Deloitte Enterprise Value MapTM

(Practical paths to increase shareholder value)

Its 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 you can 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 your objectives.
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.

Operating Margin

Revenue Growth

Asset Efficiency

(after taxes)

Expectations

How Value is Created

(Value Drivers)

Volume

Acquire New Customers

Selling, General &

Administrative
(SG&A)

Price Realization

Retain and Grow Current

Customers

Leverage IncomeGenerating Assets

Strengthen Pricing

Cost of Goods Sold

(COGS)

Improve

Improve

Improve

Improve

Customer Interaction
Efficiency

Corporate/Shared Services

Development & Production

Efficiency

Efficiency

Logistics & Service

Provision
Efficiency

What You Can Do

Income Taxes

Property, Plant &

Equipment
(PP&E)

Inventory

Receivables
& Payables

Company Strengths

Improve

Improve

Improve

Improve

Improve

Income Tax

PP&E

Inventory

Receivables & Payables

Efficiency

Efficiency

Efficiency

Efficiency

Management & Governance

Effectiveness

External Factors

Improve

Execution Capabilities

(Improvement Levers: Business Processes,

Assets and Organizational Capabilities)

Change What You Do

-

What you provide

Whom you target and serve
How you compete
Where you deploy resources
Which operations you outsource

Marketing &
Sales

Product &
Service
Innovation

Account
Management

Cross-Sell/
Up-Sell

Retention

Increase focus on
high-value/highpotential customers

Broaden product and

service offerings

Increase focus on
high-value/highpotential customers

Increase focus on
high-value/highpotential customers

Increase focus on
high-value /highpotential customers

Increase focus on
most profitable
products and services

Increase focus on
R&D, product
innovation, and
product leadership

Rationalize
customer portfolio

Increase focus on
most profitable
products and services

Increase emphasis on
customer retention

Increase focus on
most effective sales
and advertising
channels

Increase emphasis
on design for
configurability/
customization

Increase emphasis on
account/relationship
development

Increase focus on
most effective sales
and advertising
channels

Create barriers to
switching

Target new
geographies

Improve platform and

portfolio strategies for
products and services

Improve account
management
strategies

Increase focus on
expansion of
customer
relationships

Refocus and/or refine

retention priorities and
strategies

Target new segments

within current
geographies

Increase emphasis on
time-to-market and
time-to-productionvolume

Expand sales and

advertising channels

Increase number and

quality of product and
service launches

Strengthen governance approaches

Align resources with strategies
Improve business processes
Hone strategic capabilities
Manage tax impacts and opportunities
Improve control / reduce risk
Collaborate more effectively
Satisfy customers, employees and
other stakeholders

BUSINESS PROCESS GROUPINGS

Business Strategy and Management
(Business and Financial Strategy, Mergers and Acquisitions, Tax
Management, Risk Management, Compliance Management, Program
Management and Performance Management)

Customer Strategy, Relationships and Interactions

(Marketing, Sales, Delivery/Provisioning, Billing and Service)

Product Strategy, Development and Production

(Innovation and Design, Supply Chain Management, Production
Operations and Logistics)

Human Capital Strategy and Management

(Recruitment, Development, Administration and
Performance Management)

IT Strategy and Management

(Design, Development, Deployment, Operations and
Performance Management)

All Process Groupings

Rationalize targeted
customer segments

Rationalize targeted
markets and customer
segments

Rationalize and/or
refocus product and
service portfolios

Differentiate treatment
of customers/
segments

Increase focus on
developing and
protecting intellectual
capital

Increase emphasis
on differentiated
products and services

Increase emphasis on
differentiated pricing
across customer
segments

Rationalize and/or
refocus product and
service portfolios

Rationalize and/or
refocus product and
service portfolios

Improve focus on
segments with lower
average cost-to-serve

Increase use of lowercost delivery/

installation channels

Increase focus on
divestiture and
reinvestment

Improve focus on
price-insensitive
customer segments

Increase focus on
pricing effectiveness/
price optimization

Rationalize and/or
refocus channel/
media usage

Increase use of lowercost sales channels

(telesales, outlets, selfservice, etc.)

Differentiate service
treatment of
customers/segments

Convert free services

to fee-based services

Improve focus on
higher-value
segments

Improve focus on
higher-value
customers/segments

Consolidate or
outsource service and
support operations

Increase focus on
product innovation

Improve collaboration
with design,
development and
production partners

Improve
understanding of
customer needs

Improve effectiveness
of marketing,
advertising and sales
processes

Improve reuse of
product and service
components

Increase time spent

selling

Acquire new product

and service offerings

Tailor marketing and

sales approaches to
customer segments

Improve investment
returns on cash/
treasury funds

Improve identification
of cross-sell/up-sell
opportunities

Improve
understanding of
churn/defection
drivers

License or sell
intellectual capital to
other enterprises

Improve
understanding of
current customer
satisfaction

Implement proactive
and reactive crosssell and up-sell
campaigns

Improve identification
of churn/defection
candidates

Sell appreciated
assets

Improve
responsiveness to
customer complaints/
feedback

Improve cross-sell
and up-sell
approaches/models

Improve adherence to
contracts and
agreements

Develop, spin-off and

sell new businesses

Improve product/
service R&D
and deployment
capabilities

Proactively manage
transition points

Improve effectiveness
of cross-sell/up-sell
processes

Improve retention and

win-back processes

Improve access to
information and
analytical tools

Adapt current
products and services
for new segments/
channels

Improve tracking of
customer interactions

Improve quality and

assignment of sales
leads

Pursue joint-venture,
partnership and OEM
arrangements

Maintain competitive
functionality and value

Improve brand
strength and good will

Improve management
of product lifecycles

Tailor products and

services to new
customer segments

(life events, ends of

contracts and leases, etc.)

