Companies executing a Value-Driven Strategy achieve success by defining, measuring, and managing value creation at every level of their business practice.  Value is always quantified in the ‘eyes of the customer’ meaning that the benefits must be relevant and important to those accepting the service or solution. 

 

Value comes in many different forms but in financial terms is expressed as the incremental change in revenue less the costs of producing the solution. 

 

Benefits – Costs = Value

 

While organizations have many ways of providing meaningful benefit to their stakeholders or customers, a value-driven strategy seeks to maximize their capability to produce economic impact as a primary goal. 

 

Strategy is more than a series of loosely connected tactics.  Strategy is the coordinated effort of realizing the organization’s vision.  A value-driven strategy segments that vision into sequenced phases described by a  multigenerational plan.  Each phase is achieved through a unique set of measurable goals based on capability, growth and quantifiable results.  Individual tactics (projects, services, events) are the actions that produce results through their impact.  Every tactic must be associated with a strategic goal and these collections of tactics are managed through strategic portfolios.  A value-driven strategy is a living structure that aligns the organization’s actions through clear direction and constant focus upon advancing its strategic goals toward end-state of vision fulfillment.