Optimizedepreciation

methods/livesfor
property, plant and
equipment
Optimizevaluation
andcostingmethods
for inventories
(LIFO, FIFO, uniform
capitalization, shrinkage,
obsolescence, etc.)
Ensurefull utilization
of taxcarryforwards
(credits, net operating
losses, capital losses, etc.)
Consider taximplica-
tionsinthelocation/
selectionof facilities
(distributioncenters, service
centers, branches, etc.)
Improvesales
forecastingand
campaignexecution
processesandtools
Improve
relationship/account
development
processes
Improveskillsof
salesstaff
Providestaff with
better customer
information
(demographics, inquiry
history, etc.)
Improvestaff
incentivesaround
salesefficiency
Improveprocesses
for generating,
qualifyingand
assigningleads
Improve
fieldsalesand
telesales
processes
Consolidate/realign
salesterritories
Improvetermswith
saleschannels
Improvetermswith
serviceproviders
(networkservices, airlines,
informationservices, etc.)
Improvetermson
leasedsalesassets
(computers, vehicles, etc.)
Target new
geographies
Target newsegments
withincurrent
geographies
Expandsalesand
advertisingchannels
Acquirenewproduct
andserviceofferings
Pursuejoint-venture,
partnershipandOEM
arrangements
Increasefocuson
high-value/high-
potential customers
Increasefocuson
most profitable
productsandservices
Increasefocuson
most effectivesales
andadvertising
channels
Improvebrand
strengthandgoodwill
Increasetimespent
selling
Improvequalityand
assignment of sales
leads
Improveaccessto
informationand
analytical tools
Improvesalesand
marketingskillsof
staff
Improvealignment of
staff incentiveswith
strategicobjectives
Improveeffectiveness
of marketing,
advertisingandsales
processes
Tailor marketingand
salesapproachesto
customer segments
Tailor productsand
servicestonew
customer segments
Evolveproduct and
servicefeatures,
functionalityandvalue
Improvetotal
customer experience
(purchasing, fulfillment,
usage, support, service,
etc.)
Increasefocuson
high-value/high-
potential customers
Improve
responsivenessto
customer complaints/
feedback
Improve
understandingof
customer needs
Proactivelymanage
transitionpoints
(lifeevents, endsof
contractsandleases, etc.)
Tailor account
management
approachesto
customer segments
Maintaincompetitive
functionalityandvalue
Tailor cross-sell/up-
sell offerstocustomer
needs
Implement pricingand
affinityprograms
basedonvolumeand
breadth
Offer value-adding
product andservice
bundles
Improveeffectiveness
of cross-sell/up-sell
processes
Implement proactive
andreactivecross-
sell andup-sell
campaigns
Improvestaff
incentivesfor cross-
selling/up-selling
Improveidentification
of cross-sell/up-sell
opportunities
Increasefocuson
high-value/high-
potential customers
Increasefocuson
most profitable
productsandservices
Increasefocuson
most effectivesales
andadvertising
channels
Improveretentionand
win-backprocesses
Buildcustomer
satisfactionand
retentionintostaff
incentives
Improve
understandingof
churn/defection
drivers
Improveidentification
of churn/defection
candidates
Increasefocuson
high-value/high-
potential customers
Improve
competitivenessof
product andservice
offerings
Shortentime-to-
market
Improvebrand
awareness/ Elevate
brandimage
Increaseemphasis
onsupplychain
management
(production, distributionand
salespipelines)
Obtainexclusive
agreementswith
partners
(licenses, distributorships,
etc.)
Improvefeaturesand
functionalityof
productsandservices
Improvequalityand
reliabilityof products
andservices
Improveproduct and
servicelifecycle
management
Improve
communicationand
coordinationwith
distributioncenters
Improve
communicationand
coordinationwith
saleschannels
Improvefocuson
higher-value
segments
Rationalizeand/or
refocuschannel/
mediausage
Rationalizeand/or
refocusproduct and
serviceportfolios
Rationalizetargeted
customer segments
Improvecampaign
designand
management
processesandtools
Improveskillsof
marketingstaff
Improvestaff
incentivesaround
marketingefficiency
Providestaff with
better market and
customer information
Improvedefinitionof
product andservice
specification
Improveproduct and
servicelaunch
processes
Providestaff with
better competitive
information
Improvetailoringof
marketingand
advertising
approachesto
customer segments
Improvetermswith
advertisingchannels
Improvetermswith
serviceproviders
(researchers, information
services, advertising
channels, etc.)
Improveemphasison
product qualityand
easeof service
Designproductsfor
ease-of-use/ self-
service
Routelow-value
transactionstolower-
cost saleschannels
Improveroutingof
servicerequeststo
appropriatestaff
Increaseuseof lower-
cost serviceand
informationchannels
(contact centers, automated
voiceresponse, web, etc.)
Improveworkforce
planninganddispatch
processesandtools
Improvecapacity/
demandplanning
processes, skillsand
tools
Improveserviceand
support processes
Improveskillsof
servicestaff
Providestaff with
better customer
information
(profiles, transaction
histories, etc.)
Improveincentives
aroundservice
efficiencyand
effectiveness
Improvetermswith
serviceproviders
(networkservices,
outsourcedfunctions, etc.)
Improvetermson
leasedserviceassets
(computers, vehicles, etc.)
Improveforecasting,
planningand
prioritizationskillsand
tools
Improvecredit
analysis
processes
Improveskillsof order
management and
billingstaff
Providestaff with
better customer and
order information
Improveincentives
aroundorder
management
efficiency
Improvepick, pack
andshipprocesses
Improve
provisioning/
installationprocesses
Improveinvoicing/
billingprocesses
Improvepoliciesand
processesaround
merchandisereturns
Improvetermswith
serviceproviders
(deliveryservices,
outsourcedfunctions, etc.)
Improvetermson
leasedassets
(computers, vehicles, etc.)
