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VALUE CREATION PLAN AND SETTING REALISTIC GOALS

Developing a value creation plan involves setting realistic goals and measuring the achievement of these goals. Moreover, value creation is the primary aim of any business entity. Furthermore, creating value for customers helps to sell products and services while creating value for shareholders. This ensures the future availability of investment capital of fund operations. Additionally, value creation is the only factor that drives a company to establish itself in the market and reach the end customers. Organizations implement innovative strategies to increase growth and improve the brand image of a company. A value creation plan bridges the gap between execution and strategy.

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STEPS TO BUILDING A SUCCESSFUL VALUE CREATION PLAN

Primarily, before creating a value creation plan, a company should create measurable and specific value drivers. Moreover, it should develop objectives and initiatives to support the value drivers. Setting realistic goals is also crucial to highlight what the company expects to achieve. Furthermore, the company should identify actions that it requires to achieve these goals. It should also link its objectives and actions to the value drivers. Sharing the value creation plan with members of the company enables them to work towards the company goals in the production of products and services.

SIMPLE METHODS OF SETTING REALISTIC GOALS

The first step in setting realistic goals is writing down the goals that a company wants to achieve. Consequently, this helps to analyze the expectations. The next step is taking inventory of resources and threats. A company should take inventory of the resources that it has access to and the circumstances that may hinder success. Furthermore, making necessary reassessments and adjustments is essential after coming up with a value creation plan. This ensures that a company reaches its objectives despite the circumstances. Additionally, a company should also determine milestones such as meeting the quality of products and services that it desires. Milestones help a company to know whether it is on track.

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