(purchasing, fulfillment,
usage, support, service,
etc.)

Increase use of
promotions

(production capacity, service

capacity, etc.)

Real Estate

Implement integrated
applications across
organizational
boundaries

Consolidate company
real estate/facilities

Consolidate or
outsource recruitment
functions

Rationalize IT
application portfolio

Consolidate or
outsource design and
development
functions

Consolidate IT,
telecom and network
equipment and
facilities
Consolidate or
outsource design,
development and
deployment services

(self-service, partners, etc.)

Increase use of lowercost billing channels

(automated, self-service,
etc.)

Consolidate or
outsource order
fulfillment functions
(pick, pack and ship,
install, provision, etc.)

Consolidate or
outsource billing
operations

Consolidate or
outsource operations
and maintenance
services

Improve focus on
higher-value
advertising channels/
media

Bypass current
channels / Sell
directly to customers

Design products for

ease-of-use / selfservice

Improve emphasis on
design for packing/
shipping efficiency

Consolidate or
outsource end-user
support

Improve
relationship/account
development
processes

Improve service and

support processes

(licenses, distributorships,
etc.)

Improve
understanding of
product/service value
to customers

Provide staff with

better market and
customer information

Improve processes
for generating,
qualifying and
assigning leads

Align advertising with

pricing strategies

Increase use of
differential pricing
mechanisms (based on

Improve analytical
processes and tools

Improve
communication and
coordination with
distribution centers

Improve tailoring of
offerings to customer
needs

Provide staff with

better competitive
information

Improve
communication and
coordination with
sales channels

Align product and

service prices with
value to customers

Improve definition of
product and service
specification

Improve demand
forecasting

Improve structuring
and pricing of
promotions

Improve tailoring of
marketing and
advertising
approaches to
customer segments

Procurement

Business
Management

Financial
Management

Product
Development

Manage procurement
on a national/global
basis

Consolidate and/or
align business
planning,
management and
reporting functions

Consolidate and/or
align financial
planning,
management and
reporting functions

Rationalize and/or
refocus product and
service portfolios

Rationalize and/or
refocus product
portfolio

Consolidate or
outsource learning
and development
functions

Consolidate or
outsource
procurement functions

Improve alignment of
business unit
strategies with
enterprise strategies

Consolidate and/or
align financial
accounting and
analysis functions

Increase emphasis on
modular, extensible,
scalable designs

Consolidate or
outsource
improvement and
deployment

Consolidate or
outsource benefits
administration
functions

Refine vendor
strategies

Improve alignment of
organization structures and governance
models with business
strategies

Improve alignment of
financial strategies
with corporate
strategies

Consolidate or
outsource property
management
functions

Consolidate or
outsource payroll
functions

Rationalize/
consolidate vendor
portfolio

Improve alignment of
capital budgets and
program plans with
business priorities

Strengthen
enterprise-wide
financial reporting
standards

(Excluding Production
Materials &
Merchandise)

Increase use of lowercost real estate and

facilities / Relocate
business operations

Improve focus on
employee retention

Outsource property
tax administration
activities

Develop/integrate
global HR practices

(compliance, assessment,
negotiations, etc.)

(internal/external, onshore/
offshore, etc.)

Standardize product
catalogs

(equipment, office supplies,

promotional materials, etc.)

Align M&A strategies

with business
objectives

Increase use of lowercost channels

(self-service, etc.)

Integrate tax opportunities and issues

into business planning
processes

Develop business
models with low real
estate requirements

Consolidate or
outsource product
development
functions

Rationalize/
consolidate vendor
portfolio

Increase emphasis on
design for production
efficiency

Refine/align
logistics and
distribution strategies

Manage purchasing
on a national/global
basis

Improve focus on
higher-value customer
relationships

Maximize tax benefits

associated with major
business decisions

Reduce number of
data centers, branch
offices, dealerships,
retail outlets, etc.