Consolidateand/or
re-architect data
stores
Increaseutilizationof
IT, telecomand
networkresources
(servers, routers, network
capacity, etc.)
Improvedesign,
development and
testingprocesses
Improveprocessesfor
managingsystem
operations, mainten-
anceandchanges
Improveend-user
support and
administration
processes
Improveselection,
acquisitionand
contracting
processes
Improveinstallation/
deployment
processes
Improvetechnical and
project management
skillsof staff
Improvedispatch,
diagnostic, resolution
andreplacement
processes
Improveincentives
aroundIT/network
efficiency
Improvetermswith
serviceproviders
(contractors, network
services, consultants, etc.)
Improvetermson
purchasedandleased
assets (PCs, servers,
networkequipment, leased
lines, etc.)
Improvetermson
purchasedandleased
real estate, furniture
andfixtures
Increaseutilizationof
real estate
Improvecapacity/
demandplanning
processesandtools
Improvereal estate
designanddevelop-
ment processes
Improveoperational
processes
(administration, security,
energy, HVACand
maintenance)
Improvereal estate
selection, acquisition
andcontracting
processes
Improvereal estate
improvement and
deployment
processes
Improvetermswith
serviceproviders
(security, energy, etc.)
Improvetermson
improvements
(HVAC, cabling, etc.)
Improvetermswith
third-partyproduct
andserviceproviders
(payroll, benefits, training,
etc)
Reducesalaryand
benefitscosts/
Improvevalueof
employeebenefits
Improvecapacity/
demandplanning
processesandtools
Implement/improve
company-wide
processesandtools
for assessingstaff
performance
Improve
recruitment and
orientationprocesses
Improveskillsof HR
staff
Providestaff with
better HRinformation
andtools
Improve
training
processes
Improvesalaryand
benefitsadministra-
tionprocesses/
Increaseemployee
self-service
Improve
payroll
processes
Improve
performance
assessment
processes
Rationalize/
consolidatevendor
portfolio
Increasefocuson
higher-valuevendor
partnerships
Improvecollaboration
withvendors
Increaseuseof lower-
cost channels
(self-service, etc.)
Improveassignment
of procurement
transactionsto
appropriatestaff
Improvedemand
planningprocesses
andtools
Improveproduct
procurement
processes
(equipment, supplies, etc.)
Improveservice
procurement
processes
(travel, contract labor, etc.)
Improvecontracting
andnegotiationskills
of procurement staff
Providestaff with
better product and
serviceinformation
Improveincentives
aroundprocurement
efficiency
Improvetermson
equipment and
supplies
Improvetermswith
serviceproviders
(equipment maintenance,
delivery, warehousing, etc.)
Improvetermswith
serviceproviders
(informationservices,
consultants, etc.)
Improve
strategicplanning
processes
Improveskillsof
business
management staff
Providestaff with
better managerial
informationandtools
Improveincentives
aroundbusiness
planningefficiency
Improve
programplanning
processes
Improvecapital
budgeting
processes
Improve
program
management
processes
Improve
accountingand
measurement
processes
Improvetermswith
financial services
providers
Improve
cash/treasury
management
practices
Improveskillsof
financial management
staff
Improveincentives
aroundfinancial
management
efficiency
Improvedebt and
equitymanagement
processes
Increasefocuson
materials-efficient
production
mechanisms
Rationalizeand/or
refocusproduct
portfolio
Increaseemphasison
designingfor
materialsefficiency
Rationalize/
consolidatevendor
portfolio
Focuseffortson
higher-valuevendor
relationships
Improvetermson
materialspurchases
Rationalizeorder
quantitiesandtiming
Improvematerials
performance
management
methodsandtools
Improvedemand
forecasting
processes, skillsand
tools
Improveorderingand
receipt processes
(rawmaterials, intermediate
materials, finished
components, etc.)
Improvematerials
efficiencyof
productionprocesses
Improvecontracting
andnegotiationskills
of purchasingstaff
Providestaff with
better product
informationandtools
Designproductsto
usecost-effective
materials
Improvetermswith
serviceproviders
(delivery, warehousing, etc.)
Rationalizeand/or
refocusproduct
portfolio
Improvefocuson
higher-valueproducts
Rationalizeproduction
quantitiesandtiming
Increaseuseof lower-
cost production
channels
Improvetermswith
serviceproviders
(outsourcedfunctions, etc.)
Improveterms
onequipment
purchases
Improveproduction
performance
management
methodsandtools
Improvedemand
forecasting
processes, skillsand
tools
Improvecapacity
planningprocesses,
skillsandtools
Improve
productionscheduling
andstaging
processes
Improveutilizationof
productionchannels/
Reducedowntime
Improveskillsof
productionstaff
Providestaff with
better production
informationandtools
Improveincentives
aroundproduction
efficiency
Improvecoordination
withbusiness
partners
Improve
manufacturingand
qualitycontrol
processes
Rationalizeand/or
refocusproduct
portfolio
Rationalize/
consolidatevendor
portfolio
Improvefocuson
higher-valuevendor
relationships
Improvetermson
merchandise
purchases
Rationalizeorder
quantitiesandtiming
Improve
merchandising
performance
management
methodsandtools
Improvedemand
forecasting
processes, skillsand
tools
Improveassignment
of transactionsto
appropriatestaff
Improve
merchandise
orderingandreceipt
processes
Improveskillsof
merchandisingstaff
Providestaff with
better informationand
tools
Improveincentives
aroundmerchandising
efficiency
Improvecoordination
withvendors
Improvetermswith
serviceproviders
(delivery, warehousing, etc.)
