The following article is part of the self-preparation for the modern BVOP® program.
Every business organization needs a clearly defined list of goals and priorities. These priorities need to be defined carefully and prioritized based on the strategies of the organization and its mission. The future of an organization is based on current activities and how they are executed.
- Cost management
- Optimizing financial leverage
- Bond rating
- Optimizing budget
- Diversify revenue streams
- Value versus cost
- Cross-selling
- Partnerships
- Innovation
- Customer focus
- Workplace safety
- Skills improving
- Image improving
- Investing in tools
- Growing an internal positive atmosphere
- Transparent board of organizational issues
- Understanding and aligning with priorities
General priorities may include:
- Cost management
- Optimizing financial leverage
- Bond rating
- Optimizing budget
- Diversify revenue streams
- Value versus cost
- Cross-selling
- Partnerships
- Innovation
- Customer focus
- Workplace safety
- Skills improvement
- Image improvement
- Investing in tools
Cost management
Planning and managing costs is an essential activity that may require careful budgeting and allocating financial resources for planned projects, investments, or other initiatives. The organization may try to predict impending expenditures or to survive unexpected or challenging periods.
Optimizing financial leverage
Financial leverage describes how much of an organization's assets or investments are self-funded and how many come from borrowed funds (loans, bonds, etc.).
If an organization uses mainly its own funds, it may be unsuited for larger initiatives. Using mainly borrowed funds is a high risk.
Organizations need to decide strategies, priorities, and manage risk. The borrowed funds are used only for increasing their own capital or for equity. Optimizing financial leverage may be related to optimizing internal financial resources.
Bond rating
The bond rating indicates the credit quality of a bond. It helps potential investors to decide whether to invest in a company or not. If an organization prioritizes its bond rating, this may be related to optimizing financial resources.
Optimizing budget
Optimizing budgets may be a general goal and a priority for a business organization and it may not be related to any financial leverage optimizations or bond rating improvements.
Diversify revenue streams
An organization may decide to receive revenue from multiple sources or products and services.
This may require acquiring or developing additional products or services and typically calls for investments.
Value versus cost
Sales initiatives focused on the customers and their understanding of the product or service and the way prices match their expectations.
Cross-selling
This may include the strategy of selling more products to the same customers.
Partnerships
An organization may focus on establishing close partnerships with their clients or other organizations. This is a typical priority that occurs when designing solutions are dependent on customers' participation.
Innovation
An organization may need to differentiate its products or services by investing in innovation. This is usually related to investment in research and development (R&D), tools, environment, analysis, tests, and more, attracting great employees, and establishing a good reputation.
Customer focus
Customer satisfaction and excellent services may be critical for a business. Customer retention and marketing initiatives may be a priority if the organization depends on its existing customers.
Workplace safety
Authorities may require workplace safety, or this may be an organizational decision. This requires the focus not only from the business (the organization) but from all the employees as well. Training, equipment, and policies may be needed.
Skills improving
Investing in employees' skills may be a priority and an objective for organizations when they rely on highly skilled teams.
Image improving
Image may be important when organizations request an investment, need to extend markets or attract quality employees.
Investing in tools
Equipment and tools may be of high priority for a business, especially when they relate to manufacturing, procurement, development, or training.
Without such priorities and planned resources, the organizations may not be stable for the long term. All BVOP office representatives and key roles need to be aware of the current organizational priorities, and why the organization takes or does not take particular actions, investments, or directions.
The BVOP suggest additional and necessary priorities on which organizations need to focus:
- Growing an internal positive atmosphere
- Managing organizational issues
Growing an internal positive atmosphere
Positive attitude, confidence, and calmness are equally important for both people and businesses.
Confident and positive people are more productive, and bigger production rates increase profit and image. Business initiatives are developed faster.
Stress and fear need to be reduced and managed, and everyone should act proactively without fear of being penalized verbally, formally, informally, financially, or in any other way.
The organization creates and provides a positive atmosphere with the support of all offices.