Increase use of lowercost product

development
channels

Increase focus on
materials-efficient
production
mechanisms

Consolidate or
outsource production
functions

Increase focus on
higher-value products
and partners

Consolidate or
outsource
merchandising
functions

Increase emphasis on
designing for service
efficiency and selfservice

Increase focus on
component reuse

Increase quality and

consistency of
materials

Increase use of lowercost logistics and

distribution channels

Rationalize/
consolidate vendor
portfolio

Consolidate or
outsource service
operations

Utilize tax-effective
corporate structures
for ownership/licensing of intangible
assets (patents, trade

Improve ordering and

receipt processes

Increase focus on
stakeholder
relationships

Increase focus on
business agility and
flexibility

Increase focus on
strategic assets

Improve communication between the

board, management,
shareholders and the
public

Improve alignment of
customer, product,
advertising, sales,
service, support, and
fulfillment strategies

Establish program/
project delivery as a
key competency

Improve effectiveness
of organizational
structures

Establish process
improvement and
innovation as key
competencies

Establish
cross-company
collaboration as a key
competency

Improve identification
of stakeholder groups
and establishment of
priorities

Establish agility and

flexibility as key
competencies

Establish
development of
strategic assets as a
key competency

Increase focus on
vendors with
favorable payment
terms

Strengthen and
communicate mission,
vision, values and
ethics

Increase emphasis
on risk-informed,
scenario-based
planning

Increase emphasis on
continuous, proactive
management of
investment portfolios

Increase focus on
managerial, forwardlooking information

Improve effectiveness
of organizational
structures and
governance models

Increase proactive
pursuit of
partnerships, mergers
and acquisitions

Establish
management of key
stakeholder
relationships as
organizational priority

Establish product,
service and process
innovation as key
competencies

Increase emphasis on
leveraging strategic
assets

Rationalize/
consolidate vendor
portfolio

Build values and

ethics into corporate
culture

Improve integration of
short- and long-term
business planning

Improve effectiveness
of program/project
governance models

Increase focus on key

performance metrics

Increase emphasis on
cross-business-unit
and cross-company
collaboration

Increase emphasis on
operational integration
with partners

Improve relationship
management
strategies for key
stakeholder groups

Improve agility and

flexibility of
organizational
structures

Utilize tax-effective
corporate structures
for ownership/licensing of intangible
assets (patents, trade

Outsource business
functions

Develop low-Inventory
business models

Increase emphasis on
designing for
manufacturing
efficiency

Coordinate
management of
credit/receivables
across business units

Coordinate
management of
payables across
business units

Consolidate
IT systems,
production lines and
service mechanisms

Rationalize and/or
refocus customer
segments and
distribution channels

Increase emphasis on
use of common
components

Improve management
of credit risk across
business units

Increase emphasis on
high-turn products

Increase emphasis on
designing for
materials efficiency

Increase focus on
customer segments
with low credit/loan
needs

(composition, selection,
roles, etc.)

Improve identification
and prediction of
industry and market
trends

Improve structuring
and launch of
cohesive program
portfolios

Improve
determination of key
performance metrics
and targets

Improve assessment
and benchmarking of
business process
performance

Improve ability to
identify and assess
partnering
opportunities

Increase utilization
of standardized
components

Differentiate credit
treatment of
customers/segments

Improve management
of debt portfolio

Align internal audit

practices with
business and risk
objectives

Improve strategy
development capabilities at corporate
and business-unit
levels

Structure programs/
projects to deliver
benefits progressively

Improve analysis of
managerial
information

Increase integration of
business processes
across organizational
boundaries

Improve capacity
planning processes,
skills and tools

Improve design/
structure of
distribution networks

Provide staff with

better information and
tools

Improve utilization of
service staff

Utilize international
financing opportunities to minimize aftertax borrowing costs

