Part II – Creating Value

Part II discusses the process of creating value in enterprises of all types – e.g., public, private, non-profit, and governmental.

Part II begins with the article, Steps to Value Creation. You can access this article by clicking the link below.

Steps to Value Creation

The Intrinsic Value Style of Investment Management, which serves as a foundation for creating and investing in enterprise value, is described in in the following article.

IV Style of Investment Management

The Value Creation Process Chart shows graphically how value is created. The accompanying description of the chart discusses each of the elements in the chart, their relationship to one another, and further defines how value  is created.

Value Creation Process Chart

Value Creation Process Chart Description

The Value Drivers Possibilities Frontier is an exact description of the value creation process, whereas the Value Creation Process Chart discussed above is a summary of the process. The Value drivers Possibilities Frontier is discussed at length in the paper, A Theory of Value Drivers: A Grounded Theory Study, which can be found in Part I of this workbook.

Value Drivers Possibilities Frontier

The Intrinsic Value Line (TM) is a new concept introduced by value driver theory. The following article discusses the concepts of intrinsic value, the Intrinsic Value Line (TM), and Intrinsic Value Added (TM).

Intrinsic Value and the Intrinsic Value Line

Management tools are a key part of the value creation process. They provide the essential link between the value drivers present in an organization and the creation of value in the organization. The following article discusses management tools.

Management Tools

The management tool matrix is a listing of management tools that can be used as a starting point and a checklist in the selection and understanding of various management tools. This matrix is in very rough draft form at the current time. It will be completed at a later date.

Management Tool Matrix 2

The Chief Value Officer (CVO) is the person in the organization who is responsible for keeping the organization focused on the creation of value. This article discusses the Chief Value Officer position.

Chief Value Officer

The Value Driver Flowchart provides another way of understanding the value creation process using value drivers and management tools.

VD Flowchart

Grassroots Enterprise Financing is an area of financing that comes between the friends and family round of financing and the angel round of financing. This article discusses this area of financing along with the more traditional rounds of financing.

Grassroots Enterprise Financing

It is important to have an understanding of where the economy is today, where it is going, and what major factors are driving economic growth. This article discusses a simple approach to economic forecasting that can answer these questions.

Simple & Effective Econ White Paper

The following spreadsheet contains the major categories of financing. It is a very comprehensive list that goes beyond the categories that one normally thinks of when considering financing options. Use this spreadsheet to build your own, personalized financing list (we have several hundred names in our list).

Funding Matrix 111913

The minimum required Internal Rates of Return (IRR) for various investments, according to one authoritative source, are listed in the table below.

VC Required IRR

The Socrates Model (TM) is designed as a complete, all encompassing analysis model for the review and analysis of any investment. It is still in development, but is included here at the present time as parts of the model are fully functional and may be useful for our subscribers.

Socrates Model (TM)

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