Rationalizeand/or
refocusproduct
portfolio
Increaseemphasison
designingand
packaging
for distribution
Increasequalityand
consistencyof
materials
Rationalizeproduction
quantitiesandtiming
Rationalize
merchandiseorder
quantitiesandtiming
Increaseuseof lower-
cost logisticsand
distributionchannels
Improveinventory
receipt andstorage
processes
Improvetransport and
deliveryprocesses/
algorithms
Improveskillsof
inventoryand
distributionstaff
Providestaff with
better informationand
tools
Improveincentives
aroundinventory/
distributionefficiency
Improvelogistics
performance
management
methodsandtools
Improvedemand
forecasting
processes, skillsand
tools
Improvetermswith
serviceproviders
(transport, warehousing,
etc.)
Improvefocuson
higher-valuecustomer
segmentsand
products
Rationalizeand/or
realignproduct
development
efforts
Increaseuseof lower-
cost product
development
channels
Improveproduct
conception/initiation
processes
Improveutilizationof
product development
channels
Improveskillsof
product development
staff
Improvedefinitionof
product andservice
specifications
Improveincentives
aroundproduct
development
efficiency
Improve
prototyping, piloting
andtestingprocesses
Improve
designand
development
processes
Improveidentification
anddiscontinuationof
unsuccessful
efforts
Licenseor acquire
productsand
intellectual property
Developbusiness
modelswithlowreal
estaterequirements
Reducenumber of
datacenters, branch
offices, dealerships,
retail outlets, etc.
Outsourcebusiness
functions
Increaseuseof
leasedreal estate
Improveterms
onpropertyand
facilities
Reconfigurefacilities/
Increaseutilizationof
facilities
Increaseuseof
flexiblefacilities
Divest low-utilization
real estate
Rationalizeand/or
refocusproduct and
serviceportfolios
Outsourcebusiness
functions
Increase
useof leased
productionequipment
ImprovetermsonIT
systems
Increaseuseof
flexible/expandable
productionequipment
Increaseemphasison
designfor
manufacturabilityand
service
Divest low-utilization
equipment
Improve
effectivenessof plant
maintenance
Improveterms
oninfrastructure
Divest low-utilization
infrastructure
Increase
useof flexibleand
expandable
infrastructure
Increaseuseof
leasedinfrastructure
Rationalizeand/or
refocusproduct
portfolio
Rationalizeand/or
refocuscustomer
segmentsand
distributionchannels
Developlow-Inventory
businessmodels
Increaseemphasis
onbuild-to-order
Improvetermson
merchandise
Improve
collaborationwith
vendors/partners
Improve
demandforecasting
Consolidate
inventory
Improvelogistics/
distributionefficiency
Divest low-demand/
obsoleteinventory
Rationalizeand/or
refocusproduct
portfolio
Shortenproduction
cycles
Rationalizeraw
materials
Increaseuseof just-
in-timeprocurement
Improve
demandforecasting
Improvetermson
materials
Divest obsolete
materials
Coordinate
management of
credit/receivables
acrossbusinessunits
Increasefocuson
customer segments
withlowcredit/loan
needs
Tightencredit/loan
terms
Improveassessment
andbenchmarkingof
credit/receivables
performance
Improvemanagement
of delinquent
accounts
Coordinate
management of
payablesacross
businessunits
Leveragecredit rating
tolengthenpayment
cyclesandreduce
interest rates
Leveragebreadthof
vendor relationships
tolengthenpayment
cycles
Improvemanagement
of debt portfolio
Improveidentification
andpredictionof
industryandmarket
trends
Improveidentification
of opportunitiesand
threats
Improvestrategy
development capa-
bilitiesat corporate
andbusiness-unit
levels
Improvealignment of
budgetsandcapital
programswith
strategicpriorities
Improveexecutive
development,
recruitingand
successionplanning
Improveidentification,
assessment and
executionof
M&A/divestiture
opportunities
Improve
communicationof
strategicdirections
andpriorities
Improvestructuring
andlaunchof
cohesiveprogram
portfolios
Improvecoordination
andcommunication
acrossprogramsand
projects
Improveprogram/
project management
methodsandtools
Improvealignment of
projectswithprogram
andbusiness
objectives
Improve
measurement and
reportingof
operational and
financial performance
Improveanalysisof
managerial
information
Improvefocuson
most important
managerial
information
Improve
communication
aroundimprovement
priorities
Improveability
tolaunch
improvement efforts
Improvequalityand
consistencyof
performance
assessment methods
Improvecareer
optionsandpaths
Alignmanagement
andstaff incentives
withcompany
performance
Improvemonetary
andnon-monetary
recognitionof staff
contributions
Improvebreadth,
depth, qualityand
timelinessof perform-
anceinformation
Improveeffectiveness
of organizational
structuresand
governancemodels
Increaseemphasison
qualitymanagement
andbenchmarking
Improve
processinnovation
skillsof staff
Improvedepth
andbreadthof staff
technical skills
Improvequality
andspeedof
communicationwith
partners
Improveabilityto
integratemerged
andacquired
organizations
Improveabilityto
identifyandassess
partnering
opportunities
Improve
management of
partner relationships
Improveintegrationof
businessprocesses
acrosspartner
networks
Improvevalue
deliveredto
customers
Improvevalue
deliveredtopartners
(vendors, channel partners,
etc.)
Improvevalue
deliveredto
employees
Improveidentification
of opportunitiesto
increasevalueto
stakeholders
Improveunderstand-
ingof stakeholder
interests(customers,
shareholders, regulators,
employees, suppliers,
partners, alumni, etc.)
Improveconversionof
strongrelationships
intosourcesof com-
petitiveadvantage
Improve
communicationwith
stakeholder groups
Improveagilityand
flexibilityof
organizational
structures
Improveagilityand
flexibilityof
governancemodels
Improveflexibility
of business
processes
Improveversatilityof
managersandstaff
Improveflexibility
andversatilityof IT
systemsand
platforms
Rationalize
customer portfolio
Improve
responsivenessto
customer requests
andinquiries
Improvetrackingof
customer interactions
(purchases, support
requests, etc.)
