How Can I Determine Value to My Business
How Can I Determine Value to My Business
Business owners, CEOs, and leaders often grapple with assessing the value of inputs TO their business. For example, when assessing a new supplier relationship, it is good practice to understand the needs of the business and how a given supplier can deliver value in the context of those needs.
We see assessing value as critical when considering taking on new customers/customer segments, evaluating the preferred candidate for a vacant position, evaluating software solutions, and other business improvement ideas.
Visage Growth Partners uses a super pragmatic approach to this. We call it the CISQO framework.
The "CISQO" Framework
The "CISQO" framework assesses your business needs against the following business factors: Cost, Innovation, Service, Quality, Occupational Health and Safety and Environment. It provides a holistic view of what adds value to your business, emphasising the importance of balancing financial achievements with strategic risk mitigation.
We encourage our clients to use these criteria with a "balanced scorecard" approach. This assumes that all elements can not be equal and must be prioritised. For example, for a maintenance company, the quality of parts supplied to them may be far more important than the cost of the parts they buy in and use in their maintenance duties. Similarly, they may find that innovation of their suppliers is also paramount, as they can provide quicker, safer, and longer-lasting suggestions for the way in which maintenance can be performed, as well as how enduring the "fix" may be.
Cost
Effective cost management is pivotal. It's about minimising expenses and optimising them to support sustainable growth and quality enhancement.
Innovation
The capacity for innovation determines a business's ability to adapt and thrive in evolving markets. It's a key driver of long-term value, setting the foundation for competitive advantage.
Service
Exceptional service quality not only retains customers but also attracts new ones. It reflects the business's commitment to excellence and its impact on market reputation.
Quality
Product or service quality is intrinsically linked to a business's value. High-quality standards ensure customer satisfaction and loyalty, which are crucial for revenue stability and growth.
Occupational Health and Safety
Focusing on occupational health and safety demonstrates a business's commitment to its employees, reducing risk and enhancing productivity.
An Overlooked Element of Value
Risk mitigation is often the silent element in determining the value of a business. Identifying, assessing, and addressing potential risks safeguards the business and enhances its value by ensuring stability and reliability. Effective risk management strategies can significantly reduce potential threats to operational continuity and financial security, thereby increasing the business's attractiveness to investors and stakeholders.
Try using the CISQO framework for the next decision you make about your business. It's a great way to get some super pragmatic "forced thinking" into your team and makes for a rich and robust subsequent discussion.
At Visage Growth Partners, we specialise in demystifying business growth. To explore how we can assist, contact our team of growth advisors.
Hello, I’m Adam. I believe that we can create incredible companies everywhere, by replacing the fear, doubt, and insecurity typically held AND conveyed by leaders, with authenticity, excitement, deep fulfilment, and an abundance mindset.
Having worked in corporate for over 20 years and made major contributions to some huge successes. I always felt that something was missing…I wasn’t living in line with my purpose.
Visage Growth Partners was born to help others achieve their dreams, the ultimate “pay-it forward”. We help others in order that they can make incredible contributions in their lives and the lives of others - and it’s the most personally and professionally fulfilling life we could lead.
At Visage Growth Partners, we believe a business cannot grow beyond the level of the leadership capability. Whilst we can help you grow your business strategically and operationally, we know that real growth comes from igniting the collective power of your leadership team and empowering the team to work together and inspire real success professionally as well as personally.
It is the magical blend of extensive industry experiences, access to world’s best practices in business growth methodologies, and the ability to engage and support senior leadership teams that has Visage Growth Partners deliver exceptional results for our clients. I look forward to meeting you and hearing more about you and your business and how we can clear the pathway to successful growth for you and your business.