A Value Creation Plan can contain a set of individually sensible initiatives that become much harder to deliver when they run at the same time.
The same leaders, teams and functions are often needed across several priorities, creating competition for resources, management attention and decisions.
The same people are often needed across the plan
Take a pricing programme. It may appear as one initiative, but delivering it could involve Sales, Finance, Product and Technology, as well as significant management time.
Add an acquisition, a systems programme and entry into a new market and some of the same people and teams can appear repeatedly.
McKinsey found that around 20% of initiative owners in transformation programmes were managing 80% of the total impact.
This concentration matters. Senior people still have businesses to run, and functions supporting several strategic initiatives still have their day-to-day responsibilities.
Looking across the whole plan can show where several initiatives depend on the same people at the same time.
Timing and dependencies matter
A business may have the resources and capability to deliver everything in a three-year plan, but not several of its most demanding initiatives in the same quarter.
There are also dependencies between initiatives and functions. Pricing may require Sales, Finance and Technology to make changes in the right order. An acquisition can create dependencies across most of the organisation.
Starting everything earlier doesn't necessarily mean finishing everything earlier.
Changing the sequence, moving resources or deciding that something can wait may improve the chances of delivering the priorities that matter most.
Look at the demands together
Looking at each initiative separately can miss the pressure created by the plan as a whole.
It is useful to understand:
Who is needed across multiple initiatives
When the demands on those people and teams will peak
Where initiatives are competing for the same resources
Which dependencies could hold up delivery
This doesn't mean reducing the ambition of the VCP. It means making choices about priorities, resources and sequencing with a clearer view of what the organisation is being asked to deliver.
Looking at these demands together can show where the plan is likely to create pressure, and where changing the sequence, resources or responsibilities could improve execution.
Want to understand what your VCP is asking of the organisation?
At Scalewell, we work with PE investors and portfolio company leaders to understand what their plans demand from the organisation, identify what could get in the way of delivery and make changes that improve execution.
If you'd like to discuss how this applies to your business or portfolio company, please select a time to meet with us here.
