Establishing 'Making it Happen' as a 'Formal & Predictable' Discipline

Synergies and Shared Capabilities	End-to-End Investment-Maximization

Execution-MiH ENCYCLOPEDIA → Execution Making-it-Happen → SECTION - 'Value' management →

CHAPTER -

Maximizing on what you have

When we talk about maximizing the value, a great emphasis should be placed on getting the maximum value out of 'what you have'. In today's world where 'legacy' is a curse and 'next-gen' is blessing, there is a general temptation of acquiring new instead of using the old and maintaining it till you get a good net value. The typical consumerism mind-set of latest mobile, latest car is fine as long as it is at an individual level. However, if the same mind-set creeps at an enterprise level, it will be a drain on resources. This chapter talk on how you can get the maximum value out of your existing assets, customers and other constituencies.

Topics

Unconstrained thinking on what is possible

Human beings are endowed with a great power of creativity and lateral thinking. It finds interesting ways to manage its business within the constraints it has. An organization has to take a serious look at all its resources and leverages. It has to look at its assets, its IT applications, its human resources & skills, its partners, its brand, its customer-base and ask itself - Are we making the best of what we have?. An enterprise has to desist from a self-inflicting temptation of going for new, most sophisticated, next-generation....Most organizations you walk into will have business applications, which are not utilized fully, people who feel that they are under-deployed, customers who have not done a new purchase or activity since long and offices, which are operating at under capacity. Firstly, an enterprise should be looking at what all is possible to take out of what-it-has.

Unconstrained thinking on how much is possible

After an organization has taken a note of what all it can do with what-it-has, it should also see on the magnitude of benefit extraction it can make out of its current resources. In today's era of economic uncertainty, an organization should be looking for 125% capacity utilization.

Mapping current state vs. ideal potential

This page takes you through a high-level process of how an organization can map its current state of usage of what-it-has vs. the ideal potential. This mapping is both a technical exercise as well as a demonstration of leadership and lateral thinking.

Applying boundaries of contracts and capability to use

Post mapping of the current state vs. ideal potential of benefit extraction, and organization has to apply the reality wrapper on this mapping by applying the boundaries of its contracts, compliance and its own execution capacity to do it. Moreover, the benefit extraction also needs to be governed by the value it will bring to the share-holders, as sometimes the cost of benefit-extraction can outweigh the gain.

Building a road-map to maximize the usage

Though this is an iterative exercise, an organization has to continuously manage and track its benefit-extraction agenda. Organizations who fail to do so, face the periodic shocks when shareholders will give the top-down directives, to significantly reduce the number of people, offices and manufacturing facilities.