A company exists in order to improve the well-being of its stakeholders. Achieving this task is based on the ability of a company to connect with its customers. How a company connects with its customers is through a value proposition.
There are different financial indicators to monitor the financial results of a company. Focussing on ‘value creation’ is sometimes considered ‘rocket science’ for the local management team. However, by explaining the steps of calculating ‘value’, management will quickly see what is meant by it and how they create it.