Create Your Own Value Chain

Now that you have had a brief introduction to cash flow statements, this is a good time to document the cash flow measures that are most important in your organization and to create a cash flow value chain for your target organization. In exercise 6-1, fill in what you can and make notes of what you need to learn about your organization or your target organization.

Exercise 6.1: Your cash flow measures and financial value chain.

Directions: Complete the following steps for this exercise to conclude your work on step 3 of the financial value process: identify financial imperatives. If you prefer not to write in this book, go to the companion Website (astd.org/astd / publications ) to download a PowerPoint file for this exercise.

1. Fill in the names of as many measures as you can for the four audience levels that you identified in exercise 2-1 in which you defined your audience. Don ‚ t worry if you have them exactly right. Treat this as a brainstorming exercise or a rough draft that you can use as an aid for later research into more complete lists of measures.

2. Use some of your measures to complete a financial value chain. Take this chain to some of your co-workers or customers for their insights on this or other value chains.

3. Make sure to take note of research you need to complete or questions that you would like to ask your boss or a mentor. Add these to the questions you had for research into profit and position measures. The next chapter will give you hints on how to find more business intelligence about your organization or your target organization.

Step 3: Identify Financial Imperatives