Improveidentification
of valuablecustomer
relationships
Refocusand/or refine
retentionprioritiesand
strategies
Createbarriersto
switching
Solicit andrespondto
customer feedback
Implement affinity
programs
Increaseemphasis
ondifferentiated
productsandservices
Improvedemand
forecasting
Improve
understandingof
customer, product
andchannel
profitability
Consolidateor
outsourceserviceand
support operations
Differentiateservice
treatment of
customers/segments
Providestaff with
better product and
serviceinformation
Improvefinancial
riskmanagement
processes
Increaseuseof lower-
cost delivery/
installationchannels
(self-service, partners, etc.)
Increaseuseof lower-
cost billingchannels
(automated, self-service,
etc.)
Differentiatetreatment
of customers/
segments
Improveemphasison
designfor packing/
shippingefficiency
Consolidateor
outsourceorder
fulfillment functions
(pick, packandship,
install, provision, etc.)
Consolidateor
outsourcebilling
operations
Consolidateor
outsourcedesign,
development and
deployment services
Consolidateor
outsourceoperations
andmaintenance
services
Consolidateor
outsourceend-user
support
Consolidatecompany
real estate/facilities
Consolidateor
outsourcedesignand
development
functions
RationalizeIT
applicationportfolio
Consolidateor
outsource
improvement and
deployment
Consolidateor
outsourceproperty
management
functions
Increaseuseof lower-
cost real estateand
facilities/ Relocate
businessoperations
Consolidateor
outsourcebenefits
administration
functions
Consolidateor
outsourcepayroll
functions
Consolidateor
outsourcerecruitment
functions
Refinevendor
strategies
Standardizeproduct
catalogs
(equipment, officesupplies,
promotional materials, etc.)
Consolidateor
outsource
procurement functions
Consolidateand/or
alignbusiness
planning,
management and
reportingfunctions
Improvealignment of
organizationstruc-
turesandgovernance
modelswithbusiness
strategies
Consolidateand/or
alignfinancial
planning,
management and
reportingfunctions
Consolidateand/or
alignfinancial
accountingand
analysisfunctions
Improveincentives
aroundprocurement
efficiency
Increaseemphasison
designfor production
efficiency
Consolidateor
outsourceproduction
functions
Refine/align
logisticsand
distributionstrategies
Increasefocuson
higher-valueproducts
andpartners
Consolidate/
outsourcelogistics
anddistribution
functions
Rationalizeand/or
refocusproduct and
serviceportfolios
Consolidateor
outsourceproduct
development
functions
Increaseemphasison
modular, extensible,
scalabledesigns
Consolidate
ITsystems,
productionlinesand
servicemechanisms
Increaseemphasison
high-turnproducts
Increaseemphasison
designingfor
manufacturing
efficiency
Improve
collaborationwith
vendors/partners
Increaseemphasison
designingfor
materialsefficiency
Increasefocuson
vendorswith
favorablepayment
terms
Increaseemphasis
onrisk-informed,
scenario-based
planning
Increaseemphasison
enterprise-wide
programplanningand
collaborativeprogram
delivery
Increaseemphasis
oncontinuous,
proactiveperform-
ancemanagement
Improve
determinationof key
performancemetrics
andtargets
Establishaculture
centeredon
operational
excellence
Increasefocuson
partnership, merger
andacquisition
opportunities
Increasefocuson
stakeholder
relationships
Establishprocess
improvement and
innovationaskey
competencies
Establish
management of key
stakeholder
relationshipsas
organizational priority
Increasefocuson
businessagilityand
flexibility
Establishagilityand
flexibilityaskey
competencies
Increaseintegrationof
businessprocesses
acrossorganizational
boundaries
Improve
partnershipand
collaborationskillsof
staff
Improveutilizationof
salesstaff
Improveutilizationof
servicestaff
Providestaff with
better product, service
andcompetitive
information
Implement integrated
applicationsacross
organizational
boundaries
ConsolidateIT,
telecomandnetwork
equipment and
facilities
Utilizemore
efficient production
equipment
Improvequalityand
consistencyof
manufacturing
materials
2004. All rights reserved. Confidential. 0104
Improvevalue/
Decreaseprices
Improveassessment
andbenchmarkingof
businessprocess
performance
Improvesharingof
knowledgeacross
organizational
boundaries
Improvesharingof
knowledgeacross
organizational
boundaries
Improvebusiness
continuityplanning
anddisaster recovery
capabilities
Improveabilityto
developandspin-off
newbusinesses
Increasefocusonrisk
management and
regulatorycompliance
Improvefocuson
price-insensitive
customer segments
Increaseemphasison
differentiatedpricing
acrosscustomer
segments
Improve
understandingof
customer price
sensitivity
Alignadvertisingwith
pricingstrategies
Improvetailoringof
offeringstocustomer
needs
Increaseuseof
differential pricing
mechanisms(basedon
customer value, risk, etc.)
Increaseemphasis
onpreventive
equipment
maintenance
Defer/changetiming
of capital investments
Increaseutilizationof
productionequipment
Increasefocuson
managerial, forward-
lookinginformation
Improve
understandingof
product/servicevalue
tocustomers
Increasefocuson
pricingeffectiveness/
priceoptimization
Increasefocuson
R&D, product
innovation, and
product leadership
Broadenproduct and
serviceofferings
Improveproduct/
serviceR&D
anddeployment
capabilities
Adapt current
productsandservices
for newsegments/
channels
Improveproduct- and
service-innovation
skillsof staff
Increaseemphasison
serviceprevention/
Reduceneedfor
service
Increaseemphasison
designingfor service
efficiencyandself-
service
Routelow-value
transactionstolower-
cost saleschannels
Improveroutingof
servicerequeststo
appropriateservice
channels
Increaseuseof
cheaper service
channels
Improveservice
performance
management
methodsandtools
Improveworkforce
planning, dispatch
andassignment
processes
andtools
Improvecapacity/
demandplanning
processes, skillsand
tools
Improveserviceand
support processes
Improveskillsof
servicestaff
Providestaff with
better customer
information
(profiles, transaction
histories, etc.)
