Enterprise Value Map

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 youcan 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 yourobjectives. 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.

Revenue Growth
How Value is Created
(Value Drivers)

Operating Margin
(after taxes)

Asset Efficiency
Cost of Goods Sold (COGS) Property, Plant & Equipment (PP&E) Receivables & Payables

Expectations

Volume

PriceRealization

Selling, General & Administrative (SG&A)

Income Taxes

Inventory

Company Strengths

External Factors

Acquire New Customers

Retain and Grow Current Customers

Leverage IncomeGenerating Assets

Improve

Improve

Improve

Improve

Strengthen Pricing

Customer Interaction Efficiency

Corporate/Shared Services
Efficiency

Development & Production
EfficiencyLogistics & Service Provision
Efficiency

Improve

Improve

Improve

Improve

Improve

Income Tax
Efficiency

PP&E
Efficiency

Inventory
Efficiency

Receivables & Payables
Efficiency

Management & Governance Effectiveness

Improve

Execution Capabilities

What You Can Do
(Improvement Levers: Business Processes, Assets and Organizational Capabilities)
Marketing &Sales Product & Service Innovation Account Management Cross-Sell/ Up-Sell Retention Cash/Asset Management Demand & Supply Management Price Optimization Marketing & Advertising Sales Customer Service & Support Order Fulfillment & Billing IT, Telecom & Networking Real Estate Human Resources Procurement
(Excluding Production Materials & Merchandise)

Business Management

Financial ManagementProduct Development

Materials

Production

Logistics & Distribution

Merchandising

Service Delivery

Income Tax Management

Real Estate & Infrastructure

Equipment & Systems

Finished Goods

Work in Process & Raw Materials

Accounts, Notes & Interest Receivable

Accounts, Notes & Interest Payable

Governance

Business Planning

Program Delivery

BusinessPerformance Management

Operational Excellence

Partnership & Collaboration

Relationship Strength

Agility & Flexibility

Strategic Assets

Change What You Do
What you provide Whom you target and serve How you compete Where you deploy resources Which operations you outsource

Increase focus on high-value/highpotential customers

Broaden product and service offerings

Increase focus onhigh-value/highpotential customers

Increase focus on high-value/highpotential customers

Increase focus on high-value /highpotential customers

Increase emphasis on generating revenue from company assets Increase focus on developing and protecting intellectual capital Increase focus on divestiture and reinvestment

Acquire competitors

Rationalize and/or refocus product and serviceportfolios Increase emphasis on differentiated pricing across customer segments Increase focus on pricing effectiveness/ price optimization

Rationalize targeted customer segments

Rationalize targeted markets and customer segments

Rationalize and/or refocus product and service portfolios

Differentiate treatment of customers/ segments Increase use of lowercost delivery/ installation...