Improve terms
on property and
facilities

Improve quality and

consistency of
manufacturing
materials

Rationalize production
quantities and timing

Shorten production
cycles

Improve and
standardize credit
assessment
processes

Improve alignment of
A/P systems and
processes with daysoutstanding strategy

Implement/enhance
anonymous employee
reporting and feedback mechanisms

Improve development
and analysis of
business cases

Improve coordination
and communication
across programs and
projects

Improve focus on
most important
managerial
information

Improve demand
forecasting
processes, skills and
tools

Improve demand
forecasting
processes, skills and
tools

Rationalize production
quantities and timing

Improve demand
forecasting
processes, skills and
tools

Provide staff with

better customer
information

Improve management
of transfer pricing

Divest low-utilization
real estate

Increase
use of leased
production equipment

Rationalize
merchandise order
quantities and timing

Rationalize production
quantities and timing

Improve management
of delinquent
accounts

Improve coordination
of payments across
business units

Improve understanding of regulatory

requirements

Improve
communication of
strategic directions
and priorities

Improve
accountability/
authority of program
and project resources

Focus efforts on
higher-value vendor
relationships

Rationalize production
quantities and timing

Rationalize
merchandise order
quantities and timing

Rationalize order
quantities and timing

Provide staff with

better product, service
and contract
information

Optimize accounting
methods and selection of accounting
periods

Increase use of
leased infrastructure

Increase utilization of
production equipment

Divest low-demand/
obsolete inventory

Divest obsolete
materials

Improve collections
processes

Improve assessment
and benchmarking of
A/P performance

Improve monitoring
and management of
regulatory compliance

Improve alignment of
budgets and capital
programs with
strategic priorities

Reduce procurement
cycle times

Improve coordination
with business
partners

Align production and

merchandise ordering
schedules with
distribution schedules

Improve assignment
of transactions to
appropriate staff

Differentiate treatment
of customers/
segments

Improve terms on
materials purchases

Shorten production
cycles

Provide staff with

better information and
tools

Improve use of
national/global
purchasing power

Route low-value
transactions to lowercost sales channels

Optimize depreciation
methods/lives for
property, plant and
equipment

Improve terms with

service providers

Improve utilization of
production channels /
Reduce downtime

Improve demand
forecasting
processes, skills and
tools

Increase use of
vendor-managed/
vendor-warehoused
inventory

Improve routing of
service requests to
appropriate service
channels

Ensure full utilization

of tax carryforwards

Improve skills of
inventory and
distribution staff

Improve skills of
merchandising staff

Improve skills of
service staff

Improve staff
incentives around
service efficiency

Improve audit and

compliance
management
processes

Improve
prototyping, piloting
and testing processes

Provide staff with

better product
information and tools

Improve
program
management
processes

Improve business
case development
and analysis
processes

Improve product and

service introduction/
launch processes

Improve assignment
of procurement
transactions to
appropriate staff

Improve
accounting and
measurement
processes

Improve tax management processes

Improve utilization of
product development
channels

Increase focus on
higher-value vendor
partnerships

Improve business
performance reporting
processes

Improve asset
management
processes

Improve collaboration
with partners and
customers

License or acquire
products and
intellectual property

Improve skills of
product development
staff

Provide staff with

better product, service
and competitive
information

Provide staff with

better product and
service information

Improve policies and

processes around
merchandise returns

Improve dispatch,
diagnostic, resolution
and replacement
processes

Increase utilization of
real estate

Improve employee
retention programs

Improve product and

service launch
processes

Consolidate/realign
sales territories

Route low-value
transactions to lowercost sales channels

Provide staff with

better customer and
order information

Improve technology
and data risk
management
processes

Improve terms with

service providers

(equipment, supplies, etc.)

(travel, contract labor, etc.)

(negotiation, execution and

compliance)

Improve product and

service withdrawal
and retirement
processes

Improve sales
forecasting and
campaign execution
processes and tools

Improve routing of
service requests to
appropriate staff

Improve forecasting,
planning and
prioritization skills and
tools

Increase utilization of
IT, telecom and
network resources

Improve terms on
purchased and leased
real estate, furniture
and fixtures

Improve capacity/
demand planning
processes and tools

Improve collaboration
with vendors

Improve/standardize
M&A processes

Improve budgeting
and forecasting
capabilities

Evolve product and

service features,
functionality and value

Improve quality
assurance programs

Implement pricing and

affinity programs
based on volume and
breadth

Proactively manage
transition points

(life events, ends of

contracts and leases, etc.)

Improve ability to
utilize offshore cash/
assets and move
between geographies

Shorten time-tomarket

Improve price/margin
knowledge of staff

Improve campaign
design and
management
processes and tools

Improve terms with

sales channels

Increase use of lowercost service and

information channels

Improve due-date
reliability

Consolidate device
management
information and tools

Improve terms on
improvements

Implement/improve
company-wide
processes and tools
for assessing staff
performance

Improve terms on
equipment and
supplies

Improve compliance
management
processes

Improve financial
reporting efficiency

Shorten order-todelivery cycle time /

Improve product and
service availability

Remove barriers to
switching

Improve account
management skills of
staff

Improve brand
strength and good will

Implement affinity
programs

Utilize tax opportunities around risk management activities

Improve features and

functionality of
products and services

Improve coordination
with suppliers and
sales channels

Improve channel
management
processes and tools

Improve skills of
sales staff

Improve skills of
service staff

Improve skills of order

management and
billing staff

Consolidate and/or
re-architect data
stores

Improve real estate

performance
management
methods and tools

Improve skills of HR
staff

Improve terms with

service providers

Provide staff with

better managerial
information and tools

Improve sales and

marketing skills of
staff

Apply brand to new

and unbranded
products

Improve incentives for

account/relationship
development

Offer value-adding
product and service
bundles

Improve brand
strength and good will

Improve quality and

reliability of products
and services

Build product
margins/profitability
into sales incentives

Improve terms with

advertising channels

Improve staff
incentives around
sales efficiency

Improve incentives
around service
efficiency and
effectiveness

Improve incentives
around order
management
efficiency

Improve
establishment of and
adherence to servicelevel targets

Consider tax
incentives in location
and selection of
facilities

Increase use of
distance/on-line
learning

Utilize national/global
purchasing power

Improve skills of
business
management staff

Improve alignment of
staff incentives with
strategic objectives

Improve product- and

service-innovation
skills of staff

Improve account
management
methods and tools

Shorten order-todelivery cycle time /

Improve product and
service availability

Establish customer
communities

Improve methods and

tools for managing
demand/supply
performance

Improve methods and

tools for managing
pricing performance

Improve skills of
marketing staff

Improve terms with

service providers

Improve terms with

service providers

Improve terms with

service providers

Improve technical and

project management
skills of staff

Ensure proper
valuation of property
for tax purposes

Reduce salary and

benefits costs /
Improve value of
employee benefits

Increase use of
vendor-managed/
vendor-warehoused
inventory

Acquire companies
with relationships in
targeted customer
segments

Improve incentives for

product development
and innovation

Improve contracting
and negotiation skills
of procurement staff

Acquire companies in
targeted geographies

Acquire companies
aligned with product
strategies

Improve staff
incentives for crossselling/up-selling

Build customer
satisfaction and
retention into staff
incentives

Improve methods and

tools for managing
innovation
performance

Improve sales
performance
management
methods and tools

Improve retention
performance
management
methods and tools

(credits, exemptions, etc.)

