The core business of Impulssum is all about the strategy around Value Based commercial & financial Excellence. The most important thing in Value Based Management is that it starts with the Value your customer wants and expects. Value Based Management is also called customer-focused management, which means that companies base their commercial activties on the customer needs. Value Based Financial Management on the other side means that all activities that are performed should increase the Valuation of the company. Both focus areas (Customer Value & Company Value) should be transformed into activities and the entire organization should work together to achieve these, including communications and operations. A Value Based Management strategy is oriented towards the longer term success of your company.
For whom is Value Based Management interesting?
The Value Based Management methods can be applied to all markets, products and services. It helps unique products and services to stand out even more, but also helps commoditized products and services to find a competitive edge again. Likewise, it optimizes the financial performance as well as financing metrics of a company. You need to know what your customers needs are and direct your organization towards these values. You not necessarily need to be different than competition, but be the best in delivering exactly what your customers needs are. The perceived value customers allocate to your products and services shows the worth that customers are willing to accredit to it and hence consequently their willingness to pay. That Value for Money perception is what needs to be optimized and balanced against the financial metrics to optimize the Valuation of your company. Next to a longer term view on monetization, Value Based Management also allows to identify the best short-term monetization and financial optimization potentials such as Working Capital improvements.
Key points for Value Based Commercial Excellence
When you are using the Value Based Management strategy, the value of your product or service is not the only thing you should determine to let your strategy be successful. It is also important that you have a streamlined Value communication with your customers in every touchpoint, and build a strong relationship with them. In addition, you have to continuously collect feedback from your customers to get to know what they are looking for, and know how much they want to pay for it. You have to stay in close contact with your customers, so you can always respond to their needs quickly and well before competition.
Value Based Management by Impulssum and Value Base
Are you interested in the Value Based Commercial & Financial Excellence approach for your company? Impulssum and Value Base have already helped many companies, corporates, medium-sized companies as well as Scale-ups, to implement the Value Based Management method successfully. Download our whitepaper about Value Based Commercial & Financial Excellence for more information about this successful management strategy. Are you ready to create impact together? Contact us through the button below!