The following article is a sample from the full BVOP™ Ultimate Guide and is part of the preparation for the BVOP™'s modern Agile Chief Executive Certification 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.
General priorities may include:
- Cost management
- Optimizing financial leverage
- Bond rating
- Optimizing budget
- Diversify of revenue streams
- Value versus cost
- Customer focus
- Workplace safety
- Skills improving
- Image improving
- Investing in tools
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 difficult periods.
Optimizing financial leverage
Financial leverage describes how much of an organization's assets or investments are funded by own funds and how much by borrowed funds (loans, bonds, etc.).
If an organization uses mainly its own funds, it may be insufficient for larger initiatives while 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 funds or equity. Optimizing financial leverage may be related to optimizing internal financial resources.
The bond rating indicates the credit quality of a bond. The bond rating helps potential investors to decide about investing in a company or not. If an organization may prioritize its bond rating this may be related to optimizing financial resources.
Optimizing budgets may be a general goal and a priority for a business organization and may not be related to any financial leverage optimizations or bond rating improvements.
Diversify of 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 requires investments.
Value versus cost
Active product and sales initiatives focused on the customers and their understanding of the product or service and how prices match their expectations.
This may include the strategy of selling more products to the same customers.
An organization may focus on establishing close partnerships with their clients or other organizations. This is a typical priority when organizations depend on customers and their participation in designing solutions.
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), attracting great employees, establishing a good name, investment in tools, environment, analysis, tests and more.
Customer satisfaction and great services may be critical for a business. Customer retention and marketing initiatives may be a priority if the organization is depending on their existing customers.
Workplace safety may be required by authorities or organizational decision. This requires the focus not only from the business but from its employees as well. Training, equipment, and policies may be required.
Investing in employees skills may be a priority and an objective for organizations when they rely on highly skilled teams.
Image may be important when organizations depend on investment, need to extend markets, attract quality employees or to clean past negative image.
Investing in tools
Equipment and tools may be a high priority for a business especially when its related to very specific manufacturing, procurement, development or training.
Without such priorities and planned resources, the organizations may not be stable for the long term. All BVOP offices representatives and key roles need to understand this, the current organizational priorities and why the organization takes or does not take certain actions, investments or directions.
The BVOP suggest additional and necessary priorities on which organizations need to focus attention:
- Growing an internal positive atmosphere
- Managing organizational issues
Growing an internal positive atmosphere
Positive attitude, confidence, and calmness are equally important for people and business.
Confident and positive people are more productive and bigger production rates increase profit and image and the 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 ordered by priority.
The transparency of the list provokes a fair and clear definition of problems, and multiple organization management offices and key roles have access to the list and update it. These can be interested parties such as C-Level positions, portfolio, and program directors, human resources directors, and other key roles in the organization that can support the productive management of the organization.
All offices, executives or key roles managing the transparent board of organizational issues should commit to solving the issues ordered by priority (from top to bottom). If an issue on a top position cannot be processed or resolved at a current stage, the interested parties focus on the next issue from the list.
Understanding and aligning with priorities
All offices representatives and important key 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 are planned and forthcoming.
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