Strengthen and
communicate
governance policies
and procedures

Improve logistics/
distribution efficiency

Provide staff with

better product and
service information

(utilization, performance,
capacity planning, etc.)

Increase focus on
business continuity
planning

Improve
effectiveness of plant
maintenance

Improve
performance
assessment
processes

Improve/consolidate
IT performance
management
methods and tools

Increase focus on risk

management and
regulatory compliance

Increase use of
leased real estate

Improve capacity/
demand planning
processes and tools

Improve order
management
methods and tools

Increase focus on
realization of targeted
business benefits

Improve ability to
utilize offshore cash/
assets and move
between geographies

Improve end-user
support and
administration
processes

GST, etc.)

Increase consideration of M&A and

divestiture options

Improve capacity/
demand planning
processes, skills and
tools

Provide staff with

better production
information and tools

Improve invoicing/
billing processes

network equipment, leased

lines, etc.)

Increase emphasis on
risk identification and
management

Improve agility and

flexibility of
governance models

Improve coordination
with vendors

Rationalize order
quantities and timing

Provide staff with

better customer
information

Improve terms on
purchased and leased
assets (PCs, servers,

Increase emphasis on
quality management
and benchmarking

Improve transport and

delivery processes/
algorithms

Improve
design and
development
processes

Provide staff with

better customer
information

Improve tracking and

recovery of indirect
taxes (sales/use, VAT,

Increase emphasis
on people/talent
development

Improve ability to
structure and
implement durable,
mutually beneficial
partnerships

Improve capital
budgeting
processes

(contractors, network
services, consultants, etc.)

Increase focus on
project quality and
risk management

Increase focus on
post-merger synergy
and cost reduction
programs

Improve demand
planning processes
and tools

Improve terms with

service providers

Improve alignment of
HR and technology
strategies with
business strategies

Improve
measurement and
reporting of
operational and
financial performance

Improve
payroll
processes

Improve tax collection

and remittance
processes

Manage materials
sourcing on a
national/global basis

Improve focus on
internal controls and
regulatory compliance

Improve alignment of
projects with program
and business
objectives

Improve operational
processes

Improve incentives
around IT/network
efficiency

Increase focus on
creditworthy customer
segments

Improve identification
of opportunities and
threats

Improve processes for

managing system
operations, maintenance and changes

(HVAC, cabling, etc.)

Increase emphasis
on preventive
equipment
maintenance

Rationalize raw
materials

Improve/implement
internal control
frameworks and
policies

Improve
provisioning/
installation processes

(servers, routers, network

capacity, etc.)

Increase emphasis
on build-to-order

Leverage breadth of
vendor relationships
to lengthen payment
cycles

Improve utilization of
service staff

(security, energy, etc.)

Increase emphasis on
design for
manufacturability and
service

Improve customer
incentives for
accelerated/on-time
payment

Improve utilization of
sales staff

(administration, security,
energy, HVAC and
maintenance)

Outsource business
functions

Improve
collaboration with
vendors/partners

Improve financial
risk management
processes

Improve sales
performance
management
methods and tools

Increase focus on
partnership, merger
and acquisition
opportunities

Strengthen corporate
governance structures

Improve
collaboration with
vendors/partners

Improve operational
risk management
processes

Improve marketing
and advertising
performance
management
methods and tools

Establish a culture
centered on
operational
excellence

Refine daysoutstanding strategy

Increase use of
flexible/expandable
production equipment

Improve contract
management
processes

(sales/use, VAT, GST, etc.)

Strategic
Assets

Increase emphasis
on continuous,
proactive performance management

Refine credit/daysreceivable strategy

Increase use of
flexible facilities

Improve salary and

benefits administration processes /
Increase employee
self-service

(researchers, information
services, advertising
channels, etc.)

Agility &
Flexibility

Increase emphasis on
enterprise-wide
program planning and
collaborative program
delivery

Rationalize and/or
refocus product
portfolio

Improve accuracy and

timeliness of tax
provision and cash
outflow forecasts

Improve retrieval
processes

Improve real estate

improvement and
deployment
processes

Improve service and

support performance
management
methods and tools

Relationship
Strength

Improve workforce
planning, dispatch
and assignment
processes
and tools

Improve
manufacturing and
quality control
processes

Improve installation/
deployment
processes

Improve management
of trade/indirect taxes

Partnership &
Collaboration

Improve focus on
higher-value vendor
relationships

Improve materials
efficiency of
production processes

Improve pick, pack

and ship processes

Improve terms with

service providers

Operational
Excellence

Tighten credit/loan
terms

Improve capacity/
demand planning
processes, skills and
tools

(computers, vehicles, etc.)

Business
Performance
Management

Improve
demand forecasting

Improve
field sales and
telesales
processes

(computers, vehicles, etc.)

Program
Delivery

Improve
demand forecasting

Improve product
conception/initiation
processes

(computers, vehicles, etc.)

