There are two elements here which customers are continuously focusing on and where a simple solution can help. Both of these points are highlighted in the graphic.
There is the question concerning growing of EBITDA. This is captured in the Value plan column and reflects how much value is being created and how the top line can increase.
Many clients have the experience that this reported gain is never realized in the actual financial figures. This is the second question raised. Many times the true gain is not captured as we have leakage. These are the losses noted in the graphic. Typically due to reliability issues, quality problem and basic operational stability.
Cognitive bias also plays a roll. Value plan actions are overestimated and leakage underestimated. Lack of good project management results in the gain being less than expected. We can, with simple techniques, capture and retain more value
The approach is shown below in the innovation funnel.
Tracking each action in a portfolio approach ensures we stop spending when the action, based on actual market figures, and the window of opportunity has gone
The leakage is noted in the “onepager” and quantified by industrial controlling so transparency dictates where we are losing the most money.
Through this transparency and turning th EBITDA bridge into a managerial one operations can act decisively and allocate resources precisely and effectively.