Future Value
The Future Value method allows organisations to directly address succession planning issues. For companies it helps them to demonstrate the potential value of the business to investors. For public sector organisations it identifies heritage projects that will continue to add value once public subsidy has finished.
For communities it helps to build sustainable visions for the future that act as a roadmap for the community as a whole and demonstrate how the community will make the desired transition.
The process is highly interactive and generates an innovative and creative environment creating realistic views of the future. It helps clients to identify the key areas for investment, develop new products and highlight effective investment.
Futurist’s Future Value techniques focus on capturing future potential within an organisation in order to create a saleable or transferable product.
- For a private sector business value is determined by future revenue streams not by its current standing. The approach takes each of the major areas of the business and maps its progress through a set time frame, at the outset the client sets an ‘exit’ point. Traditional planning techniques would develop strategies up until this point, but the Future Value approach extends beyond that demonstrating to prospective buyers how the company might progress and expand after any purchase has taken place.
- For a community in transition the requirment is for robust, suatainable strategies that reduce depency and promote social capital. The approach defines an exit point in terms of independence and sutainability and defines the conditions that have to met by all stakeholders to achive the vision
- For public authorities future value techniques set the criteria for the extent of the intervention. They do this by looking past the end of the project at how future value continues to be created once the intervention has finished. the analysis yields the key features of a sustainable project and identifies key risks and evaluation criteria for effective investment.
The process is split into three distinct time periods;.
Demonstrating Value - In this period the company, community or project is building up to the exit date.
Developing Value - The post-exit period when the new investors and, or the stakeholders will continue to derive benefit and realise the potential.
Long Term Vision - The overall goal of the project following the growth planned at this moment in time. This is the investable proposition and will determine the value of the organisation to any potential investors or the optimum level of public sector intervention.
Following the completion of each stage of the chart, the client will be left with a three stage growth and investment plan which will ensure that the project reaches the levels defined in the ‘Vision.’
Key Benefits
The benefits of Future Value to the customer are as follows;
• A structured approach to the Succession Planning process
• The process creates a collective view amongst the participants of how the organisation will progress in the future, ensuring that all sides are working to the same goal
• An interactive approach that is relevant for both short and long term planning
• A clear illustration of the various areas of the organisation which helps to identify strengths and address weaknesses both internally and externally
Identification of key risks and performance measures to ensure that the project remains on track.
