory Acquire companies with relationships in targeted customer segments Improve incentives for product development and innovation Improve contracting and negotiation skills of procurement staff Acquire companies in targeted geographies Acquire companies aligned with product strategies Improve staff incentives for crossselling/up-selling Build customer satisfaction and retention into staff incentives Improve methods and tools for managing innovation performance Improve sales performance management methods and tools Improve retention performance management methods and tools (credits, exemptions, etc.) Strengthen and communicate governance policies and procedures Improve logistics/ distribution efficiency Provide staff with better product and service information (utilization, performance, capacity planning, etc.) Increase focus on business continuity planning Improve effectiveness of plant maintenance Improve performance assessment processes Improve/consolidate IT performance management methods and tools Increase focus on risk management and regulatory compliance Increase use of leased real estate Improve capacity/ demand planning processes and tools Improve order management methods and tools Increase focus on realization of targeted business benefits Improve ability to utilize offshore cash/ assets and move between geographies Improve end-user support and administration processes GST, etc.) Increase consideration of M&A and divestiture options Improve capacity/ demand planning processes, skills and tools Provide staff with better production information and tools Improve invoicing/ billing processes network equipment, leased lines, etc.) Increase emphasis on risk identification and management Improve agility and flexibility of governance models Improve coordination with vendors Rationalize order quantities and timing Provide staff with better customer information Improve terms on purchased and leased assets (PCs, servers, Increase emphasis on quality management and benchmarking Improve transport and delivery processes/ algorithms Improve design and development processes Provide staff with better customer information Improve tracking and recovery of indirect taxes (sales/use, VAT, Increase emphasis on people/talent development Improve ability to structure and implement durable, mutually beneficial partnerships Improve capital budgeting processes (contractors, network services, consultants, etc.) Increase focus on project quality and risk management Increase focus on post-merger synergy and cost reduction programs Improve demand planning processes and tools Improve terms with service providers Improve alignment of HR and technology strategies with business strategies Improve measurement and reporting of operational and financial performance Improve payroll processes Improve tax collection and remittance processes Manage materials sourcing on a national/global basis Improve focus on internal controls and regulatory compliance Improve alignment of projects with program and business objectives Improve operational processes Improve incentives around IT/network efficiency Increase focus on creditworthy customer segments Improve identification of opportunities and threats Improve processes for managing system operations, maintenance and changes (HVAC, cabling, etc.) Increase emphasis on preventive equipment maintenance Rationalize raw materials Improve/implement internal control frameworks and policies Improve provisioning/ installation processes (servers, routers, network capacity, etc.) Increase emphasis on build-to-order Leverage breadth of vendor relationships to lengthen payment cycles Improve utilization of service staff (security, energy, etc.) Increase emphasis on design for manufacturability and service Improve customer incentives for accelerated/on-time payment Improve utilization of sales staff (administration, security, energy, HVAC and maintenance) Outsource business functions Improve collaboration with vendors/partners Improve financial risk management processes Improve sales performance management methods and tools Increase focus on partnership, merger and acquisition opportunities Strengthen corporate governance structures Improve collaboration with vendors/partners Improve operational risk management processes Improve marketing and advertising performance management methods and tools Establish a culture centered on operational excellence Refine daysoutstanding strategy Increase use of flexible/expandable production equipment Improve contract management processes (sales/use, VAT, GST, etc.) Strategic Assets Increase emphasis on continuous, proactive performance management Refine credit/daysreceivable strategy Increase use of flexible facilities Improve salary and benefits administration processes / Increase employee self-service (researchers, information services, advertising channels, etc.) Agility & Flexibility Increase emphasis on enterprise-wide program planning and collaborative program delivery Rationalize and/or refocus product portfolio Improve accuracy and timeliness of tax provision and cash outflow forecasts Improve retrieval processes Improve real estate improvement and deployment processes Improve service and support performance management methods and tools Relationship Strength Improve workforce planning, dispatch and assignment processes and tools Improve manufacturing and quality control processes Improve installation/ deployment processes Improve management of trade/indirect taxes Partnership & Collaboration Improve focus on higher-value vendor relationships Improve materials efficiency of production processes Improve pick, pack and ship processes Improve terms with service providers Operational Excellence Tighten credit/loan terms Improve capacity/ demand planning processes, skills and tools (computers, vehicles, etc.) Business Performance Management Improve demand forecasting Improve field