Examples of Asset Financial Value Chains


How can you use this information about balance sheets and ratios to communicate your value? To see how assets break into cascading measures through an organization and how those measures can be translated into value chains, take a look at figure 5-6. To help draw a visual link from the financial value chain to WLP interventions, the financial value chains have possible WLP interventions depicted.


Figure 5-6: Asset measure and sample financial value chain.

In the top half of figure 5-6, starting on the left-hand side, are examples of asset measures for each type of audience, ending on the right with examples of WLP interventions that may improve those measures. The closer you get to the Individual level of your audience, the longer and more varied the list of possible measures and interventions becomes. The list of measures and possible interventions in this example are not restricted to what ABC MediCompany might use and are by no means exhaustive in covering every type of organization in every industry.

In figure 5-6, examples of current and long- term asset measures are combined. The interesting thing to note is that although the terms have changed at the Senior or possibly the Mid-level, many of the same measures can appear for the 1st/Ops and Individual audiences as were on the income statement.

Important ‚  

The same intervention can sometimes positively affect profit, position, and cash all at the same time. You can keep your value communication fresh and more powerful by understanding how to point out the impact of your interventions in terms of more than one financial statement.

The sample asset-based value chain in figure 5-6 selects current assets as the Senior-level measure and AR as the Mid-level measure. To help with monthly and weekly collections, employees are receiving training and reinforcement coaching in effective telephone techniques when asking for payment.




Quick Show Me Your Value
Quick! Show Me Your Value
ISBN: 1562863657
EAN: 2147483647
Year: 2004
Pages: 157

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