Business
Planning

Improve coordination
of operational, investment, financial, M&A,
and tax strategies
across business units

Rationalize and/or
refocus product
portfolio

Defer/change timing
of capital investments

Governance

Improve service and

support processes

Improve debt and

equity management
processes

Improve terms on
leased assets

Accounts,
Notes &
Interest
Payable

Leverage credit rating

to lengthen payment
cycles and reduce
interest rates

Improve
program planning
processes

Improve terms on
leased service assets

Accounts,
Notes &
Interest
Receivable

Utilize more
efficient production
equipment

Improve
merchandise
ordering and receipt
processes

Improve service
procurement
processes

Improve terms on
leased sales assets

Work in
Process &
Raw Materials

Reconfigure facilities /
Increase utilization of
facilities

Improve inventory
receipt and storage
processes

Improve
training
processes

Improve staff
incentives around
marketing efficiency

Rationalize
production facilities

Finished
Goods

Improve focus of tax

function/department
on proactive tax
planning

Improve
production scheduling
and staging
processes

Improve real estate

selection, acquisition
and contracting
processes

(delivery services,
outsourced functions, etc.)

Accelerate or defer
income/expenses

Migrate income to
low-tax jurisdictions

Improve selection,
acquisition and
contracting
processes

(network services,
outsourced functions, etc.)

(M&A, consolidation, outsourcing, site selection, etc.)

Increase use of
cheaper service
channels

Improve credit
analysis
processes

(network services, airlines,

information services, etc.)

Rationalize and/or
refocus product and
service portfolios

Refine vendor/
supplier strategies

Improve workforce
planning and dispatch
processes and tools

(contact centers, automated

voice response, web, etc.)

Equipment &
Systems

Consolidate/
outsource logistics
and distribution
functions

(raw materials, intermediate

materials, finished
components, etc.)

(profiles, transaction
histories, etc.)

Real Estate &

Infrastructure

Increase use of lowercost production

channels

Improve identification
and discontinuation of
unsuccessful
efforts

(demographics, inquiry
history, etc.)

Merchandising

Income Tax
Management

Design products to
use cost-effective
materials

Improve
cash/treasury
management
practices

Improve execution of
market- and supplydriven promotions

Improve profitability of
R&D efforts through
utilization of tax and
economic development incentives

(central vs. local

merchandising, etc.)

Increase emphasis on
service prevention /
Reduce need for
service

Improve
strategic planning
processes

Improve product and

service lifecycle
management

Improve methods and

tools for managing
sales and marketing
performance

Refine and/or align

merchandising
strategies

Improve product
procurement
processes

Divest non-performing
and non-strategic
business units

Improve customer
service and retention
skills of staff

Improve focus on
higher-value products

Increase emphasis on
designing and
packaging
for distribution

Improve
recruitment and
orientation processes

Offer value-adding
product and service
bundles

Improve crossselling/up-selling
skills of staff

Increase emphasis on
designing for
materials efficiency

Improve real estate

design and development processes

Tailor cross-sell/upsell offers to customer

needs

Defer and reduce

federal, state and
local quarterly estimated tax payments

Rationalize and/or
refocus product and
service portfolios

Improve design,
development and
testing processes

Improve
responsiveness to
customer requests
and inquiries

(hedging transactions,
commodities trading, etc.)

Increase emphasis on
permanently lowering
the company's
effective tax rate

Materials

Service
Delivery

names, IP, etc.)

Improve use of
supply- and capacitydriven promotions

(launch through retirement)

Rationalize and/or
refocus services
offered

Rationalize and/or
realign product
development
efforts

Improve
understanding of
business unit
performance and
market values

(razors v. blades / product v.

shipping charges, etc.)

Rationalize and/or
refocus product
portfolio

Increase focus on
business insight and
forward-looking
information

Improve
competitiveness of
product and service
offerings

Coordinate pricing of
complementary
products and services

Rationalize and/or
refocus product
portfolio

Improve focus on
higher-value customer
segments and
products

Improve visibility of
customer
relationships and
interactions across all
channels

(purchases, support
requests, etc.)

Rationalize and/or
refocus product
portfolio

Rationalize portfolio of
financial services
providers

Solicit and respond to

customer feedback

Improve managerial
methods and tools

Production

Logistics &
Distribution

Increase use of
vendor-managed/
vendor-warehoused
inventory

Improve utilization of
telecom tax incentives

2004. All rights reserved. Confidential. 0104

Human
Resources

names, IP, etc.)

Improve emphasis on
product quality and
ease of service

Improve
understanding of
customer, product
and channel
profitability

Obtain exclusive
agreements with
partners

IT, Telecom &

Networking

Focus sales efforts on

higher-margin
products and services

Improve
understanding of
customer price
sensitivity

Improve brand
awareness / Elevate
brand image

Order
Fulfillment &
Billing

Increase focus on
higher-value products
and services

customer value, risk, etc.)

Sell or lease excess

capacity to other
enterprises

Sales

Customer
Service &
Support

Improve
understanding of
customer needs

(Action may apply to all processes)

Note: Many actions could logically be associated with
other or multiple process groupings. For example,
many customer and product actions are likely to have
heavy IT and HR components.

