Value Chain Analysis for Boards
Board can consider various perspectives of looking at a VCA, which include:
- Strategy context
- Corporate Operating and Governance Model Context
- BEPS Context
What are the key factors driving the strategy of a company, which can be accomplished by observing the key trends in the industry, the focus, and trends of the market forces, key factors of growth of competitors etc?
Corporate Operating and Governance Model context
Next, based on an analysis of the external market references as well as financial performance of the company, it should be determined how the company operates as well as how key decision makers influence these value drivers.
Based upon the above, the functions performed in the company can be given a weight/score and depending on this weight/score, the remuneration for each of the “people function” should be determined.
The VCA-Spaces video below demonstrate various features of our environment that could contribute to VCA board members’ capabilities.