Deloitte Enterprise Value MapTM

(Practical paths to increase shareholder value)

It’s easy to say shareholder value is important.
Not so easy to make it influence the decisions
that are made every day: where to spend time
and resources, how best to get things done, and,
ultimately, how to win in the competitive
marketplace.
This Map is designed to accelerate the
connection between actions you can take and
shareholder value. It is not rocket science and it
is not complete, but it can jump-start the
process of focusing on the things that matter
most and then choosing practical ways to get
them done.
Here are two simple ways to use it:
Start at the top. Working your way down,
at each step ask yourself, How will we
improve this? This will help ensure that your
tactics support your objectives.
Start at the bottom. Working your way up,
at each step ask yourself, Why are we doing
this? This will help ensure that every tactic
leads to shareholder value.

Revenue Growth Operating Margin Asset Efficiency Expectations

(after taxes)

How Value is Created

(Value Drivers)

Selling, General & Cost of Goods Sold Property, Plant & Receivables
Volume Price Realization Administrative (COGS) Income Taxes Equipment Inventory & Payables Company Strengths External Factors
(SG&A) (PP&E)

Improve Improve Improve

Retain and Grow Current Leverage Income- Improve Improve Improve Improve Improve Improve
Acquire New Customers Strengthen Pricing Customer Interaction Corporate/Shared Services Development & Production Logistics & Service Income Tax PP&E Inventory Receivables & Payables Management & Governance Improve
Customers Generating Assets Efficiency Efficiency Efficiency Provision Efficiency Efficiency Efficiency Efficiency Effectiveness Execution Capabilities
Efficiency
What You Can Do
(Improvement Levers: Business Processes,
Assets and Organizational Capabilities)
Product & Demand & Customer Order Procurement Work in Accounts, Accounts, Business
Marketing & Service Account Cross-Sell/ Retention Cash/Asset Supply Price Marketing & Sales Service & Fulfillment & IT, Telecom & Real Estate Human (Excluding Production
Business Financial Product Materials Production Logistics & Merchandising Service Income Tax Real Estate & Equipment & Finished Process & Notes & Notes & Governance Business Program Performance Operational Partnership & Relationship Agility & Strategic
Sales Innovation Management Up-Sell Management Management Optimization Advertising Support Billing Networking Resources Materials & Management Management Development Distribution Delivery Management Infrastructure Systems Goods Raw Materials Interest Interest Planning Delivery Management Excellence Collaboration Strength Flexibility Assets
Merchandise) Receivable Payable

Consolidate and/or Consolidate and/or Improve coordination Increase emphasis on

Rationalize targeted Implement integrated Increase emphasis on Strengthen corporate of operational, invest- Increase emphasis Establish a culture Increase focus on
Increase focus on Increase focus on Increase focus on Increase focus on Increase emphasis on Rationalize and/or Rationalize and/or Differentiate treatment Consolidate or Manage procurement align business align financial Rationalize and/or Rationalize and/or Rationalize and/or Rationalize and/or Rationalize and/or Rationalize and/or Rationalize and/or Rationalize and/or Rationalize and/or Rationalize and/or enterprise-wide Increase focus on Increase focus on
Change What You Do high-value/high-
potential customers
Broaden product and
service offerings high-value/high-
potential customers
high-value/high-
potential customers
high-value /high-
potential customers
generating revenue
from company assets
Acquire competitors refocus product and
service portfolios
Rationalize targeted
customer segments
markets and customer
segments
refocus product and
service portfolios
of customers/
segments
applications across
organizational
Consolidate company
real estate/facilities
outsource recruitment
functions
on a national/global
basis
planning,
management and
planning,
management and
refocus product and
service portfolios
refocus product
portfolio
refocus product
portfolio
refocus product
portfolio
refocus product
portfolio
refocus services
offered
permanently lowering
the company's refocus product and
service portfolios
refocus product and
service portfolios
refocus product
portfolio
refocus product
portfolio
Refine credit/days-
receivable strategy
Refine days-
outstanding strategy
governance structures
(composition, selection,
ment, financial, M&A,
and tax strategies
program planning and
collaborative program
on continuous,
proactive perform-
centered on
operational
partnership, merger
and acquisition
stakeholder
relationships
business agility and
flexibility
Increase focus on
strategic assets
boundaries effective tax rate roles, etc.)
across business units ance management excellence opportunities
reporting functions reporting functions delivery
- What you provide Increase focus on Increase focus on Increase emphasis on Increase use of lower- Consolidate or Consolidate or Improve alignment of Consolidate and/or Increase emphasis on Refine and/or align Increase emphasis on Integrate tax oppor- Increase emphasis on Coordinate Coordinate Improve communi- Improve alignment of Establish process Establish Improve identification Establish
Increase focus on Increase focus on Increase emphasis Rationalize and/or Rationalize and/or Improve focus on Consolidate or Increase emphasis on Increase emphasis on merchandising Develop business cation between the customer, product, Establish program/ Improve effectiveness Establish agility and
- Whom you target and serve most profitable
R&D, product
innovation, and
Rationalize
customer portfolio
most profitable
Increase emphasis on
customer retention
developing and
protecting intellectual
on differentiated
differentiated pricing
across customer refocus product and refocus product and segments with lower cost delivery/
installation channels
Rationalize IT
application portfolio
outsource design and
development
outsource learning
and development
outsource
business unit
strategies with
align financial
accounting and
modular, extensible, designing for Improve focus on
higher-value products
designing and
packaging strategies
service prevention /
Reduce need for
tunities and issues
into business planning
models with low real
Outsource business
functions
Develop low-Inventory
business models
designing for
manufacturing
management of
credit/receivables
management of
payables across board, management, advertising, sales, project delivery as a of organizational
improvement and
innovation as key
cross-company
collaboration as a key
of stakeholder groups
and establishment of
flexibility as key development of
strategic assets as a
products and services products and services products and services service portfolios service portfolios average cost-to-serve procurement functions scalable designs materials efficiency (central vs. local estate requirements shareholders and the service, support, and key competency structures competencies
- How you compete product leadership capital segments (self-service, partners, etc.) functions functions enterprise strategies analysis functions for distribution merchandising, etc.) service processes efficiency across business units business units
public fulfillment strategies
competencies competency priorities key competency