Improvestaff
incentivesaround
serviceefficiency
Improvetermswith
serviceproviders
(outsourcedservices,
networkservices,
informationservices, etc.)
Improvetermson
leasedserviceassets
(computers, vehicles, etc.)
Consolidateor
outsourceservice
operations
Differentiatetreatment
of customers/
segments
Providestaff with
better product, service
andcontract
information
Rationalizeand/or
refocusservices
offered
Improveutilizationof
servicestaff
Improvefocuson
higher-valuecustomer
relationships
Convert freeservices
tofee-basedservices
Alignproduct and
servicepriceswith
valuetocustomers
Establishproduct,
serviceandprocess
innovationaskey
competencies
Improveproduct
innovationprocesses
Improveproduct,
serviceandprocess
innovationskillsof
staff
Improveassignment
of accountabilityand
authority
Improveeffectiveness
of organizational
structures
Dynamicallycancel or
redirect ineffective/
obsoleteprograms
andprojects
Improvetrackingand
communicationof
program/project
progress
Improveassignment
of resourcesto
projects
Improveprogram/
project management
skillsof staff
Improvemanagement
of vendors/service
providers
Establishprogram/
project deliveryasa
keycompetency
Improvealignment of
customer, product,
advertising, sales,
service, support, and
fulfillment strategies
Develop, spin-off and
sell newbusinesses
Improveinvestment
returnsoncash/
treasuryfunds
Licenseor sell
intellectual capital to
other enterprises
Improvebrand
strengthandgoodwill
Improvebrand
strengthandgoodwill
Sell appreciated
assets
Increaseemphasison
generatingrevenue
fromcompanyassets
Increasefocuson
developingand
protectingintellectual
capital
Increasefocuson
creditworthycustomer
segments
Improvecollections
processes
Improveand
standardizecredit
assessment
processes
Differentiatecredit
treatment of
customers/segments
Improve
understandingof
customer needs
Increasefocuson
expansionof
customer
relationships
Improveproduct and
servicewithdrawal
andretirement
processes
Acquirecompetitors
Improve
establishment of and
adherencetoservice-
level targets
Increaseuseof
distance/on-line
learning
Establishcustomer
communities
Improvecross-sell
andup-sell
approaches/models
Applybrandtonew
andunbranded
products
Developandleverage
strong/uniquepartner
relationships
Developandleverage
strongbrand
Developstrong
customer
relationshipsand
communities
Developandutilize
uniquephysical
resources
(facilities, land, etc.)
Developandutilize
uniquehuman
resources
(thought leaders, managers,
subject matter experts, etc.)
Developandleverage
intellectual capital
(copyrights, patents,
trademarks, etc.)
Increasefocuson
strategicassets
Improveasset
development skillsof
management and
staff
Improveincentives
aroundasset
development
Establish
development of
strategicassetsasa
keycompetency
Increaseemphasison
leveragingstrategic
assets
Shortenproduction
cycles
Improvedevelopment
andanalysisof
businesscases
Improvesecurityof
applications, systems
anddata
Improvecost
accountingand
allocationof shared/
overheadcosts
Improverecruiting
effectiveness
Improverelationship
management
strategiesfor key
stakeholder groups
Improvevalue
deliveredto
shareholders
Rationalizeand/or
refocusproduct and
serviceportfolios
Rationalizeand/or
refocusproduct and
serviceportfolios
Improvephysical
securityof people
Improve
communicationand
knowledgetransfer
acrossorganizational
boundaries
Consolidateor
outsourcelearning
anddevelopment
functions
Increaseemphasis
onpeople/talent
development
Improvetalent
management models
andprograms
Improveidentification
of stakeholder groups
andestablishment of
priorities
Improvevalue
deliveredtoother
stakeholders
(public, alumni, analysts,
etc.)
Shortenorder-to-
deliverycycletime/
Improveproduct and
serviceavailability
Increaseemphasis
ondesignfor
configurability/
customization
Improveplatformand
portfoliostrategiesfor
productsandservices
Increaseemphasison
time-to-market and
time-to-production-
volume
Increasenumber and
qualityof product and
servicelaunches
Increaseutilizationof
modular, reusable
designs
Improvecollaboration
withdesign,
development and
productionpartners
Improvereuseof
product andservice
components
Improvemanagement
of product lifecycles
(launchthroughretirement)
Increaseemphasison
account/relationship
development
Improveaccount
management skillsof
staff
Improveincentivesfor
product development
andinnovation
Improveincentivesfor
account/relationship
development
Improve account
management
strategies
Shortenorder-to-
deliverycycletime/
Improveproduct and
serviceavailability
Improvetotal
customer experience
(purchasing, fulfillment,
usage, support, service,
etc.)
Improveexecutionof
market- andsupply-
drivenpromotions
Improvestructuring
andpricingof
promotions
Improvecoordination
withsuppliersand
saleschannels
Improveuseof
supply- andcapacity-
drivenpromotions
Increaseuseof
promotions
Rationalizeand/or
refocusproduct and
serviceportfolios
Improvefocuson
segmentswithlower
averagecost-to-serve
Improvecollaboration
withpartnersand
customers
Increaseuseof
vendor-managed/
vendor-warehoused
inventory
Improvedue-date
reliability
Manageprocurement
onanational/global
basis
Utilizenational/global
purchasingpower
Increasefocuson
component reuse
Reduceprocurement
cycletimes
Improvecollaboration
withvendors
Improvedesign/
structureof
distributionnetworks
Alignproductionand
merchandiseordering
scheduleswith
distributionschedules
Improveretrieval
processes
Managepurchasing
onanational/global
basis
Refineand/or align
merchandising
strategies
(central vs. local
merchandising, etc.)