sales and telesales processes (computers, vehicles, etc.) Program Delivery Improve demand forecasting Improve product conception/initiation processes (computers, vehicles, etc.) Business Planning Improve coordination of operational, investment, financial, M&A, and tax strategies across business units Rationalize and/or refocus product portfolio Defer/change timing of capital investments Governance Improve service and support processes Improve debt and equity management processes Improve terms on leased assets Accounts, Notes & Interest Payable Leverage credit rating to lengthen payment cycles and reduce interest rates Improve program planning processes Improve terms on leased service assets Accounts, Notes & Interest Receivable Utilize more efficient production equipment Improve merchandise ordering and receipt processes Improve service procurement processes Improve terms on leased sales assets Work in Process & Raw Materials Reconfigure facilities / Increase utilization of facilities Improve inventory receipt and storage processes Improve training processes Improve staff incentives around marketing efficiency Rationalize production facilities Finished Goods Improve focus of tax function/department on proactive tax planning Improve production scheduling and staging processes Improve real estate selection, acquisition and contracting processes (delivery services, outsourced functions, etc.) Accelerate or defer income/expenses Migrate income to low-tax jurisdictions Improve selection, acquisition and contracting processes (network services, outsourced functions, etc.) (M&A, consolidation, outsourcing, site selection, etc.) Increase use of cheaper service channels Improve credit analysis processes (network services, airlines, information services, etc.) Rationalize and/or refocus product and service portfolios Refine vendor/ supplier strategies Improve workforce planning and dispatch processes and tools (contact centers, automated voice response, web, etc.) Equipment & Systems Consolidate/ outsource logistics and distribution functions (raw materials, intermediate materials, finished components, etc.) (profiles, transaction histories, etc.) Real Estate & Infrastructure Increase use of lowercost production channels Improve identification and discontinuation of unsuccessful efforts (demographics, inquiry history, etc.) Merchandising Income Tax Management Design products to use cost-effective materials Improve cash/treasury management practices Improve execution of market- and supplydriven promotions Improve profitability of R&D efforts through utilization of tax and economic development incentives (central vs. local merchandising, etc.) Increase emphasis on service prevention / Reduce need for service Improve strategic planning processes Improve product and service lifecycle management Improve methods and tools for managing sales and marketing performance Refine and/or align merchandising strategies Improve product procurement processes Divest non-performing and non-strategic business units Improve customer service and retention skills of staff Improve focus on higher-value products Increase emphasis on designing and packaging for distribution Improve recruitment and orientation processes Offer value-adding product and service bundles Improve crossselling/up-selling skills of staff Increase emphasis on designing for materials efficiency Improve real estate design and development processes Tailor cross-sell/upsell offers to customer needs Defer and reduce federal, state and local quarterly estimated tax payments Rationalize and/or refocus product and service portfolios Improve design, development and testing processes Improve responsiveness to customer requests and inquiries (hedging transactions, commodities trading, etc.) Increase emphasis on permanently lowering the company's effective tax rate Materials Service Delivery names, IP, etc.) Improve use of supply- and capacitydriven promotions (launch through retirement) Rationalize and/or refocus services offered Rationalize and/or realign product development efforts Improve understanding of business unit performance and market values (razors v. blades / product v. shipping charges, etc.) Rationalize and/or refocus product portfolio Increase focus on business insight and forward-looking information Improve competitiveness of product and service offerings Coordinate pricing of complementary products and services Rationalize and/or refocus product portfolio Improve focus on higher-value customer segments and products Improve visibility of customer relationships and interactions across all channels (purchases, support requests, etc.) Rationalize and/or refocus product portfolio Rationalize portfolio of financial services providers Solicit and respond to customer feedback Improve managerial methods and tools Production Logistics & Distribution Increase use of vendor-managed/ vendor-warehoused inventory Improve utilization of telecom tax incentives © 2004. All rights reserved. Confidential. 0104 Human Resources names, IP, etc.) Improve emphasis on product quality and ease of service Improve understanding of customer, product and channel profitability Obtain exclusive agreements with partners IT, Telecom & Networking Focus sales efforts on higher-margin products and services Improve understanding of customer price sensitivity Improve brand awareness / Elevate brand image Order Fulfillment & Billing Increase focus on higher-value products and services customer value, risk, etc.) Sell or lease excess capacity to other enterprises Sales Customer Service & Support Improve understanding of customer needs (Action may apply to all processes) Note: Many actions could logically be associated with other or multiple process groupings. For example, many customer and product actions are likely to have heavy IT and HR components. Acquire competitors Rationalize and/or refocus product and