- Where you deploy resources Increase focus on Increase emphasis

Increase emphasis on Increase focus on Increase focus on Improve focus on Increase focus on Rationalize and/or Increase use of lower- Differentiate service Increase use of lower- Consolidate IT, Consolidate or Consolidate or
Improve alignment of
organization struc- Improve alignment of Consolidate or
Rationalize/ Increase emphasis on Refine/align Manage purchasing Improve focus on
Maximize tax benefits Reduce number of Consolidate Rationalize and/or
Increase emphasis on Improve management
Increase focus on Strengthen and Increase emphasis Increase emphasis on
Increase focus on
Improve effectiveness Increase proactive
Establish
management of key Establish product,
Increase emphasis on
most effective sales on design for most effective sales Create barriers to cost sales channels cost billing channels telecom and network outsource outsource benefits Refine vendor financial strategies outsource product associated with major data centers, branch IT systems, refocus customer vendors with communicate mission, on risk-informed, continuous, proactive of organizational pursuit of service and process
account/relationship divestiture and price-insensitive pricing effectiveness/ refocus channel/ treatment of tures and governance consolidate vendor design for production logistics and on a national/global higher-value customer use of common of credit risk across managerial, forward- stakeholder leveraging strategic
- Which operations you outsource and advertising configurability/ development and advertising switching reinvestment customer segments price optimization media usage (telesales, outlets, self- customers/segments (automated, self-service, equipment and improvement and administration strategies models with business with corporate development portfolio efficiency distribution strategies basis relationships
business decisions
(M&A, consolidation, out-
offices, dealerships, production lines and segments and components business units favorable payment vision, values and scenario-based management of looking information structures and partnerships, mergers relationships as innovation as key assets
channels customization channels service, etc.) etc.) facilities deployment functions strategies strategies functions sourcing, site selection, etc.) retail outlets, etc. service mechanisms distribution channels terms ethics planning investment portfolios governance models and acquisitions organizational priority competencies
Utilize tax-effective
Increase focus on Consolidate or Consolidate or Consolidate or Improve alignment of Strengthen Increase use of lower- Increase focus on Consolidate or Increase emphasis on Increase focus on Increase emphasis on Improve relationship Improve agility and corporate structures
Target new Improve platform and Improve account expansion of Refocus and/or refine Increase focus on Convert free services Improve focus on Improve focus on Consolidate or outsource order outsource design, outsource property Consolidate or Rationalize/ capital budgets and enterprise-wide cost product materials-efficient Consolidate or Increase focus on outsource designing for service Accelerate or defer Rationalize Defer/change timing Increase emphasis on Increase emphasis on customer segments Rationalize/ Build values and Improve integration of Improve effectiveness Increase focus on key cross-business-unit Increase emphasis on management flexibility of
portfolio strategies for management retention priorities and higher-value higher-value outsource service and outsource payroll consolidate vendor outsource production higher-value products designing for consolidate vendor ethics into corporate short- and long-term of program/project operational integration for ownership/licens-
geographies customer product innovation to fee-based services fulfillment functions development and management program plans with financial reporting development production merchandising efficiency and self- income/expenses production facilities of capital investments high-turn products with low credit/loan performance metrics and cross-company strategies for key organizational ing of intangible
products and services strategies relationships strategies segments customers/segments support operations (pick, pack and ship, functions portfolio functions and partners materials efficiency portfolio culture business planning governance models with partners
install, provision, etc.) deployment services functions business priorities standards channels mechanisms functions service needs collaboration stakeholder groups structures assets (patents, trade
names, IP, etc.)

