Operational efficiency has many tools that are part of a "top-down" approach, i.e., they generally calculate the real return on investment once the project is completed.

 

If these tools are necessary for the implementation of a system of excellence, a so-called "bottom-up" approach can be considered. This involves defining the desired return on investment by diagnosing the company's value chain and deducing the projects to be carried out to achieve this objective.

 

The Value Hunt workshops propose to carry out this diagnosis to isolate the main profitability levers of the company and to define the action plan that will allow the optimization of these levers.

 

A Value Hunt workshop is an intensive initiative, aimed at a sustainable increase in the profitability and/or value creation of the company.

 

Starting with a diagnosis of the company's value chain, the objective is to determine which products and expenses, internal or external, have the greatest impact on the result. Once these levers have been determined, they will be analyzed to define their real potential for optimization, and a quantified objective will be set. Finally, brainstorming sessions will be used to define and select the projects to be carried out to reach this objective.

 

 

Many of the levers of operational excellence are "top-down" approaches. These approaches are necessary because they lay the foundation for an efficient organization, even if the real results will only be visible after the fact. But standardizing, optimizing costs and processes, and establishing a continuous improvement dynamic is bound to have a positive impact on the long-term result.

 

Value Hunt workshops propose the opposite approach, which we call "bottom-up": define the return on investment (ROI) that you expect and deduce the optimization projects to be carried out to achieve it. These approaches are an ideal complement to traditional operational efficiency approaches, since they allow:

 

 

These workshops fit perfectly into an operational efficiency system. Combining "top-down" and "bottom-up" approaches makes it possible to build a complete and effective strategy.

 

 

Studies have shown that reducing payroll or overhead costs can reduce costs and increase profitability, but ultimately has a limited impact over time. Indeed, reducing headcount during a crisis can lead to short-term gains, but risks creating a lack of useful and competent resources during the recovery. Similarly, overhead costs cannot be reduced indefinitely.

 

Thus, increasing profitability and value in the long term often requires initiatives that affect the company's revenues or external costs. Also, the actors concerned are more customers and suppliers than employees.

 

Depending on the sources of income or expenses, maximizing profitability can take different forms:

 

 

It is important to ensure that the project carried out allows for action to be taken on the company's main profit drivers.

 

 

A strategic plan sets the direction for the company over three or even five years. In contrast, the strategic planning processes of large companies are often highly formalized, with tight deadlines and far in advance of the implementation date. As a result, these plans are very often internally focused, and forget the fundamental questions:

 

 

A Value Hunt workshop focuses on the present but aims to answer these questions and provide pragmatic solutions that will have visible results on P&L in the first year.

 

A Value Hunt workshop allows the company's strategy to be challenged. It allows the company to address issues not covered by the strategic plan and to deal with a particular area by aiming for short-term results rather than a multi-year vision. These workshops are therefore the ideal complement to the strategic planning exercise.

 

A successful workshop requires creativity, persistence, an ability to change, and management sponsorship.

 

It must be an offensive tool, allowing for quick results, and allowing for the challenge of the strategy put in place by the company.