Improveuseof
national/global
purchasingpower
Increaseuseof
vendor-managed/
vendor-warehoused
inventory
Increaseuseof
vendor-managed/
vendor-warehoused
inventory
Increaseuseof
vendor-managed/
vendor-warehoused
inventory
Improveproduct and
serviceintroduction/
launchprocesses
Rationalize
productionfacilities
Rationalizeproduction
quantitiesandtiming
Rationalize
merchandiseorder
quantitiesandtiming
Increaseuseof
vendor-managed/
vendor-warehoused
inventory
Rationalizeproduction
quantitiesandtiming
Increaseemphasison
useof common
components
Increaseutilization
of standardized
components
Managematerials
sourcingona
national/global basis
Increaseuseof
vendor-managed/
vendor-warehoused
inventory
Increaseemphasison
customer retention
Proactivelymanage
transitionpoints
(lifeevents, endsof
contractsandleases, etc.)
Offer value-adding
product andservice
bundles
Improvefocuson
employeeretention
Improveemployee
retentionprograms
Utilizemoreefficient
ITsystems
Utilizemore
flexible/expandableIT
systems
Improvemaintenance
of ITsystems
Increaseutilizationof
ITsystems
Divest low-utilization
ITsystems
Improvetermson
productionequipment
Improvefocusof
companyresources
onhigh-priority
initiatives
Increaseemphasison
cross-business-unit
andcross-company
collaboration
Increaseproactive
pursuit of
partnerships, mergers
andacquisitions
Increaseemphasison
customer satisfaction
Improvequality
assuranceprograms
Sell or leaseexcess
capacitytoother
enterprises
(productioncapacity, service
capacity, etc.)
Coordinatepricingof
complementary
productsandservices
(razorsv. blades/ product v.
shippingcharges, etc.)
Improveprice/margin
knowledgeof staff
Buildproduct
margins/profitability
intosalesincentives
Rationalizeportfolioof
financial services
providers
Improveaudit and
compliance
management
processes
Improvebusiness
casedevelopment
andanalysis
processes
Improvebreadth,
depthandqualityof
financial information
(asset, budget, price/cost,
treasury, debtor/creditor,
performance, tax, risk, etc.)
Improvebudgeting
andforecasting
capabilities
Improvefinancial
reportingefficiency
Improveasset
management
processes
(fixedandvariableassets)
Improveintegrationof
ITsystemsacross
partner networks
Increaseemphasison
operational integration
withpartners
Removebarriersto
switching
Improvecontract
management
processes
(negotiation, executionand
compliance)
Refinevendor/
supplier strategies
Consolidateor
outsource
merchandising
functions
Establish
cross-company
collaborationasakey
competency
Improveperformance
andreliabilityof IT
systems/platforms
(applications, equipment,
networks, etc.)
Improvebreadth,
depth, qualityand
timelinessof business
information
Improveaccessto
anddistributionof
businessinformation
Developandutilize
uniqueITresources
(applications, networks, etc.)
Improve
understandingof
current customer
satisfaction
Improvevisibilityof
customer
relationshipsand
interactionsacrossall
channels
Improveadherenceto
contractsand
agreements
Increasefocuson
higher-valueproducts
andservices
Improvefocuson
higher-value
advertisingchannels/
media
Focussaleseffortson
higher-margin
productsandservices
Increaseuseof lower-
cost saleschannels
(telesales, outlets, self-
service, etc.)
Improvefocuson
higher-value
customers/segments
Rationalizeand/or
refocusproduct and
serviceportfolios
Bypasscurrent
channels/ Sell
directlytocustomers
Rationalizetargeted
marketsandcustomer
segments
Improveanalytical
processesandtools
Improvechannel
management
processesandtools
Outsourceproperty
taxadministration
activities
(compliance, assessment,
negotiations, etc.)
Improvebusiness
performancereporting
processes
Improvealignment of
HRandtechnology
strategieswith
businessstrategies
Improvemanage-
ment of regulatory
compliance
Developandleverage
political relationships
andalliances
Developandcultivate
goodwill
Improveanticipation
andunderstandingof
current andpotential
regulations/legislation
Improveeffectiveness
of legislative/lobbying
efforts
Acquirecompaniesin
targetedgeographies
Acquirecompanies
withrelationshipsin
targetedcustomer
segments
Improvemethodsand
toolsfor managing
salesandmarketing
performance
Acquirecompanies
alignedwithproduct
strategies
Improvemethodsand
toolsfor managing
innovation
performance
Increasefocuson
divestitureand
reinvestment
Divest non-performing
andnon-strategic
businessunits
AlignM&Astrategies
withbusiness
objectives
Improve/standardize
M&Aprocesses
Improve
understandingof
internal valueand
market valueof
businessunits
Increaseconsidera-
tionof M&Aand
divestitureoptions
Improveaccount
management
methodsandtools
Improvesales
performance
management
methodsandtools
Improveretention
performance
management
methodsandtools
Improvemanagerial
methodsandtools
Improvemethodsand
toolsfor managing
demand/supply
performance
Improvemethodsand
toolsfor managing
pricingperformance
Improvemarketing
andadvertising
performance
management
methodsandtools
Improvesales
performance
management
methodsandtools
Improveserviceand
support performance
management
methodsandtools
Improveorder
management
methodsandtools
Improveprocurement
performance
management
methodsandtools
Improvereal estate
performance
management
methodsandtools
ImproveHR
performance
management
methodsandtools
Improve/consolidate
ITperformance
management
methodsandtools
(utilization, performance,
capacityplanning, etc.)
