'Contour Maps' for Creating Value

A new book that helps management teams keep on the same page -- by helping identify when they're not.

TOPICS: collaboration/teaming, finance training, human capital

Any strategic undertaking requires alignment among the management team. But identifying areas of agreement and differences can be difficult. Debates, arguments, Delphi techniques, and a host of other methods exist to provide order amidst the chaos of divergent opinions.

Martin O'Neill's introduction of contour maps is a unique method of ensuring your team faces the same view of reality. I wrote a review of O'Neill's book, "Building Business Value," for a future edition of the Institute of Management Accountant's flagship magazine, Strategic Finance. While I enjoyed it in its entirety, its concept of contour maps was its strongest element.

From junior high geography I remember contour maps as a way to review different elevation levels across the U.S. I could compare how high the Rockies sat next to my hometown on the Illinois prairie. I liked how contour maps gave me a sense of high and low points. O'Neill's business adaptation serves the same purpose.

Building valuable businesses is more difficult than ever, and a clear picture of reality is crucial to start managers in addressing key topics. Think of a contour map as a compass overlaid on a bullseye. Each point of the compass represents a different dimension of how your company can generate value. The bullseye represents the relative strength of each driver.

If the management team believes a value driver is a strength, then the team makes a mark near the OUTSIDE of the circle. The marks near the outside of the circle create larger areas to demonstrate an area of value.

Unlike many traditional value measures, I really like the contour map concept. By identifying a small number of value drivers and coming to consensus on where the company is strong and weak, the map helps focus thinking and generates discussion around a common framework. The value drivers are very common across all enterprises and are discussed in much more detail within the book.

When speed and adaptability are the most important traits in business, the entire team must be rowing in the same direction. Contour maps are one part of Marty O'Neill's excellent book on building business value that you can immediately use, on your next project, to create consensus instead of unfocused debate.