As part of my Master’s degree in Strategic Foresight & Innovation, I created a “value logic model” to show how a company will make measurable progress towards its strategic goals.
In our business-strategy course, Stephen Davies taught us the KPMG Value Management method, which maps out how a company will realize the benefits of their carefully-thought-out strategy.
The “value logic model” is a roadmap to actually implement a strategic plan. It defines a series of Change Initiatives that will each effect a Change in a Capability of the company. These changes have measurable Benefits, which contribute towards Transformation Goals, leading ultimately to the Strategic Objectives measured by Key Performance Indicators.
(It’s important to distinguish the KPIs measuring your company’s ultimate success, from the metrics & indicators you use to track progress on the change initiatives.)
I found it easy to see the chain of cause-and-effect and create this value logic model, for a vertical farming company that we studied. Thanks to Kate Kudelka, Merwad Abdullah and Ashley Spiegel for reviewing & revising this as part of our group project.