High-performance businesses tend to share common traits. They focus on the evolving needs of targeted customers; they evolve their own core competencies; and they relentlessly pursue perfection in how they execute. However, mastering all three can be difficult, especially as an organization grows in size and complexity. Over time, the key elements that make a company successful and give it its lifeblood can become lost amid the functional silos, clutter and inward focus that often accompany growth.
Prime Value Chain (PVC) analysis can help to realign management to key priorities, break down functional silos, and prioritize improvement efforts to drive performance and deliver business outcomes. PVC is not an industry process model. It is a structured, current state, consolidation of all activities and capabilities that are associated with a given business outcome. The company’s core purpose sets the direction.
The benefits
One key output of PVC analysis is the development of a transformation roadmap; an identification of opportunities and a prioritization of the initiatives. Other benefits can include:
- Establishing a “true north” for reaching strategic objectives, independent of existing organizational boundaries and bureaucratic constraints.
- Illuminating the core activities that can become obscured over time by functional structures, singular process ownership and organizational bureaucracy.
- Helping identify the optimal portfolio of improvement opportunities, which will likely be cross-functional organizational opportunities.
- Aligning stakeholders, breaking through silos and generating alignment on a path forward to implementing performance improvement projects with a strong strategic impact.
- Serving as a catalyst toward becoming a performance-oriented organization—removing ambiguity about how value is created, delivered and by which accountable groups and individuals.
For more insights, download the full report Prime Value Chain Analysis: Understanding Your Organization’s Critical Path to Value