Acquire competitors

Rationalize and/or
refocus product and
service portfolios

Improve identification
of valuable customer
relationships

Other Shared / Corporate Services

(Real Estate, Procurement and Other)

Increase emphasis on
generating revenue
from company assets

(production, distribution and

sales pipelines)

Improve total
customer experience

Improve value /
Decrease prices

Marketing &
Advertising

Increase emphasis
on supply chain
management

Tailor account
management
approaches to
customer segments

(purchasing, fulfillment,
usage, support, service,
etc.)

Do What You Do Better

Price
Optimization

Increase emphasis on
customer satisfaction

Increase utilization of
modular, reusable
designs

Improve total
customer experience

Demand &
Supply
Management

Cash/Asset
Management

Provide staff with

better HR information
and tools

Improve terms with

third-party product
and service providers
(payroll, benefits, training,
etc)

Improve management
of international staff
costs

(immigration, payroll, staff

support, international equity,
etc.)

Manage payroll tax

impacts of business
initiatives

(M&A, consolidation,
restructuring, relocation etc.)

(equipment maintenance,
delivery, warehousing, etc.)

(direct and indirect tax

management)

(fixed and variable assets)

Improve breadth,
depth and quality of
financial information

Improve incentives
around product
development
efficiency

Improve collaboration
with vendors

Improve incentives
around production
efficiency

Improve cost
accounting and
allocation of shared/
overhead costs

Improve definition of
product and service
specifications

Increase use of
vendor-managed/
vendor-warehoused
inventory

Improve skills of
production staff

Improve incentives
around inventory/
distribution efficiency

Improve incentives
around merchandising
efficiency

Improve incentives
around business
planning efficiency

Improve ability to
utilize offshore cash/
assets and move
between geographies

Improve product
development
performance
management
methods and tools

Improve contracting
and negotiation skills
of purchasing staff

Improve terms
on equipment
purchases

Improve terms with

service providers

Improve terms with

service providers

Improve terms with

service providers

Improve skills of
financial management
staff

Improve profitability of
R&D efforts through
utilization of tax and
economic development incentives

Improve incentives
around procurement
efficiency

Improve terms with

service providers

Improve materials
performance
management
methods and tools

Improve management
of transfer pricing

(information services,
consultants, etc.)

(asset, budget, price/cost,

treasury, debtor/creditor,
performance, tax, risk, etc.)

Improve incentives
around procurement
efficiency

Improve incentives
around financial
management
efficiency

Optimize utilization of
available sales/use
tax exemptions

Improve terms with

financial services
providers

Utilize available
federal, state and
local employment/
training incentives

Improve management
of indirect taxes

Improve HR
performance
management
methods and tools

Improve procurement
performance
management
methods and tools

(sales/use, VAT, customs

duties, etc.)

(delivery, warehousing, etc.)

(outsourced functions, etc.)

(transport, warehousing,
etc.)

Improve logistics
performance
management
methods and tools

(profiles, transaction
histories, etc.)

Improve terms with

service providers

(LIFO, FIFO, uniform

capitalization, shrinkage,
obsolescence, etc.)

(credits, net operating

losses, capital losses, etc.)

Consider tax implications in the location/

selection of facilities

(distribution centers, service

centers, branches, etc.)

Build tax opportunities

into real estate
transactions
(income deferral, location
credits and incentives,
leasing terms, etc.)

(delivery, warehousing, etc.)

(outsourced services,
network services,
information services, etc.)

Improve consideration
of tax implications in
the acquisition and
disposition of assets

Improve terms on
merchandise
purchases

Improve terms on
leased service assets

Optimize tax benefits

associated with selfconstructed assets

Improve management
of trade and indirect
taxes (sales/use , VAT,

Improve management
of transfer pricing

Improve
merchandising
performance
management
methods and tools

Improve service
performance
management
methods and tools

(computers, vehicles, etc.)

GST, etc.)

Improve production
performance
management
methods and tools

Optimize valuation
and costing methods
for inventories

(plant, facilities, internallyused software, etc.)

Optimize expense vs.

capitalization of costs
(M&A costs, R&D costs,
etc.)

Improve tax benefits

of compensation and
benefit programs

(deferred and equity-based

comp; retirement and
healthcare benefits, etc.)

Improve identification
and application of
R&D tax incentives
Ensure adequate
documentation of
significant tax
positions

(earnings & profits, transfer

pricing, tax opinions, etc.)

Increase
use of flexible and
expandable
infrastructure

Improve understanding of stakeholder

interests (customers,

Improve flexibility
of business
processes

Develop and leverage

strong/unique partner
relationships

Improve identification
of opportunities to
increase value to
stakeholders

Improve
communication and
knowledge transfer
across organizational
boundaries

Develop and utilize

unique physical
resources

Improve ability to
integrate merged
and acquired
organizations

Improve
communication with
stakeholder groups

Improve agility and

flexibility of partner
organizations and
networks

Develop and utilize

unique human
resources

Improve identification
and mitigation of
operational risk
(people, process, technology, data, etc.)

