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Value Peformance Checklist

What do you need to improve shareholder value?

northington partners

This article is supplied to GrownUps by Northington Partners

What do you need to improve shareholder value?

Strategic Management

  • Alignment of stakeholders
  • Alignment of management responsibilities and accountabilities
  • Appropriate ownership structure
  • Operating strategies consistent with mission and vision
  • Understand what the business is worth today
  • A sound understanding of value drivers
  • Understand potential value in 5 years time
  • Sound shareholders' agreement
  • Clearly defined exit strategy

Financial Management

  • Strategically sound business plan
  • Integrated cash-flow planning model
  • Product profitability analysis
  • Customer profitability analysis
  • Project approval and priority process
  • Relief from onerous contracts
  • Overhead expenditures that add value
  • Resolution of financing pressures
  • Re-capitalisation of the business

Information Flows

  • Key management metrics
  • Information not data to manage the business
  • Business units that communicate effectively
  • Effective stakeholder communication

Project Leadership

  • Committed sponsorship from the top
  • Defined deliverables, metrics and timelines
  • Sound business case
  • Defined team roles
  • Experienced project manager

Asset Productivity

  • Optimal utilisation of scarce resources
  • Identification of excess assets
  • Conversion of excess or under-performers to cash
  • Realise value of tax losses
  • Convert deal synergies to cash
  • Retain key employees
  • Resolve business disputes and litigation
  • Ownership dispute resolution

Print Checklist

Roy Austin – Northington Partners – Level 13, 52 Swanson Street, Auckland, New Zealand