MODULE 1 BUSINESS MODELS. Value orientation, Archetypes, Intangibles
What are a company’s fundamental value orientation and creation choices? How can these be recognized? This module describes the strategic business model choices that define and characterize any organization.
We will review the foundational articles that have provided an understanding of the substantial strategic and operational differences between business models.
MODULE 2 THE RESOURCE BASED VIEW. Resources, Competencies, Capabilities
The resource based view of organizations leads us to a broader view of organizational assets as bundles of resources, competencies and capabilities that organizations invest in creating and building as sources of competitive advantage. A managerial perspective to what is managed and how it is managed is a key to successful value creation for both clients/ c ustomers and share owners.
MODULE 3 INTELLECTUAL CAPITAL. Accounting for IC, Competencies, Capabilities
The accounting assumption that resources deplete with use does not necessarily hold for intellectual capital
resources relationship capital, structural capital and human capital . This makes it impossible to ascribe a value for the resource. So, balance sheet recognition
becomes systematically very difficult, if not impossible. In this module we describe the accounting discipline’s dilemma and how to finesse it.
MODULE 4 WEIGHTED AVERAGE COST OF CAPITAL. Weighted Average Cost of Capital, Opportunity cost, Calculation, Application
The weighted average cost of capital (WACC) is a fundamental reference point for any corporate financial decision. It is the sprit level to tell whether a company is creating value for its shareowners. In this module you will locate and/or calculate the elements that comprise the WACC for a company and estimate its value creation performanc e.
MODULE 5 ECONOMIC PROFIT PRIMER. Economic Profit, Sustainable competitive advantage, Competitive advantage fade
Economic profit is different from accounting profit in that it recognizes and includes the required return for share owners in its calculation; something that
accounting profit does not do. It measures the residual return to the owners of capital. In this module we examine the logic of economic profit and its application
to listed and private companies as well as its application to other forms of organization such as government agencies.
MODULE 6 UNBUNDLING ENTERPRISE VALUE. Unbundling Enterprise Value, Current Value, Future Value, Expected Improvement
Economic Profit has a further use apart from
understanding whether a company is creating or
destroying shareowner wealth. We can unbundle a publicly listed company’s Enterprise Value to establish investor expectations as to the company’s future cash flow growth and use this insight to baseline strategic plan initiatives for their contribution.
MODULE 7 THE NEW MANAGEMENT ACCOUNTING. The New Management Accounting, IC recognition choices, Managing for value, CoA switches
Management accounting provides with the flexibility to manage according to what matters; in particular the management of intellectual capital value drivers. Capitalizing and amortizing expenditures that would be normally expensed when such expenditures represent investments in competencies and capabilities
fundamental to the sustainability of the company’s business model can be arranged to reflect responsibility and accountability for returns on those investments.
MODULE 8 VALUE DRIVER TREES. Value Driver Trees, VDT construction and structuring, Granularity
In many instances, managing for value creation cannot be prosecuted effectively through conventional summary accounting reporting structures and KPIs . A n operating view is constructed that considers both income statement and balance sheet adjustments to achieve this The company’s management reporting roll up is established based on the company’s particular sequences of geography, product and customer to gain line of sight to the company’s end customers.
MODULE 9 VALUE CREATION IMPLEMENTATION CHALLENGES. Value creation implementation challenges, Mindset characteristics, Impediments, Organizational structures
Implementing a value creation mindset requires a vision of how the organization can be managed. The reporting structure of the organization is the foundation for managing for value. This should be augmented by an integrated financial management and accounting system. Such a situation is seldom observed. This module will explore the origin and impact of some of the usual implementation challenges.
MODULE 10 PERFORMANCE MEASUREMENT. Performance measurement logic, Balanced Scorecard, Performance measurement framework
Performance measurement is the bane of all organizations. There is continual frustration over what KPIs to use, where, how they are to be interpreted and what levels of performance to accept. In addition, there are the issues of how to interpret trade-offs in various performance levels achieved and the dysfunctional effects of goal and KPI means-end inversion.
MODULE 11 BUSINESS ECOSYSTEMS. Business ecosystems, Ecosystem building blocks, Post hoc explanations
A business ecosystem implies that the whole is more than the sum of the parts. It also means that an organization having some of the parts will not mean its has a complete business ecosystem. Businesses that have successfully created ecosystems have created an enormous competitive advantage, often lasting for decades.
MODULE 12 TOOLS FOR COMPETITIVE ANALYSIS. Analytic tools, Moats, Competitive analysis / Internal analysis
There are a number of useful tools for competitive analysis. Their use can be elementary or insightful. In this module we will explore the use of several strategic analytic tools in understanding the strength of an organization’s competitive advantage.
ONLINE EXAMINATION Automated assessment. 90%+ certification
Multiple choice. Online. Each exam a unique
combination of questions.