Four focus areas for creating and maintaining enterprise value – predictability, adaptability, and sustainability of your business model
- Financial stability
- Avoid being highly leveraged
- Monitor
- Capital structure, cash flow, and working capital
- Retained earnings and contingency planning
- External environments – disruptions to supply chains
- Logistics
- Resource scarcities
- Market positioning – customers rarely buy what you think you’re selling
- Avoid your competitor being the better fit
- Understand how your difference (solution, promise: value proposition) is the difference to
- Their wantsTheir fearsTheir definitions of success
- Monitor and continuously improve
- Your customers’ experience
- Competitive analysis
- Understand how your difference (solution, promise: value proposition) is the difference to
- Operations sciences
- Avoid ‘capacity risk’ – optimize productivity of your asset(s) allocation
- Talent, human capitalSlack and lag
- InventoryTech and gear
- Talent, human capitalSlack and lag
- Monitor legal, regulatory, compliance, and cyber risks
- Conduct assessments
- Establish policies, procedures, and response planning
- Avoid ‘capacity risk’ – optimize productivity of your asset(s) allocation
- Networks of capability
- Avoid ‘concentration risk’ – being too dependent on any one strategic partner
- Establish and monitor
- Regular communication
- Diversification, redundancy, and/or alternatives
- Due diligence in upholding contracts and agreements