service portfolios Improve identification of valuable customer relationships Other Shared / Corporate Services (Real Estate, Procurement and Other) Increase emphasis on generating revenue from company assets (production, distribution and sales pipelines) Improve total customer experience Improve value / Decrease prices - Marketing & Advertising Increase emphasis on supply chain management Tailor account management approaches to customer segments (purchasing, fulfillment, usage, support, service, etc.) Do What You Do Better Price Optimization Increase emphasis on customer satisfaction Increase utilization of modular, reusable designs Improve total customer experience Demand & Supply Management Cash/Asset Management Provide staff with better HR information and tools Improve terms with third-party product and service providers (payroll, benefits, training, etc) Improve management of international staff costs (immigration, payroll, staff support, international equity, etc.) Manage payroll tax impacts of business initiatives (M&A, consolidation, restructuring, relocation etc.) (equipment maintenance, delivery, warehousing, etc.) (direct and indirect tax management) (fixed and variable assets) Improve breadth, depth and quality of financial information Improve incentives around product development efficiency Improve collaboration with vendors Improve incentives around production efficiency Improve cost accounting and allocation of shared/ overhead costs Improve definition of product and service specifications Increase use of vendor-managed/ vendor-warehoused inventory Improve skills of production staff Improve incentives around inventory/ distribution efficiency Improve incentives around merchandising efficiency Improve incentives around business planning efficiency Improve ability to utilize offshore cash/ assets and move between geographies Improve product development performance management methods and tools Improve contracting and negotiation skills of purchasing staff Improve terms on equipment purchases Improve terms with service providers Improve terms with service providers Improve terms with service providers Improve skills of financial management staff Improve profitability of R&D efforts through utilization of tax and economic development incentives Improve incentives around procurement efficiency Improve terms with service providers Improve materials performance management methods and tools Improve management of transfer pricing (information services, consultants, etc.) (asset, budget, price/cost, treasury, debtor/creditor, performance, tax, risk, etc.) Improve incentives around procurement efficiency Improve incentives around financial management efficiency Optimize utilization of available sales/use tax exemptions Improve terms with financial services providers Utilize available federal, state and local employment/ training incentives Improve management of indirect taxes Improve HR performance management methods and tools Improve procurement performance management methods and tools (sales/use, VAT, customs duties, etc.) (delivery, warehousing, etc.) (outsourced functions, etc.) (transport, warehousing, etc.) Improve logistics performance management methods and tools (profiles, transaction histories, etc.) Improve terms with service providers (LIFO, FIFO, uniform capitalization, shrinkage, obsolescence, etc.) (credits, net operating losses, capital losses, etc.) Consider tax implications in the location/ selection of facilities (distribution centers, service centers, branches, etc.) Build tax opportunities into real estate transactions (income deferral, location credits and incentives, leasing terms, etc.) (delivery, warehousing, etc.) (outsourced services, network services, information services, etc.) Improve consideration of tax implications in the acquisition and disposition of assets Improve terms on merchandise purchases Improve terms on leased service assets Optimize tax benefits associated with selfconstructed assets Improve management of trade and indirect taxes (sales/use , VAT, Improve management of transfer pricing Improve merchandising performance management methods and tools Improve service performance management methods and tools (computers, vehicles, etc.) GST, etc.) Improve production performance management methods and tools Optimize valuation and costing methods for inventories (plant, facilities, internallyused software, etc.) Optimize expense vs. capitalization of costs (M&A costs, R&D costs, etc.) Improve tax benefits of compensation and benefit programs (deferred and equity-based comp; retirement and healthcare benefits, etc.) Improve identification and application of R&D tax incentives Ensure adequate documentation of significant tax positions (earnings & profits, transfer pricing, tax opinions, etc.) Increase use of flexible and expandable infrastructure Improve understanding of stakeholder interests (customers, Improve flexibility of business processes Develop and leverage strong/unique partner relationships Improve identification of opportunities to increase value to stakeholders Improve communication and knowledge transfer across organizational boundaries Develop and utilize unique physical resources Improve ability to integrate merged and acquired organizations Improve communication with stakeholder groups Improve agility and flexibility of partner organizations and networks Develop and utilize unique human resources Improve identification and mitigation of operational risk (people, process, technology, data, etc.) Improve understanding of partner strengths, weaknesses and interests Improve value delivered to customers Improve product innovation processes Develop and leverage political relationships and alliances Improve communication around improvement priorities Improve business continuity planning and disaster recovery capabilities Improve integration of business processes