Value Analysis



Engineering Future Value

Making a profit isn’t easy. In fact, just 6% of the S&P 500 made 50% of the U.S. profits last year. Financial engineering, cost cutting and process improvement are part of the picture. But experience is clear – you can’t shrink your way to success. Sustaining profitable growth requires a parallel focus on leveraging existing capabilities and at the same time innovating for the future.

Is your company structured for sustainable value creation? There are ‘two organizations’ that need to be managed:

  • The ‘core’ needs to be designed to enable scale and operational efficiency, as measured by current value (CV), a financial measure of how well capital and people are being deployed today.
  • Equally important, there needs to be an adaptable ‘growth engine’ that is structured to enable innovation and flexibility. This is measured by future value (FV), the likelihood of growth beyond current operations and the ability to create future cash flows

At OrgMetrix our analysis process targets the drivers of CV as part of an ‘Execution Index’. And we target the distinct performance levers that drive growth [FV] in an “Innovation Index’. When designed correctly, organizational structure is a critical driver of business success, making possible:

  • Improved operational effectiveness
  • Increased speed, adaptability, and fitness of the organization
  • Enhanced capability of the company to innovate- to discover new products, services and business models