Increase emphasis on
Target new segments time-to-market and
within current
time-to-production-
geographies volume
Increase number and
Expand sales and quality of product and
advertising channels
service launches
Increase emphasis
Increase emphasis on on supply chain
customer satisfaction management
(production, distribution and
sales pipelines)
Consolidate or Increase use of lower- Standardize product Improve focus on Consolidate/ Increase emphasis on Improve alignment of
Increase use of Increase focus on Focus sales efforts on Improve emphasis on Consolidate or outsource operations cost real estate and Improve focus on
Align M&A strategies Rationalize portfolio of
higher-value customer
Design products to Increase use of lower- outsource logistics Refine vendor/
Increase use of Increase focus on Improve focus on Increase focus on Increase emphasis Increase emphasis on Improve agility and
higher-value products higher-margin product quality and outsource billing catalogs with business financial services use cost-effective cost production cheaper service Migrate income to Outsource business design for Increase emphasis Rationalize raw
creditworthy customer internal controls and
HR and technology project quality and
promotions and maintenance facilities / Relocate employee retention segments and and distribution supplier strategies low-tax jurisdictions functions manufacturability and on build-to-order materials strategies with on people/talent quality management flexibility of
(equipment, office supplies,
and services products and services ease of service operations
services business operations promotional materials, etc.) objectives providers
products
materials channels functions channels service segments regulatory compliance business strategies
risk management development and benchmarking governance models
Utilize tax-effective
Improve focus on Outsource property Increase focus on Rationalize and/or corporate structures Increase emphasis
Bypass current Design products for Improve emphasis on Consolidate or tax administration Develop/integrate Increase use of lower- Increase quality and Increase use of lower- Rationalize/ Consolidate or Manage materials Increase emphasis on Increase considera- Increase focus on Increase focus on risk Increase focus on
higher-value channels / Sell ease-of-use / self- design for packing/ outsource end-user global HR practices business insight and realign product Increase focus on
consistency of cost logistics and consolidate vendor outsource service for ownership/licens- on preventive
sourcing on a risk identification and tion of M&A and realization of targeted management and business continuity
advertising channels/ activities cost channels forward-looking development component reuse equipment
directly to customers service shipping efficiency support (compliance, assessment,
(internal/external, onshore/ (self-service, etc.) materials distribution channels portfolio operations ing of intangible national/global basis management divestiture options business benefits regulatory compliance planning
media negotiations, etc.)
offshore, etc.) information efforts assets (patents, trade maintenance
names, IP, etc.)

Improve total Improve total Improve Improve ordering and Improve understand-
Increase utilization of Tailor account Improve identification Improve investment
Improve Improve Increase use of Improve product Improve Improve identification Improve Improve Improve focus of tax Leverage credit rating Strengthen and Improve identification Improve structuring Improve Improve assessment Improve ability to ing of stakeholder
customer experience management customer experience Improve brand understanding of understanding of
relationship/account Improve service and vendor-managed/ Improve design, Improve real estate Improve Improve cash/treasury and discontinuation of receipt processes production scheduling Improve inventory merchandise Improve service and function/department
Reconfigure facilities / Utilize more
Improve Improve Tighten credit/loan to lengthen payment communicate and prediction of and launch of determination of key and benchmarking of identify and assess Improve flexibility Develop and leverage
modular, reusable of valuable customer returns on cash/ awareness / Elevate customer, product development and design and develop- recruitment and procurement strategic planning receipt and storage Increase utilization of efficient production interests (customers, of business strong/unique partner
(purchasing, fulfillment, approaches to (purchasing, fulfillment, customer price development support processes vendor-warehoused management unsuccessful (raw materials, intermediate and staging ordering and receipt support processes on proactive tax demand forecasting demand forecasting terms cycles and reduce governance policies industry and market cohesive program performance metrics business process partnering
usage, support, service, designs usage, support, service, relationships treasury funds brand image and channel testing processes ment processes orientation processes processes processes materials, finished processes facilities equipment shareholders, regulators, processes relationships
etc.) customer segments etc.) sensitivity
profitability processes inventory (equipment, supplies, etc.) practices efforts components, etc.) processes processes planning interest rates and procedures trends portfolios and targets performance opportunities employees, suppliers,
partners, alumni, etc.)

