value cycle dynamics™

Breaking news: Tortoise and hare to work together...

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In capital-intensive industries, companies must balance investment decisions over both short and long time horizons.  Investments in R&D, production capacity, distribution, sales capacity etc., must all be planned in harmony to deliver growth and to create long-term value. 

At the same time, managers are often judged and rewarded on the basis of short term performance.

Value Logistics is a simulation-based strategy method that supports “risk-free” testing of alternative investment strategies - and sharing strategy insights across the whole management team. Why bet the company on strategies that have not been thoroughly tested in advance, when a much better alternative is available?

The term “Value Logistics“ reflects (a) that most concerned to build long term value, (b) that short term performance is also important and (c) that understanding the logical interdependency of critical resources (e.g. cash, people, land, intellectual property, technology), over time, is the key to developing winning and internally consistent strategies.

Value Logistics is transparent and logical, teasing out strategy inconsistencies and flagging potential side effects. Simulations are constructed with full involvement of the senior management team and therefore represent the best knowledge and thinking of the organisation as a whole. read more...

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