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Value Creation Blog

How We Reduced Strategic Planning To 3 Hours

Posted by Josh Patrick

time flies resized 600Several weeks ago we announced that we’ve licensed a new software tool that helps us analyze what a business can do to improve its enterprise value.  CoreValue has been a welcome addition to the tools we use when we’re helping business owners discover what actions you can take to improve the value of your company.

We’ve used this tool with clients and found that CoreValue took a significant amount of time out of the discovery process.  We were able to focus on important strategic areas of the business quickly.

I love what I call client-facing software.  This type of software is one that both the client and I use together.  I find that when both the client and I work on a problem at the same time, we come up with solutions much more quickly than if we use a traditional consulting approach. 

Here’s what I’ve learned so far about our new planning aid:

The owners and senior management team get to have a short, focused conversation about strategic drivers in the business.  I’ve been suggesting that our clients bring their management team into the process of reviewing the strengths and weaknesses in the company.  Everyone has the opportunity to talk about what they think the company does well and be specific about developmental areas that could add additional value.

The software helps develop an estimate of company value.  More importantly, the software helps identify the value gap that exists in the company.  For example, the value of the company might be as high as $20,000,000.  Because there are developmental areas in the company the actual computed value might be $12,000,000. 

This variance allows the team to focus on what could be done to bring the actual value closer to the potential value of the company.  Sometimes if we don’t address the larger value gaps the company could be open to downside competitive pressure.

During the CoreValue conversation we usually find a strategic focus area.  One of my frustrations is that clients always want to take on too many strategic projects at once.  I’m finding that after our CoreValue conversation management and ownership understands why focusing on one area at a time is the best way to improve company value.

The CoreValue evaluation is fast.  Instead of taking two days in a strategic planning meeting the management team spends three hours reviewing where opportunities and problems lie.  Part of my obsession with lean strategies is taking waste out of the planning process.  Reducing a planning process to three hours is something my clients and I find very attractive.

Building a mind map along with the CoreValue process helps us focus on obvious strategic opportunities.  While the conversation is going on with the CoreValue software I’m building a mind map on internal and external value drivers.  When we review the mind map we find strategic areas that needs attention jump off the page.  Using two client-facing tools (software where the client and I work together) allows us to take time out of the planning process.  Deciding what to focus on becomes easy.

I’m grateful to Chuck Richards and his team for putting together this software tool.  It’s allowing me to work more effectively and efficiently with our clients to help create additional value in their companies.

I invite you to download our whitepaper and mind map on our Objective Review process.  This is where we first use CoreValue with our clients to help set objectives and agenda’s for where company value can be improved.  To get your whitepaper, please click on the button below.

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Securities and Investment Advisory Services offered through NFP Securities, Inc. (NFPSI), Member FINRA/SIPC. Stage 2 Planning Partners and NFPSI are not affiliated.

This article is published for residents of the United States only.  Registered Representatives and Investment Adviser Representatives of NFP Securities, Inc. may only conduct business with residents of the states and jurisdictions in which they are properly registered.  Therefore, a response to a request for information may be delayed.  Not all of the products and services referenced on this site are available in every state and through every representative or advisor listed.

Topics: value creation, business relationship management, client collaboration, strategic planning

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