Improve collaboration Obtain exclusive Improve workforce Improve Improve ability to Improve
Improve Improve identification Improve License or sell Improve Provide staff with Improve processes Improve workforce Improve credit Improve selection, Improve real estate Improve Improve service Improve Improve debt and Improve product Improve materials Improve Improve focus on planning, dispatch Improve accuracy and Increase use of Improve Improve Improve customer Leverage breadth of Improve/implement Improve identification Improve alignment of measurement and Increase focus on structure and Improve identification communication and Develop and utilize
Improve value / with design, understanding of agreements with understanding of for generating, acquisition and selection, acquisition procurement manufacturing and Improve retrieval timeliness of tax Increase use of incentives for vendor relationships internal control projects with program post-merger synergy of opportunities to unique physical
understanding of of cross-sell/up-sell intellectual capital to partners better market and planning and dispatch analysis training program planning equity management conception/initiation efficiency of higher-value vendor and assignment flexible/expandable collaboration with collaboration with of opportunities and reporting of implement durable, knowledge transfer
Decrease prices development and
customer needs churn/defection product/service value qualifying and contracting and contracting processes quality control processes provision and cash flexible facilities accelerated/on-time to lengthen payment frameworks and and business and cost reduction increase value to resources
production partners opportunities other enterprises (licenses, distributorships, customer information processes and tools processes processes processes processes processes production processes relationships processes production equipment vendors/partners vendors/partners threats operational and mutually beneficial across organizational
drivers to customers assigning leads processes processes (travel, contract labor, etc.) processes and tools outflow forecasts payment cycles policies objectives financial performance programs partnerships stakeholders (facilities, land, etc.)
etc.) boundaries
Do What You Do Better Improve effectiveness Improve Implement proactive Increase use of Improve Improve capacity/ Improve real estate
Improve salary and Improve contract Improve Improve capacity/ Improve ability to Align internal audit
Improve strategy
Increase integration of Improve ability to Improve agility and Develop and utilize
Improve reuse of Improve identification Improve installation/ benefits administra- management Improve operational Improve financial Provide staff with Improve transport and Improve Increase utilization Differentiate credit development capa- Structure programs/ Improve analysis of Improve unique human
of marketing, product and service understanding of and reactive cross- Sell appreciated Align advertising with differential pricing Improve analytical field sales and demand planning Improve pick, pack improvement and design and Rationalize order Improve coordination demand planning utilize offshore cash/ Increase use of Improve logistics/ Improve management practices with business processes integrate merged flexibility of partner
of churn/defection deployment tion processes / processes risk management risk management better production delivery processes/ effectiveness of plant of standardized treatment of bilities at corporate projects to deliver managerial communication with resources
- Strengthen governance approaches advertising and sales
processes
components current customer
satisfaction
sell and up-sell
campaigns candidates
assets pricing strategies mechanisms (based on
customer value, risk, etc.)
processes and tools telesales
processes
processes, skills and
tools
and ship processes processes deployment
processes
Increase employee (negotiation, execution and processes processes development
processes
quantities and timing
information and tools algorithms
with vendors processes, skills and
tools
assets and move
between geographies
leased real estate maintenance
distribution efficiency
components customers/segments
of debt portfolio business and risk
objectives
and business-unit benefits progressively information across organizational
boundaries
and acquired
organizations stakeholder groups
organizations and
networks (thought leaders, managers,
self-service compliance) levels subject matter experts, etc.)
- Align resources with strategies Improve
Improve Improve Improve processes for Improve operational Improve audit and Utilize international Improve quality and Improve and Improve alignment of Implement/enhance Improve coordination Improve focus on Improve identification
Improve cross-sell Improve adherence to Improve tailoring of Provide staff with Improve Improve Improve demand Improve capital Improve Provide staff with Improve capacity Improve design/ Provide staff with Improve terms Improve development understanding of Improve value Develop and leverage
- Improve business processes Increase time spent Acquire new product responsiveness to and up-sell contracts and Develop, spin-off and communication and offerings to customer better competitive
Improve utilization of Improve utilization of
provisioning/
managing system processes
(administration, security, payroll planning processes budgeting compliance prototyping, piloting better product planning processes, structure of better information and Improve utilization of financing opportuni- on property and
consistency of Rationalize production Shorten production standardize credit A/P systems and anonymous employee
and analysis of
and communication most important and mitigation of
operational risk partner strengths, delivered to Improve product
political relationships
selling and service offerings customer complaints/ approaches/models agreements sell new businesses coordination with needs information
sales staff service staff
installation processes
operations, mainten- processes management service staff ties to minimize after- manufacturing quantities and timing cycles assessment processes with days- reporting and feed- across programs and managerial innovation processes
and tools processes and testing processes information and tools skills and tools distribution networks tools facilities business cases weaknesses and customers and alliances
- Hone strategic capabilities feedback distribution centers ance and changes
energy, HVAC and
maintenance) processes tax borrowing costs materials processes outstanding strategy back mechanisms projects information (people, process, tech-
nology, data, etc.) interests
- Manage tax impacts and opportunities Improve product/ Proactively manage Sell or lease excess Improve Provide staff with Provide staff with Improve end-user Improve Improve Improve business Improve demand Improve demand Improve demand Provide staff with Improve Improve Improve Improve business Improve integration of Improve flexibility
Tailor marketing and service R&D Improve effectiveness capacity to other Align product and Improve definition of better customer better customer Improve capacity/ Provide staff with Improve product and better customer Increase Rationalize Improve management Improve coordination Improve under- Improve value
Improve retention and communication and Improve invoicing/ support and performance program case development forecasting forecasting Rationalize production forecasting Improve management Divest low-utilization Rationalize production communication of accountability/ communication continuity planning business processes and versatility of IT Develop and cultivate
- Improve control / reduce risk sales approaches to and deployment
transition points
(life events, ends of
of cross-sell/up-sell
win-back processes enterprises coordination with service prices with product and service information information billing processes administration demand planning assessment better product and management and analysis service introduction/ processes, skills and processes, skills and quantities and timing processes, skills and information of transfer pricing real estate use of leased merchandise order
quantities and timing
of delinquent of payments across standing of regulatory strategic directions authority of program around improvement and disaster recovery across partner delivered to systems and good will
customer segments capabilities processes (production capacity, service
sales channels value to customers specification (demographics, inquiry (profiles, transaction
processes processes and tools processes service information processes processes launch processes tools tools tools (profiles, transaction production equipment quantities and timing accounts business units requirements and priorities and project resources priorities capabilities networks shareholders
contracts and leases, etc.) platforms
- Collaborate more effectively capacity, etc.) history, etc.) histories, etc.) histories, etc.)

