- Published: 02 August 2009
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The Valuation Alignment Program™ (VAP)
A VAP is aimed exclusively at the CEO and the C-level team, or at the CEO and the board of directors. The aim of the VAP is to improve the valuation of a company by improving the alignment between staff, managers and executives and the valuation objectives of the organization.
Participants in the VAP complete the same three assessments as in the Behavioral Competitiveness™ Program. However in addition they each receive a FinSim report, based on these assessments, which shows them both individually and as a team what the precise impact of their behaviors will be on the income statement of the organization and on its valuation metrics and its market value.
- Defines and measures competitive advantage through identifying the number and types of Financial Signatures® possessed by individuals in an organization relative to its competitors.
- Measures and improves the ability of the organization to expend its resources to accomplish competitive superiority.
The combination of these approaches leads to improved revenues, gross margins, profitability and cash flow and therefore to improved company valuation and market power.
A VAP aligns the Financial Signatures® of executives and leadership teams at all levels with the valuation objectives of the organization. This allows for the optimization of the organization's profitability and valuation through optimizing the membership and composition of senior management teams.
The purpose of the program is to assess each of the individual team members to arrive at a composite team profile and the impact of that profile on the valuation objectives of the organization. From this profile comes an identification of vulnerabilities, and corrective action needed.
The VAP provides value to every level of an enterprise:
Increases the valuation of the ENTERPRISE by ……
- Revealing where the company stands in relation to its competitors and their particular financial cultures in order to beat them in the market
- Learning how to set an achievable valuation target for the company
- Choosing the right alignment process to best achieve the enterprise’s valuation goals
- Improving the organization’s financial culture to achieve its valuation goals
- Understanding how to choose particular types of financial strategies and what they mean for enterprises’ valuation
Enables the CHIEF EXECUTIVE to.. …
- Understand his/her own potential to improve the enterprises’ profitability and valuation
- Understand how to adjust financial missions to surpass the competition and adjust to market threats
- Understand his/her own Financial Signature® and how it can be used to further his/her own professional value
- Understand how to align the financial culture of the enterprise with valuation targets
Enables the EXECUTIVE TEAM to …
- Understand how an executive becomes a valuation and profitability achiever
- Improve executive performance by helping them to align their operational missions to the valuation goals of the enterprise
Strengthens HUMAN RESOURCES by …
- Aligning HR processes with the enterprises valuation and profitability goals
- Implementing the correct HR processes for achieving different levels of profitability
- Understanding how to pick executives with a winning Financial Signature®
The VAP program is a customized program that can take anywhere from one day to five days. IN the case of programs exceeding one or two days, they can be completed in stages to suit the schedules of senior executives and board members.