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| David Cuykendall Click for Index Page |
Key strategic goals
- To improve the theoretic and collective knowledge of operations and regular competent practices. The intent is to improve competence and reduce the overall vulnerability of the enterprise along with the individual vulnerabilities of each of the enterprise's business and operating units. (i.e., decreasing the collective and individual competencies not used, and competencies required but not possessed).
- To improve the economy of the enterprise (i.e., by following the principle of the "weighting" of resources to the supporting and main efforts of the enterprise in the most effective way possible).
- To improve the soft and hard synergies of the enterprise: Hard synergies involve capital optimization where assets like property, plant, and equipment are rationalized through combination. Soft synergies are realized through better integration of human capital; improvement in the leverage of intangible capital through proprietary secrets; better management of working capital, the cost of capital, and accounts receivable (e.g., collection periods, AR turnover, etc.); and also optimizing debt to equity levels.
- To build the proprietary value of the hidden infrastructure (i.e., the proprietary infrastructure composed of modes of operation and management that are not visible to external actors).
- To develop regular procedures for the management of non-routine measures. Non-routine measures are developmental actions specifying what is to be implemented by whom, when, and why on the basis of a priority action plan that is measured by indicators of qualitative or quantitative nature of how potential is being created, how dysfunctions are being prevented, how down surge spirals are being uprooted, and how employees are being multi-skilled. Further, non-routine measures address the entropy and inertia of a business or operational unit by (1) reconstitution measures to restore requirements and available resources; (2) regeneration measures to restore a unit to full operational capability as rapidly as possible; and (3) reorganization measures taken to shift internal resources within a degraded unit to increase its level of effectiveness.
Cohesion
The focus, clarity, and synchronization that optimally economizes the process, structure, and concerns of enterprise:
- Process refers to the transformations that occur in the process of the work. These transformations might be part of a flow of goods, money, equipment, workers, documents, or data with emphasis on the process by which different roles influence one another.
- Structure refers to aspects of the work context that are slow to change. These might be the organizational hierarchy of the enterprise, geographic localities, physical equipment, and so on.
- Concerns address the different motivations and pressures that give rise to the different perspectives stakeholders have and the tensions that result.
A transparent chain from strategic intent through to the baseline that establishes the collective references with which the four modalities of an EPG are performed:
- Fiduciary accounting and reporting (i.e., statutory GAAP and tax compliance accounting and reporting);
- Core profit and loss accountability accounting;
- Operational (i.e., primarily cost) monitoring and control;
- Executive (i.e., entrepreneurial and strategic) monitoring and control.
The consolidation of skills and concepts ensuring the kinds of overarching themes, planning, processes, controls, and governance that mobilize and tailor the emotional, cognitive and behavioral potential (i.e., the entrepreneurial energy) with which the enterprise, its divisions, and teams pursue their goals.
Value improving proposals
Statements setting out a description of proposed improvements, the advantages and disadvantages of implementation and its impact on cost, time and performance. These compose the totality of the enterprise's investment, or segment thereof, in the changes required to achieve its strategic EPG objectives involving:
- Management of EPG initiatives: the enterprise's coordinated collection of strategic processes and decisions that together enable the most effective balance of changes and business as usual;
- A delivery plan for EPG initiatives: the enterprise's tactical information shaping the planned delivery of EPG initiatives based on an overarching strategy;
- An EPG management framework: a central repository containing a description of the agreed EPG practices adopted by the enterprise and its governance arrangements;
- The governance of the EPG's decision-making process to ensure answers to the following key strategic questions: Are we doing the right things? Are we doing them the right way? Are we realizing the benefits?
The systematic methods that define what value means for the enterprise. For example, the EPG aims at improving the value for money ratio involving the ratio of benefits, monetary or non-monetary, to investments made or resources committed, and the shaping of entrepreneurial value drivers (i.e., the functions that must be delivered to contribute to entrepreneurial objectives and that must, in aggregate, be necessary and sufficient to achieve the objectives in full).
Value metrics
The attributes used for measuring performance against value drivers addressing:
- Value profiles: representations of the relative importance of primary value drivers to those responsible for the financial performance of enterprise assets;
- Value indexes: measures of how well various options satisfy individual value drivers or the aggregate of all value drivers measuring the satisfaction of those responsible for the financial performance of enterprise assets;
- Value scores: the product of the performance of an EPG option or proposal, assessed on a scale of 1-10, and the weighting of the value driver against which it is being assessed;
- Value trees: diagrams that show the relationship between, and the hierarchy of value drivers;
- Utility values: the value of an EPG option or proposal that is the primary requirement that a stakeholder has of that option or proposal, which must be addressed for the option or proposal to have any worth.