Improveproduct
development
performance
management
methodsandtools
Improve
understandingof
businessunit
performanceand
market values
Consolidatedevice
management
informationandtools
Improvealignment of
capital budgetsand
programplanswith
businesspriorities
Improvealignment of
businessunit
strategieswith
enterprisestrategies
Improvealignment of
financial strategies
withcorporate
strategies
Strengthen
enterprise-wide
financial reporting
standards
Increasefocuson
businessinsight and
forward-looking
information
Improveintegrationof
short- andlong-term
businessplanning
Improveleadership
andmanagement
skillsof executives
Increaseemphasison
continuous, proactive
management of
investment portfolios
Improvevendor
management skillsof
staff
Improveinvolvement
of operational staff in
project delivery
Improve
accountability/
authorityof program
andproject resources
Improveeffectiveness
of program/project
governancemodels
Increasefocusonkey
performancemetrics
Increasefocuson
businesscontinuity
planning
Increasefocuson
project qualityand
riskmanagement
Increasefocuson
realizationof targeted
businessbenefits
Improveidentification
andmanagement of
program/project risks
Continuouslytrack
andmanagethe
realizationof project
benefits
Structureprograms/
projectstodeliver
benefitsprogressively
Improveaccessto
anddistributionof
performance
information
Improve
understandingof
partner strengths,
weaknessesand
interests
Improveabilityto
structureand
implement durable,
mutuallybeneficial
partnerships
Improveagilityand
flexibilityof partner
organizationsand
networks
Developandutilize
uniqueproduction
resources
(methods, equipment,
facilities, etc.)
Rationalize/
consolidatevendor
portfolio
Improvecoordination
of paymentsacross
businessunits
Improveassessment
andbenchmarkingof
A/Pperformance
Refinedays-
outstandingstrategy
Improvealignment of
A/Psystemsand
processeswithdays-
outstandingstrategy
Refinecredit/days-
receivablestrategy
Improvemanagement
of credit riskacross
businessunits
Improvemanagement
of credit/loanportfolio
How Value is Created
(Value Drivers)
What You Can Do
(Improvement Levers: Business Processes,
Assets and Organizational Capabilities)
Other Shared / Corporate Services
(Real Estate, Procurement andOther)
Human Resource Strategy and Management
(Recruitment, Development, Administrationand
PerformanceManagement)
IT Strategy and Management
(Design, Development, Deployment, Operationsand
PerformanceManagement)
Business Strategy and Management
(BusinessandFinancial Strategy, MergersandAcquisitions, Tax
Management, RiskManagement, ComplianceManagement, Program
Management andPerformanceManagement)
Customer Strategy, Relationships and Interactions
(Marketing, Sales, Delivery/Provisioning, BillingandService)
Product Strategy, Development and Production
(InnovationandDesign, SupplyChainManagement, Production
OperationsandLogistics)
Business Process Groupings
All Process Groupings
(Actionmayapplytoall processes)
Change What You Do
- What youprovide
- Whomyoutarget andserve
- Howyoucompete
- Whereyoudeployresources
- Whichoperationsyououtsource
Do What You Do Better
- Strengthengovernanceapproaches
- Alignresourceswithstrategies
- Improvebusinessprocesses
- Honestrategiccapabilities
- Managetaximpactsandopportunities
- Improvecontrol / reducerisk
- Collaboratemoreeffectively
- Satisfycustomers, employeesand
other stakeholders
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.
Improvecustomer
incentivesfor
accelerated/on-time
payment
Improvecross-
selling/up-selling
skillsof staff
Improvecustomer
serviceandretention
skillsof staff
Increasefocuson
product innovation
Improvemanagement
of trade/indirect taxes
(sales/use, VAT, GST, etc.)
Improvetaxcollection
andremittance
processes
Improvemanagement
of international staff
costs
(immigration, payroll, staff
support, international equity,
etc.)
Utilizeavailable
federal, stateand
local employment/
trainingincentives
Improvetechnology
anddatarisk
management
processes
Improvecompliance
management
processes
Improvetaxmanage-
ment processes
(direct andindirect tax
management)
Optimizetaxbenefits
associatedwithself-
constructedassets
(plant, facilities, internally-
usedsoftware, etc.)
Improvemanagement
of transfer pricing
Improvemanagement
of tradeandindirect
taxes(sales/use, VAT,
GST, etc.)
Improvemanagement
of transfer pricing
Improveincorporation
of riskanalysisin
businessplanning
(internal andexternal risk)
Integratetaxoppor-
tunitiesandissues
intobusinessplanning
processes
Improveidentification
andmitigationof
operational risk
(people, process, tech-
nology, data, etc.)
Improvequalityof
informationprovided
tostakeholders
(accuracy, timeliness,
transparency&
predictability)
Developandutilize
uniqueinformation
resources(customer,
product, market, etc.)
Improvemanagement
of organizational
changeinsupport of
initiatives
Improveoperational
riskmanagement
processes
Improveconsideration
of taximplicationsin
theacquisitionand
dispositionof assets
Maximizetaxbenefits
associatedwithmajor
businessdecisions
(M&A, consolidation, out-
sourcing, siteselection, etc.)
Increaseemphasison
permanentlylowering
thecompany's
effectivetaxrate
Improveaccuracyand
timelinessof tax
provisionandcash
outflowforecasts
Improvefocusof tax
function/department
onproactivetax
planning
Integratetaxoppor-
tunitiesandissues
intobusinessplanning
processes
Optimizeaccounting
methodsandselec-
tionof accounting
periods
Migrateincometo
low-taxjurisdictions
Utilizeinternational
financingopportuni-
tiestominimizeafter-
taxborrowingcosts
Optimizeexpensevs.
capitalizationof costs
(M&Acosts, R&Dcosts,
etc.)
Improveidentification
andapplicationof
R&Dtaxincentives
Improveabilityto
utilizeoffshorecash/
assetsandmove
betweengeographies
Improveabilityto
utilizeoffshorecash/
assetsandmove
betweengeographies
Improvemanagement
of transfer pricing
Improveabilityto
utilizeoffshorecash/
assetsandmove
betweengeographies
Ensureproper
valuationof property
for taxpurposes
Buildtaxopportunities
intoreal estate
transactions
(incomedeferral, location
creditsandincentives,
leasingterms, etc.)