Transparent board of organizational issues
The BVOP introduces the transparent board of organizational issues as a tool for managing and solving internal or external problems. It may be a list of current organizational, structural, management, or supply issues that reflect on image, productivity, morale, innovation, or other topics important for the organization.
It is a regularly updated list, and its items need to be prioritized.
The transparency of the list provokes a fair and clear definition of problems. Multiple organization management offices and key roles have access to the list and update it when needed. These can be interested parties such as C-Level positions, portfolio and program directors, human resources directors, and other roles in the organization that can support its productive management.
All offices, executives, or key roles managing the transparent board of organizational issues should commit to solving the prioritized problems (from top to bottom). If one at a top position cannot be processed or resolved at a current stage, the interested parties focus on the next from the list.
Understanding and aligning with priorities
All office representatives and important roles need to have an understanding of organizational priorities and strategies and align with them. Organizations may need support and understanding not only from C-level positions or high management but from many teams and individuals during critical periods, or large-scale initiatives.
The following issues related to chapter "Business Value-Oriented Priorities" are included in the certification exam. The sequence of questions is presented in the table.
The data is current as of December 2, 2024, 1:13 am
| ID | Issue | Time | Category |
|---|---|---|---|
| 0 | Customer focus | 60 sec | CEO |
| 1 | Understanding and aligning with priorities | 60 sec | CEO |
| 2 | Optimizing budget | 60 sec | CEO |
| 3 | Bond rating | 60 sec | CEO |
| 4 | Value versus cost | 60 sec | CEO |
| 5 | Growing an internal positive atmosphere | 60 sec | CEO |
| 6 | Partnerships | 60 sec | CEO |
| 7 | Cross-selling | 60 sec | CEO |
| 8 | Skills improving | 60 sec | CEO |
| 9 | Workplace safety | 60 sec | CEO |
| 10 | Cost management | 60 sec | CEO |
| 11 | Image improving | 60 sec | CEO |
| 12 | Innovation | 60 sec | CEO |
| 13 | Optimizing financial leverage | 60 sec | CEO |
| 14 | Investing in tools | 60 sec | CEO |
| 15 | Diversify revenue streams | 60 sec | CEO |
| 16 | Transparent board of organizational issues | 60 sec | CEO |
Comments from the BVOP™ community on “Business Value-Oriented Priorities”
Summary
Business organizations need clear goals and priorities based on their strategies and mission. Priorities include cost management, financial leverage, diversifying revenue, innovation, customer focus, workplace safety, and investing in tools.
Cost management involves careful budgeting and allocation of financial resources for planned projects, investments, or other initiatives. Financial leverage describes the balance between self-funded and borrowed funds, and optimizing this balance is crucial for managing risk. The bond rating indicates the credit quality of a bond and is important for attracting investors. Diversifying revenue streams may require investments in additional products or services. Sales initiatives, cross-selling, partnerships, innovation, customer focus, workplace safety, skills improvement, and image improvement are all important priorities for businesses.
Investing in equipment and tools is crucial for businesses, particularly in areas like manufacturing, procurement, development, and training. Without proper planning and resources, organizations may not be sustainable in the long run. It's important for all BVOP office representatives and key roles to understand the current priorities of the organization and why certain actions, investments, or directions are taken or not. The BVOP recommends focusing on cultivating a positive internal atmosphere and effectively managing organizational issues as additional priorities.
Positivity, confidence, and calmness are crucial for individuals and businesses. Productivity and profit increase with confident and positive people. To achieve this, stress and fear should be managed, and proactive behavior should be encouraged without fear of punishment. The organization should create a positive atmosphere with the support of all offices.
The BVOP has introduced a transparent board to manage and solve organizational issues. It is a regularly updated list of current issues related to management, structure, supply, productivity, morale, innovation, or other important topics. The list is accessible to multiple management offices and key roles that update it as needed. Prioritization of the issues is necessary, and all parties involved should commit to solving them from top to bottom. If an issue cannot be resolved at the current stage, the next one on the list should be addressed.
All office representatives should understand and align with organizational priorities and strategies, including teams and individuals during critical periods or large-scale initiatives.
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