Value Peformance Checklist

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This article is supplied to GrownUps by Northington Partners

What do you need to improve shareholder value?

Strategic Management

• Alignment of stakeholders
• Alignment of management responsibilities and accountabilities
• Appropriate ownership structure
• Operating strategies consistent with mission and vision
• Understand what the business is worth today
• A sound understanding of value drivers
• Understand potential value in 5 years time
• Sound shareholders' agreement
• Clearly defined exit strategy

• Strategically sound business plan
• Integrated cash-flow planning model
• Product profitability analysis
• Customer profitability analysis
• Project approval and priority process
• Relief from onerous contracts
• Overhead expenditures that add value
• Resolution of financing pressures
• Re-capitalisation of the business

• Key management metrics
• Information not data to manage the business
• Business units that communicate effectively
• Effective stakeholder communication

• Committed sponsorship from the top
• Defined deliverables, metrics and timelines
• Sound business case
• Defined team roles
• Experienced project manager

• Optimal utilisation of scarce resources
• Identification of excess assets
• Conversion of excess or under-performers to cash
• Realise value of tax losses
• Convert deal synergies to cash
• Retain key employees
• Resolve business disputes and litigation
• Ownership dispute resolution

Roy Austin - Northington Partners - Level 13, 52 Swanson Street, Auckland, New Zealand

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