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It’s time to rethink your value-creation strategy

As disruption intensifies, financial productivity is no longer enough to win; five actions can help you navigate the new value-driver ecosystem.

The Leadership Agenda

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The value creation ecosystem

Society Financial productivity Resilience Enterprise value
  • Society
    An organization creates enterprise value by addressing broad societal challenges and considering a wider range of stakeholders beyond shareholders.
  • Financial productivity
    Capital markets have long rewarded companies for investing to drive growth while also improving efficiency to make that growth more profitable.
  • Resilience
    A truly resilient organization can both respond to and adjust effectively to external shocks and flex and stretch to seize new opportunities.

Today, creating “enterprise value”—the full realisation of a company’s potential beyond traditional shareholder priorities—requires not just financial productivity but also resilience against sustained disruption, as well as a commitment to societal well-being. Here are five actions you can take to thrive in this new value-creation ecosystem.

1. Apply “visionary valuation.” If a strategy is disruptive—take Toyota’s launch of the Prius two decades ago, as a bridge to electric vehicles—it can be difficult to measure its value creation potential with any certainty prior to execution. Instead, leaders should look to achieve a “visionary valuation” by clarifying the forms of value they’re trying to create, understanding how commitment to those types of value will drive enterprise value and developing a set of key performance indicators (KPIs) to track value creation across this broader ecosystem. 

2. Think like a disruptor. To rethink strategy in the face of disruption, businesses in any industry can ask: if we were coming into this marketplace today as a new entrant, unburdened by legacy infrastructure and assets, what strategy would we adopt? This blank-slate mindset enables leaders to anticipate new competitive threats and opportunities and potentially formulate, evaluate and fine-tune a strategy that could turn them into actual, not hypothetical, disruptors. 

3. Prioritise ruthlessly. Amid today’s relentless disruption and evolving perceptions of value, it’s vital to be prepared to act radically and quickly in allocating resources where they’re most needed. Although the shock of COVID-19 has triggered an acceleration of change that makes more actions possible, it has also broadened the range of potential priorities that leaders must consider when deciding where to focus. The effect is that it’s more important than ever to be able to prioritise, and to identify and act on the most effective value drivers in the value creation ecosystem.

4. Execute at a higher pace. Faced with multiple fast-moving disruptions, intensifying real-time scrutiny and shifts among the various drivers of enterprise value, leaders no longer have the luxury of rolling out a strategy gradually. Being first might be more important than having the perfect strategy from day one, especially given opportunities for iteration and fine-tuning later, and buying capabilities might be preferable to taking time to build them. 

5. Be more attuned to your ecosystem. It’s critically important to have the flexibility to adjust if conditions change, if the strategy isn’t delivering or if current actions are destroying value. This means moving away from executing on fixed rails as in the old days, and accepting that the business’s strategy, plans or behaviour will have to change as new disruptions, risks, opportunities and KPIs emerge.

Learn about companies that have retooled their value drivers to create opportunities from disruption

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Contact us

Aaron Gilcreast

Aaron Gilcreast

Partner, Global Valuations Leader, PwC United States

Tel: +1 404-386-0614

Hein Marais

Hein Marais

Global Value Creation Leader, Partner, PwC United Kingdom

Tel: +44 (0)7740 064729

Chris Manning

Chris Manning

Partner, Strategy& Leader, PwC Australia

Tel: 612 8266 4722

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