Methods and concepts for Value Based Management (VBM)
Steps Ahead… Black Hole Analyses™
For a Quick Scan to find quick wins in value improvement, we use our Black Hole Analyses™. This is a very practical and powerful approach based on our wide experience in business value improvement through the years. The framework is simple but effective - create better business value by eliminating:
- the worst clients
- the worst products/services
- the worst vendors
And of course by eliminating the combination: the Black Hole.
The Black Hole is where the company profit goes down the drain...
Constraints for this analyses are:
- criteria: margin, terms of payment, cost level, volume (PxQ)
- strategic value of clients, products/services and vendors
- synergy between clients, products/services and vendors