Improvetaxbenefits
of compensationand
benefit programs
(deferredandequity-based
comp; retirement and
healthcarebenefits, etc.)
Managepayroll tax
impactsof business
initiatives
(M&A, consolidation,
restructuring, relocationetc.)
Optimizeutilizationof
availablesales/use
taxexemptions
Improvemanagement
of indirect taxes
(sales/use, VAT, customs
duties, etc.)
Ensureadequate
documentationof
significant tax
positions
(earnings&profits, transfer
pricing, taxopinions, etc.)
Accelerateor defer
income/expenses
Clarifygovernance
rolesandresponsi-
bilities(delegationof
authority, segregationof
duties, etc.)
Implement/enhance
anonymousemployee
reportingandfeed-
backmechanisms
Aligncompensation
andincentivesystems
withstrategies, values
andethics
Improveunder-
standingof regulatory
requirements
Strengthencorporate
governancestructures
(composition, selection,
roles, etc.)
Strengthentraining/
educationof board
andaudit committees
Strengthenand
communicatemission,
vision, valuesand
ethics
Improvefocuson
internal controlsand
regulatorycompliance
Buildvaluesand
ethicsintocorporate
culture
Increaseemphasison
riskidentificationand
management
Improveriskplanning,
mitigationandcontrol
approaches
Improvemonitoring
andmanagement of
regulatorycompliance
Improvecompany-
widemonitoringand
management of risks
Improveidentification
andassessment of
risk(strategic, operational,
investment, financial, com-
pliance, data/privacy, etc.)
Improvemonitoring
andmanagement of
riskandcompliance
(strategic, operational and
financial risks; regulatory
andtaxcompliance)
De l o i t t e E n t e r p r i s e Va l u e Ma p
T M
(Practical paths to increase shareholder value)
Its 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.
Improvebreadth,
depth, qualityand
timelinessof manag-
erial information
Improve/implement
internal control
frameworksand
policies
Strengthenand
communicate
governancepolicies
andprocedures
Aligninternal audit
practiceswith
businessandrisk
objectives
Improvecommuni-
cationbetweenthe
board, management,
shareholdersandthe
public
Improvemechanisms
for collectingand
implementing
employeeideas
Buildinnovationand
improvement into
rewardsand
incentives
Improvemechanisms
for solicitingand
addressing
stakeholder feedback
Develop/integrate
global HRpractices
(internal/external, onshore/
offshore, etc.)
Improveutilizationof
telecomtaxincentives
(credits, exemptions, etc.)
Improveprofitabilityof
R&Deffortsthrough
utilizationof taxand
economicdevelop-
ment incentives
Improveprofitabilityof
R&Deffortsthrough
utilizationof taxand
economicdevelop-
ment incentives
Improvetrackingand
recoveryof indirect
taxes(sales/use, VAT,
GST, etc.)
Ensuretaxplanning
activitiesandtax
filingscomplywith
regulatoryenviron-
ment
Increaseaccount-
abilityof business
unit leadersfor tax
impact of decisions
Improvecoordination
of operational, invest-
ment, financial, M&A,
andtaxstrategies
acrossbusinessunits
Utilizetax-effective
corporatestructures
for ownership/licens-
ingof intangible
assets(patents, trade
names, IP, etc.)
Improvebenchmark-
ingof global effective
taxrateagainst
industrypeer group
Utilizetaxopportuni-
tiesaroundriskman-
agement activities
(hedgingtransactions,
commoditiestrading, etc.)
Defer andreduce
federal, stateand
local quarterlyesti-
matedtaxpayments
Consider tax
incentivesinlocation
andselectionof
facilities
Increasefocuson
post-merger synergy
andcost reduction
programs
Improvebreadth,
depth, qualityand
timelinessof business
planninginformation
Utilizetax-effective
corporatestructures
for ownership/licens-
ingof intangible
assets(patents, trade
names, IP, etc.)
Developandutilize
uniquetaxexpertise
Partnership&
Collaboration
Company Strengths External Factors
Expectations
Improve
Management & Governance
Effectiveness
Improve
ExecutionCapabilities
Business
Planning
Program
Delivery
Business
Performance
Management
Operational
Excellence
Relationship
Strength
Agility&
Flexibility
Governance
Strategic
Assets
Property, Plant &
Equipment
(PP&E)
Inventory
Receivables
& Payables
Asset Efficiency
Improve
PP&E
Efficiency
Improve
Inventory
Efficiency
Improve
Receivables& Payables
Efficiency
Real Estate&
Infrastructure
Equipment &
Systems
Finished
Goods
Workin
Process&
RawMaterials
Accounts,
Notes&
Interest
Receivable
Accounts,
Notes&
Interest
Payable
Cost of Goods Sold
(COGS)
Income Taxes
Improve
Logistics& Service
Provision
Efficiency
Improve
IncomeTax
Efficiency
Merchandising
Logistics&
Distribution
Service
Delivery
IncomeTax
Management
Selling, General &
Administrative
(SG&A)
Operating Margin
(after taxes)
Improve
Customer Interaction
Efficiency
Improve
Corporate/SharedServices
Efficiency
Marketing&
Advertising
Sales
Customer
Service&
Support
Order
Fulfillment &
Billing
IT, Telecom&
Networking
Real Estate
Human
Resources
Procurement
(ExcludingProduction
Materials&
Merchandise)
Business
Management
Financial
Management
Improve
Development & Production
Efficiency
Materials Production
Product
Development
Volume Price Realization
Revenue Growth
AcquireNewCustomers
RetainandGrowCurrent
Customers
LeverageIncome-
GeneratingAssets
StrengthenPricing
Marketing&
Sales
Cross-Sell/
Up-Sell
Retention
Demand&
Supply
Management
Price
Optimization
Product &
Service
Innovation
Cash/Asset
Management
Account
Management