Improve tailoring of
- Satisfy customers, employees and Improve access to
Adapt current Improve tracking of Improve Improve structuring marketing and
Provide staff with
Provide staff with Improve policies and
Improve dispatch, Improve assignment Improve Improve tax manage- Improve utilization of Focus efforts on Rationalize
Provide staff with Optimize accounting
Improve assessment Improve monitoring
Improve alignment of Improve program/ Improve ability Improve manage-
Improve quality
Improve value
Improve breadth, Develop and utilize
products and services customer interactions Solicit and respond to Improve managerial Improve demand better product, service diagnostic, resolution Increase utilization of Improve employee of procurement accounting and ment processes Rationalize production Rationalize order better product, service methods and selec- Increase use of Increase utilization of Divest low-demand/ Divest obsolete Improve collections budgets and capital and speed of depth, quality and unique information
other stakeholders information and
analytical tools
for new segments/ (purchases, support
understanding of
customer needs customer feedback methods and tools forecasting and pricing of
promotions
advertising
approaches to
and competitive better product and
service information
processes around
merchandise returns
and replacement real estate retention programs transactions to measurement (direct and indirect tax
product development
channels
higher-value vendor
relationships quantities and timing
merchandise order
quantities and timing
quantities and timing and contract tion of accounting leased infrastructure production equipment obsolete inventory materials processes and benchmarking of
A/P performance
and management of
regulatory compliance
programs with
project management
methods and tools
to launch
improvement efforts
ment of regulatory
compliance
communication with delivered to
employees
timeliness of business resources (customer,
channels requests, etc.)
customer segments
information processes appropriate staff processes management) information periods strategic priorities partners planning information product, market, etc.)

