Which actions create value?
This basic question is a constant concern for any
management: When setting budgets, when tracking the performance in
balanced scorecards, when considering a merger or an acquisition, when
determining the message to send to the financial markets.
The question appears in many different formats but with the same
fundamental challenge: to correctly predict how people will change their
behaviour because of a certain action. For example, you may want to estimate how much an
action would make:
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Customers buy more
Customers pay more
Non-customers
become customers
Costs go down without
jeopardising revenue
|
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Employees work harder
Employees serve customers better
Investors pay more for
shares in the company
Investors invest more in the company
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