finding the value gap
There are two sources of cash that we are most concerned with helping your organization to find: the cash that is hidden within your business in the form of wastes and ineffiencies (sometimes referred to as stranded cash) and that additional cash which you have the technical and commercial ability to gain in the market place but cannot see.
Our simple process exposes the cash losses within your on-going operations and those within your markets and helps you keep those front and center to guide all improvement activities. **It is interesting to note that this value is almost impossbile to see at an actionable level on P&L statements.
Our experience is that the operational value gap tends to be significant, often up to 10% of Net Sales. And as a general guideline the addressable market value gap can be ten times or more than that.
Understanding clearly what your opportunity is can be the catayst for all other transformative change. It is an exercise worth doing. You can find Module 2: Segmentation - Finding the Value Gap in the GroEngine Shop to guide your team through this.