across partner networks Improve value delivered to shareholders Improve flexibility and versatility of IT systems and platforms Develop and cultivate good will Improve program/ project management methods and tools Improve ability to launch improvement efforts Improve management of regulatory compliance Improve quality and speed of communication with partners Improve value delivered to employees Improve breadth, depth, quality and timeliness of business planning information Develop and utilize unique information resources (customer, product, market, etc.) Improve understanding of internal value and market value of business units Improve tracking and communication of program/project progress Improve assignment of accountability and authority Improve physical security of people Improve management of partner relationships Improve versatility of managers and staff Develop and leverage strong brand Improve quality and consistency of performance assessment methods Improve sharing of knowledge across organizational boundaries Improve sharing of knowledge across organizational boundaries Improve value delivered to other stakeholders Improve product, service and process innovation skills of staff Develop strong customer relationships and communities Improve monitoring and management of risk and compliance Improve performance and reliability of IT systems/platforms Improve integration of IT systems across partner networks Improve conversion of strong relationships into sources of competitive advantage Develop and leverage intellectual capital Improve quality of information provided to stakeholders Develop and utilize unique production resources shareholders, regulators, employees, suppliers, partners, alumni, etc.) (facilities, land, etc.) (thought leaders, managers, subject matter experts, etc.) Increase use of justin-time procurement Improve management of credit/loan portfolio Improve identification and assessment of risk (strategic, operational, Improve assessment and benchmarking of credit/receivables performance Improve risk planning, mitigation and control approaches Improve identification, assessment and execution of M&A/divestiture opportunities Improve assignment of resources to projects Improve companywide monitoring and management of risks Improve ability to develop and spin-off new businesses Improve involvement of operational staff in project delivery Improve maintenance of IT systems Improve breadth, depth, quality and timeliness of managerial information Improve focus of company resources on high-priority initiatives Improve identification and management of program/project risks Increase accountability of business unit leaders for tax impact of decisions Improve breadth, depth, quality and timeliness of business information Increase utilization of IT systems Ensure tax planning activities and tax filings comply with regulatory environment Improve anticipation and understanding of current and potential regulations/legislation Dynamically cancel or redirect ineffective/ obsolete programs and projects Improve benchmarking of global effective tax rate against industry peer group Improve access to and distribution of business information Improve effectiveness of legislative/lobbying efforts Improve management of vendors/service providers Improve breadth, depth, quality and timeliness of performance information Improve security of applications, systems and data Improve asset development skills of management and staff Improve incorporation of risk analysis in business planning (internal and external risk) Continuously track and manage the realization of project benefits Improve access to and distribution of performance information Improve process innovation skills of staff Improve incentives around asset development Integrate tax opportunities and issues into business planning processes Improve management of organizational change in support of initiatives Improve career options and paths Improve depth and breadth of staff technical skills Develop and utilize unique tax expertise Improve leadership and management skills of executives Improve program/ project management skills of staff Align management and staff incentives with company performance Improve recruiting effectiveness Improve executive development, recruiting and succession planning Improve vendor management skills of staff Improve monetary and non-monetary recognition of staff contributions Improve mechanisms for collecting and implementing employee ideas Improve talent management models and programs Build innovation and improvement into rewards and incentives Divest low-utilization equipment Improve terms on merchandise Improve terms on infrastructure Utilize more efficient IT systems Consolidate inventory Improve terms on materials Divest low-utilization infrastructure Utilize more flexible/expandable IT systems Increase use of vendor-managed/ vendor-warehoused inventory Increase use of vendor-managed/ vendor-warehoused inventory Divest low-utilization IT systems Improve terms on production equipment Improve terms on IT systems investment, financial, compliance, data/privacy, etc.) Clarify governance roles and responsibilities (delegation of authority, segregation of duties, etc.) Strengthen training/ education of board and audit committees Align compensation and incentive systems with strategies, values and ethics (strategic, operational and financial risks; regulatory and tax compliance) (applications, equipment, networks, etc.) Improve partnership and collaboration skills of staff Improve value delivered to partners (vendors, channel partners, etc.) (public, alumni, analysts, etc.) (copyrights, patents, trademarks, etc.) (accuracy, timeliness, transparency & predictability) (methods, equipment, facilities, etc.) Improve mechanisms for soliciting and addressing stakeholder feedback Develop and utilize unique IT resources (applications, networks, etc.)