Improve visibility of Improve Coordinate pricing of Optimize valuation Improve identification Improve
Improve quality and Pursue joint-venture, customer Improve Improve technology Improve asset Align production and and costing methods Increase Improve tracking and Improve value
Maintain competitive competitiveness of understanding of Improve use of complementary Improve product and Route low-value Provide staff with Improve terms with Provide staff with Increase focus on Improve business Improve collaboration Improve coordination Improve assignment Differentiate treatment and assessment of understanding of Improve assignment Improve
assignment of sales partnership and OEM relationships and business unit supply- and capacity- service launch Consolidate/realign transactions to lower- better customer and and data risk
better HR information higher-value vendor performance reporting management with partners and
Reduce procurement with business merchandise ordering of transactions to of customers/ for inventories use of flexible and Divest low-utilization Improve terms on Increase use of just- Improve management
internal value and
communication of
of accountability and Improve physical management of delivered to partners Improve versatility of Develop and leverage
functionality and value product and service products and services sales territories management service providers processes cycle times schedules with expandable equipment merchandise in-time procurement of credit/loan portfolio risk (strategic, operational, program/project security of people (vendors, channel partners, managers and staff strong brand
leads arrangements interactions across all performance and driven promotions (razors v. blades / product v. processes cost sales channels order information (security, energy, etc.) and tools partnerships processes customers partners appropriate staff segments (LIFO, FIFO, uniform investment, financial, com- market value of authority partner relationships
channels offerings market values shipping charges, etc.) processes (fixed and variable assets) distribution schedules capitalization, shrinkage, infrastructure pliance, data/privacy, etc.) business units progress etc.)
obsolescence, etc.)

Increase utilization of Improve identification, Improve value

Improve brand Improve management
strength and good will of product lifecycles
(launch through retirement)
Improve Tailor cross-sell/up- Offer value-adding Divest non-performing Improve product and Improve execution of Improve product and Improve sales Improve routing of Improve forecasting, Improve terms on Improve capacity/ Improve budgeting License or acquire Provide staff with Improve use of Route low-value Optimize depreciation Improve assessment Improve risk planning, assessment and Improve assignment Improve quality and Improve sharing of Improve sharing of Improve product, Develop strong
responsiveness to service withdrawal forecasting and planning and IT, telecom and purchased and leased Improve collaboration Improve/standardize Improve terms on Shorten production methods/lives for Improve terms Utilize more efficient Consolidate Improve terms on and benchmarking of consistency of knowledge across knowledge across delivered to other service and process customer
sell offers to customer product and service and non-strategic service lifecycle market- and supply- service requests to network resources demand planning and forecasting products and better information and national/global transactions to lower- mitigation and control execution of of resources to stakeholders
customer requests needs bundles business units management driven promotions
and retirement campaign execution
appropriate staff
prioritization skills and real estate, furniture with vendors M&A processes materials purchases cycles property, plant and on infrastructure IT systems inventory materials credit/receivables performance organizational organizational innovation skills of relationships and
and inquiries processes processes and tools tools (servers, routers, network
and fixtures processes and tools capabilities intellectual property tools purchasing power cost sales channels
equipment performance approaches M&A/divestiture projects assessment methods boundaries boundaries (public, alumni, analysts,
staff communities
capacity, etc.) opportunities etc.)

Increase use of lower- Implement/improve Improve monitoring Improve performance

Tailor products and Evolve product and Implement pricing and Proactively manage Improve ability to Improve campaign
Consolidate device
Improve demand Increase use of Improve routing of Ensure full utilization Increase use of Increase use of and management of Improve conversion of Develop and leverage
Improve quality affinity programs utilize offshore cash/ Shorten time-to- Improve price/margin design and cost service and Improve terms on company-wide Improve terms on Improve compliance Improve skills of Improve terms with Improve utilization of Utilize more Improve company- Improve ability to Improve involvement and reliability of IT Improve integration of
services to new service features, transition points Improve terms with Improve due-date
management processes and tools equipment and management Improve financial product development production channels /
forecasting vendor-managed/ service requests to of tax carryforwards Divest low-utilization
flexible/expandable IT vendor-managed/ vendor-managed/ wide monitoring and develop and spin-off of operational staff in risk and compliance IT systems across strong relationships intellectual capital
assurance programs based on volume and (life events, ends of assets and move market knowledge of staff management sales channels information channels reliability improvements reporting efficiency service providers processes, skills and vendor-warehoused appropriate service (credits, net operating infrastructure vendor-warehoused vendor-warehoused systems/platforms into sources of com- (copyrights, patents,
(strategic, operational and
BUSINESS PROCESS GROUPINGS customer segments functionality and value breadth contracts and leases, etc.) between geographies processes and tools (contact centers, automated
voice response, web, etc.)
information and tools (HVAC, cabling, etc.) for assessing staff
performance
supplies processes staff (delivery, warehousing, etc.) Reduce downtime tools inventory channels losses, capital losses, etc.) systems inventory inventory management of risks new businesses project delivery financial risks; regulatory
and tax compliance)
(applications, equipment,
networks, etc.)
partner networks petitive advantage trademarks, etc.)

