Business Evolution
Over the past 15 years, Valor’s professionals have developed a process used to identify and execute its business evolution plan. The process begins with the selection of a suitable target, develops through due diligence, and continues with the implementation of a business evolution plan using Valor’s organization as consultants operating in partnership with management. The result is an organizational change capacity typically found only at larger organizations.
Business Evolution Plan Goals:
- Increase revenue growth rates
- Improve returns on net assets
- Improve returns on invested capital
- Increase profit margins
- Customer and channel improvements
- Focus on strategic direction
- Maturation of human resources
- Improve information and lean operations systems
- Supply chain efficiency
- Enhance market position
Successful implementation of the business evolution plan requires the alignment of three elements: fundamental demand drivers; human capital incentives; and processes and systems to support growth and enhanced return on capital. Valor's implementation process establishes each of these elements. Early involvement in developing the business evolution plan is critical to generating organizational buy-in. Valor begins planning during the due diligence process by encouraging an understanding of return on capital, constraint management, and lean systems that provide management with a common language. Valor then develops basic business metrics and a plan with management using this common language. Immediately post-closing, the business evolution plan provides a common point of focus for the team. Valor works with management in a consultative approach throughout the implementation process. Management is provided with guidance and resources to build focused project teams organized to meet specific goals, tasks, and timelines. The final critical component of the business evolution plan is aligning the incentives of management with Valor.