Improve
understanding of
partner strengths,
weaknesses and
interests

Improve value
delivered to
customers

Improve product
innovation processes

Develop and leverage

political relationships
and alliances

Improve
communication
around improvement
priorities

Improve business
continuity planning
and disaster recovery
capabilities

Improve integration of
business processes
across partner
networks

Improve value
delivered to
shareholders

Improve flexibility
and versatility of IT
systems and
platforms

Develop and cultivate

good will

Improve program/
project management
methods and tools

Improve ability
to launch
improvement efforts

Improve management of regulatory

compliance

Improve quality
and speed of
communication with
partners

Improve value
delivered to
employees

Improve breadth,
depth, quality and
timeliness of business
planning information

Develop and utilize

unique information
resources (customer,

product, market, etc.)

Improve
understanding of
internal value and
market value of
business units

Improve tracking and

communication of
program/project
progress

Improve assignment
of accountability and
authority

Improve physical
security of people

Improve
management of
partner relationships

Improve versatility of
managers and staff

Develop and leverage

strong brand

Improve quality and

consistency of
performance
assessment methods

Improve sharing of
knowledge across
organizational
boundaries

Improve sharing of
knowledge across
organizational
boundaries

Improve value
delivered to other
stakeholders

Improve product,
service and process
innovation skills of
staff

Develop strong
customer
relationships and
communities

Improve monitoring
and management of
risk and compliance

Improve performance
and reliability of IT
systems/platforms

Improve integration of
IT systems across
partner networks

Improve conversion of
strong relationships
into sources of competitive advantage

Develop and leverage

intellectual capital

Improve quality of
information provided
to stakeholders

Develop and utilize

unique production
resources

shareholders, regulators,
employees, suppliers,
partners, alumni, etc.)

(facilities, land, etc.)

(thought leaders, managers,

subject matter experts, etc.)

Increase use of justin-time procurement

Improve management
of credit/loan portfolio

Improve identification
and assessment of
risk (strategic, operational,

Improve assessment
and benchmarking of
credit/receivables
performance

Improve risk planning,

mitigation and control
approaches

Improve identification,
assessment and
execution of
M&A/divestiture
opportunities

Improve assignment
of resources to
projects

Improve companywide monitoring and

management of risks

Improve ability to
develop and spin-off
new businesses

Improve involvement
of operational staff in
project delivery

Improve maintenance
of IT systems

Improve breadth,
depth, quality and
timeliness of managerial information

Improve focus of
company resources
on high-priority
initiatives

Improve identification
and management of
program/project risks

Increase accountability of business

unit leaders for tax
impact of decisions

Improve breadth,
depth, quality and
timeliness of business
information

Increase utilization of
IT systems

Ensure tax planning

activities and tax
filings comply with
regulatory environment

Improve anticipation
and understanding of
current and potential
regulations/legislation

Dynamically cancel or
redirect ineffective/
obsolete programs
and projects

Improve benchmarking of global effective

tax rate against
industry peer group

Improve access to
and distribution of
business information

Improve effectiveness
of legislative/lobbying
efforts

Improve management
of vendors/service
providers

Improve breadth,
depth, quality and
timeliness of performance information

Improve security of
applications, systems
and data

Improve asset
development skills of
management and
staff

Improve incorporation
of risk analysis in
business planning

(internal and external risk)

Continuously track
and manage the
realization of project
benefits

Improve access to
and distribution of
performance
information

Improve
process innovation
skills of staff

Improve incentives
around asset
development

Integrate tax opportunities and issues

into business planning
processes

Improve management
of organizational
change in support of
initiatives

Improve career
options and paths

Improve depth
and breadth of staff
technical skills

Develop and utilize

unique tax expertise

Improve leadership
and management
skills of executives

Improve program/
project management
skills of staff

Align management
and staff incentives
with company
performance

Improve recruiting
effectiveness

Improve executive
development,
recruiting and
succession planning

Improve vendor
management skills of
staff

Improve monetary
and non-monetary
recognition of staff
contributions

Improve mechanisms
for collecting and
implementing
employee ideas

Improve talent
management models
and programs

Build innovation and

improvement into
rewards and
incentives

Divest low-utilization
equipment

Improve terms on
merchandise

Improve terms
on infrastructure

Utilize more efficient

IT systems

Consolidate
inventory

Improve terms on
materials

Divest low-utilization
infrastructure

Utilize more
flexible/expandable IT
systems

Increase use of
vendor-managed/
vendor-warehoused
inventory

Increase use of
vendor-managed/
vendor-warehoused
inventory

Divest low-utilization
IT systems

Improve terms on
production equipment

Improve terms on IT
systems

investment, financial, compliance, data/privacy, etc.)

Clarify governance
roles and responsibilities (delegation of
authority, segregation of
duties, etc.)

Strengthen training/
education of board
and audit committees
Align compensation
and incentive systems
with strategies, values
and ethics

(strategic, operational and

financial risks; regulatory
and tax compliance)

(applications, equipment,
networks, etc.)

Improve
partnership and
collaboration skills of
staff

Improve value
delivered to partners

(vendors, channel partners,

etc.)

(public, alumni, analysts,

etc.)

(copyrights, patents,
trademarks, etc.)

(accuracy, timeliness,
transparency &
predictability)

(methods, equipment,
facilities, etc.)

Improve mechanisms
for soliciting and
addressing
stakeholder feedback

Develop and utilize

unique IT resources

(applications, networks, etc.)