Business Strategy and Management Utilize tax opportuni- Improve breadth, Consider tax implica- Improve quality of Develop and utilize
Shorten order-to- Improve account Improve features and Improve coordination Improve channel Improve skills of order Consolidate and/or
Improve real estate Improve terms with Provide staff with depth and quality of Improve incentives
Improve incentives Improve skills of Improve breadth, Improve focus of Improve identification Increase account- Improve breadth, Improve information provided
(Business and Financial Strategy, Mergers and Acquisitions, Tax delivery cycle time / Remove barriers to Improve brand Implement affinity ties around risk man- Improve skills of Improve skills of performance Improve skills of HR service providers around product Improve collaboration Improve skills of Improve skills of tions in the location/ Improve maintenance depth, quality and company resources ability of business depth, quality and partnership and unique production
management skills of agement activities functionality of with suppliers and management management and re-architect data better managerial financial information around production inventory and selection of facilities and management of to stakeholders resources
Management, Risk Management, Compliance Management, Program Improve product and switching
staff
strength and good will programs
products and services sales channels processes and tools sales staff service staff billing staff stores
management staff (equipment maintenance,
information and tools (asset, budget, price/cost, development with vendors efficiency distribution staff
merchandising staff service staff of IT systems timeliness of manag- on high-priority program/project risks unit leaders for tax timeliness of business collaboration skills of (accuracy, timeliness,
(hedging transactions, (distribution centers, service (methods, equipment,
Management and Performance Management) service availability commodities trading, etc.) methods and tools delivery, warehousing, etc.) treasury, debtor/creditor, efficiency centers, branches, etc.) erial information initiatives impact of decisions information staff transparency & facilities, etc.)
performance, tax, risk, etc.) predictability)
Build tax opportunities Ensure tax planning
Customer Strategy, Relationships and Interactions Improve sales and Apply brand to new Improve incentives for Offer value-adding Defer and reduce Improve quality and Build product Improve staff Improve incentives Improve incentives Improve Consider tax Increase use of Improve skills of Improve cost Improve definition of Increase use of Improve incentives Improve incentives Improve staff into real estate activities and tax Improve anticipation Dynamically cancel or Improve benchmark- Improve access to Improve mechanisms
Improve brand federal, state and Improve terms with around service around order establishment of and incentives in location Utilize national/global accounting and vendor-managed/ Improve skills of Increase utilization of and understanding of redirect ineffective/ ing of global effective for soliciting and Develop and utilize
(Marketing, Sales, Delivery/Provisioning, Billing and Service) marketing skills of and unbranded account/relationship product and service reliability of products margins/profitability incentives around distance/on-line business product and service around inventory/ around merchandising incentives around transactions filings comply with and distribution of unique IT resources
strength and good will local quarterly esti- advertising channels efficiency and management adherence to service- and selection of purchasing power allocation of shared/ vendor-warehoused production staff (income deferral, location IT systems current and potential obsolete programs tax rate against addressing
staff products development bundles and services into sales incentives sales efficiency learning management staff specifications distribution efficiency efficiency service efficiency regulatory environ- business information (applications, networks, etc.)
mated tax payments effectiveness efficiency level targets facilities overhead costs inventory credits and incentives, regulations/legislation and projects industry peer group stakeholder feedback
Product Strategy, Development and Production leasing terms, etc.) ment
(Innovation and Design, Supply Chain Management, Production Improve product
Shorten order-to- Improve methods and Improve technical and Reduce salary and Increase use of Improve ability to Improve terms with Improve consideration Clarify governance Improve breadth, Improve asset
Operations and Logistics) Improve alignment of Improve product- and Improve account Improve methods and Improve terms with Improve terms with Improve terms with Ensure proper Improve incentives development Improve contracting Improve terms Improve terms with Improve terms with roles and responsi- Improve effectiveness Improve management Improve security of
delivery cycle time / Establish customer tools for managing Improve skills of service providers service providers service providers project management benefits costs / vendor-managed/ utilize offshore cash/ service providers service providers of tax implications in Divest low-utilization depth, quality and development skills of
staff incentives with service-innovation management
Improve product and communities demand/supply
tools for managing
marketing staff skills of staff valuation of property
Improve value of vendor-warehoused
around business
assets and move performance and negotiation skills on equipment service providers (outsourced services, the acquisition and bilities (delegation of of legislative/lobbying of vendors/service applications, systems
Human Capital Strategy and Management strategic objectives skills of staff methods and tools pricing performance (network services, airlines, (network services, (delivery services,
for tax purposes planning efficiency management of purchasing staff purchases (transport, warehousing, (delivery, warehousing, etc.) network services,
IT systems efforts providers
timeliness of perform-
and data
management and
authority, segregation of
service availability performance information services, etc.) outsourced functions, etc.) outsourced functions, etc.) employee benefits inventory between geographies etc.) information services, etc.) disposition of assets ance information staff
(Recruitment, Development, Administration and methods and tools duties, etc.)
Performance Management) Improve profitability of
Acquire companies Improve terms with Improve logistics Optimize tax benefits Improve incorporation Continuously track Improve access to
Improve incentives for Improve cross- Improve customer Improve staff Improve terms on Improve terms on Improve terms on Improve incentives Improve contracting Improve terms with Improve skills of R&D efforts through Improve incentives Improve terms with Improve terms on Improve terms on Strengthen training/ Improve Improve incentives
IT Strategy and Management with relationships in third-party product service providers performance associated with self- Improve terms on of risk analysis in and manage the and distribution of
targeted customer product development selling/up-selling service and retention incentives around leased sales assets leased service assets leased assets around IT/network and service providers and negotiation skills financial management utilization of tax and around procurement service providers management merchandise leased service assets constructed assets education of board process innovation around asset
(Design, Development, Deployment, Operations and and innovation skills of staff skills of staff marketing efficiency (computers, vehicles, etc.) (computers, vehicles, etc.) (computers, vehicles, etc.) efficiency of procurement staff (information services,
staff economic develop- efficiency (outsourced functions, etc.) purchases (computers, vehicles, etc.)
production equipment and audit committees business planning realization of project performance skills of staff development
(payroll, benefits, training, (plant, facilities, internally-
Performance Management) segments consultants, etc.) methods and tools (internal and external risk) benefits information
etc) ment incentives used software, etc.)

