Examples of Liability Financial Value Chains


A similar set of measures and a sample financial value chain are shown on figure 5-7.


Figure 5-7: Liability measures and sample financial value chain.

In this case, administrative assistants are required to attend monthly lunch -and-learn sessions. The cost of these sessions is being questioned. The value of the sessions is being linked to a number of profit, position, and cash measures. This sample value chain lists just one: helping to control the expenses for office supplies . In reality, any number of chains could be drawn to show how a WLP professional helps to reduce current liabilities such as the expenses in accounts payable. Chains could also be drawn to show how a WLP intervention reduces the need for short- or long- term debt by cutting costs, conserving cash, or generating additional revenue that could be used to fund expenses without the need for more debt.

Important ‚  

Because ratios compare such items as assets, liabilities, equity, revenue, costs, and profit, you can also point out how any of the financial value chains improve the ratios that the Senior executive measures are a part of.




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

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