Restructure processes that are not generating customer value

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Kaplan and Norton, great thinkers in management, often say that what cannot be measured cannot be managed . So if you don’t measure your company’s processes, you won’t be able to manage them, let alone know which ones are generating value for the customer and which ones aren’t.

It may not be possible to measure the effectiveness of all processes with exact numbers, but it is essential that you identify, with the construction of the value chain, the profitability of the processes and their relationship with the generation of value. If you find a process that is not adding value to the customer, you will need to restructure it, that is, rethink how activities are done to find a more suitable way. After all,

All work in the company must be linked to the generation of value

Returning to what we talked about in the previous topic, if the processes are not profitable, if they are not generating enough value to bring profits to the company, it does not make sense to continue with them. Visit https://www.valuenetworksandcollaboration.com/evergreen-wealth-formula-review/  for the best results in this case.

Enhance processes responsible for generating value

In addition to identifying processes that do not generate value, the value chain is able to identify those that do. Bearing this in mind, the organization can think of enhancing the processes responsible for generating value: strengthening them with more technologies, training and incentives, so that the positive pace is maintained.

Assist in strategic planning

The value chain can be an important tool to help structure an organization’s strategic planning, after all, it is by understanding the present that we can plan for the future. As we mentioned, the value chain can help to identify processes that need to be restructured and that can be leveraged. This shows some ways in which the organization can follow in its strategic planning.

Provide visibility on competitive advantage

The competitive advantage of an organization is what sets it apart from the rest, which is possible from the creation of value for customers. Basically, the more value an organization generates, the greater the competitive advantage and the greater the likelihood that it will be financially profitable.

Do you know where the value chain enters this story?

It’s simple: the value chain will demonstrate the company’s business model , that is, the way it organized itself to do things. A business model that adheres to the market can become an organization’s competitive advantage. Uber, for example, set out to create value for customers by launching a transportation service that connects users and drivers. This business model, hitherto underused, has become a powerful competitive advantage.

 

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