Unlocking Latent Value… What Does It Mean?
Improved profits and greater efficiency.
Capitalising on assets that exist but are hidden.
Getting everything you can out of what you’ve got.
A Bit of Theory
Every business has a hypothetical ceiling of value. Perhaps the percentage figures for target growth or the revenue described as “wishful thinking”. Latent value is that which is available, but not yet seen, found or used. It is the gap between current reality and future possibility.
Latent value is what is hidden. It is what is available, there for the taking even when the quick wins have been had.
Where To Find Latent Value
Latent value is locked up within operational, functional, educational, psychological, marketing, departmental, employees, clients, compliance, strategy and tactics. Each aspect or silo that makes up a successful business contributes to the labyrinth of latent value.
Irony of Unlocking Latent Value
When you’ve unlocked the value it seems obvious. But it’s only obvious after its unlocked. Why? Because it’s very difficult to unlock a silo by yourself. Thinking and planning on your own or with people who know and have unwittingly built the silos will only get you so far.
How Latent Value Is Unlocked
First, a systematic approach is needed.
Start with the core of your business.
Be prepared to use, what I call, “cubular thinking”. Fly high above your business, simultaneously see the full specialist, client and technological value chains, then dive into the minutiae to snaffle the profit opportunities.
Know there is always an additional 10% to be unlocked in every business.
Focus and capitalise on incremental 1% improvements.
Do you want to unlock the latent value in your business?
If you’re looking for a partner to work with you and get everything you can for your business, please contact me today to discuss how much latent value is in your firm.