Other Shared / Corporate Services Improve terms with Improve management

Acquire companies Improve staff Build customer Improve service and Improve tax collection Improve terms with of international staff Improve incentives Improve incentives Improve materials Improve management Optimize expense vs. Align compensation Integrate tax oppor- Improve management Improve depth
(Real Estate, Procurement and Other) Acquire companies in satisfaction and service providers Improve management support performance around financial performance Improve management Improve management Improve terms on IT and incentive systems tunities and issues of organizational Improve career Develop and utilize
aligned with product incentives for cross- of trade/indirect taxes and remittance service providers costs around procurement of trade and indirect capitalization of costs and breadth of staff
targeted geographies retention into staff (researchers, information management management management of transfer pricing of transfer pricing systems with strategies, values into business planning change in support of options and paths unique tax expertise
strategies selling/up-selling services, advertising (sales/use, VAT, GST, etc.) processes (contractors, network (immigration, payroll, staff efficiency taxes (sales/use , VAT, (M&A costs, R&D costs,
technical skills
All Process Groupings incentives channels, etc.) methods and tools services, consultants, etc.) support, international equity, efficiency methods and tools GST, etc.) etc.) and ethics processes initiatives
(Action may apply to all processes) etc.)
Improve marketing Improve terms on Manage payroll tax Improve Improve tax benefits
Improve methods and Improve methods and Improve sales Improve retention Improve sales Improve tracking and Improve production Improve service of compensation and Align management
Note: Many actions could logically be associated with tools for managing tools for managing performance performance and advertising purchased and leased impacts of business Optimize utilization of Improve terms with merchandising Improve leadership Improve program/
performance performance recovery of indirect available sales/use financial services performance performance performance benefit programs and management project management
and staff incentives Improve recruiting
other or multiple process groupings. For example, sales and marketing innovation management management management assets (PCs, servers, initiatives management management with company effectiveness
management taxes (sales/use, VAT, network equipment, leased (M&A, consolidation, tax exemptions providers management (deferred and equity-based skills of executives skills of staff
many customer and product actions are likely to have performance performance methods and tools methods and tools methods and tools GST, etc.) methods and tools methods and tools comp; retirement and performance
methods and tools lines, etc.) restructuring, relocation etc.) methods and tools healthcare benefits, etc.)
heavy IT and HR components.
Improve profitability of Improve/consolidate
IT performance Utilize available Improve management Improve executive Improve monetary Improve mechanisms
R&D efforts through Improve order Improve identification Improve vendor
utilization of tax and management management federal, state and of indirect taxes and application of development, management skills of and non-monetary for collecting and
methods and tools local employment/ (sales/use, VAT, customs recruiting and recognition of staff implementing
economic develop- methods and tools training incentives duties, etc.) R&D tax incentives succession planning staff contributions employee ideas
(utilization, performance,
ment incentives capacity planning, etc.)
Ensure adequate
Improve HR Improve procurement documentation of Improve talent Build innovation and
Improve utilization of performance performance improvement into
telecom tax incentives significant tax management models
management management positions rewards and
(credits, exemptions, etc.)
methods and tools methods and tools and programs incentives
(earnings & profits, transfer
pricing, tax opinions, etc.)

© 2004. All rights reserved. Confidential. 0104