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Cashflow

Use cashflow (flow of value) to justify which decision is best. Perform value analysis from at least two perspectives.

  1. The value to be provided to your customers
  2. The value to be gained by selling to customers

Reasons

  • Prove benefit when closing complex sales
  • Justification of capital expenditure
  • Budgeting and resource planning
  • Product roadmap prioritisation

Valuable Customer Stories

Net Present Value is quantifying belief in a story. Assign stories to ledgers

  • Allocate specific revenue streams to a dedicated ledger
  • Proportion feature benefits to a revenue stream
  • Proportion waste eliminating tasks to expense ledgers
  • Proportion sustaining expenses

Link customer interview stories to standardised process workflows that quantify

  • Lost opportunity
  • Lost time
  • Cost of errors

Requirements

Future Bets

  • Put yourself in the customer's shoes. Where the customer is any person with a problem-dream story to solve.
  • Walk their journey with them, observing emotional triggers and quantifying estimates where value is lost.
  • Convert stories into worksheets linking back to the transcribed conversation.
  • Proportion stories to ledgers as appropriate
  • Link aggregated stories to a cashflow forecast for each ledger item.

Refer back to the collection of hero's journey stories for both marketing and product development.

Analysis

Net Present Value, IRR, Payback

  • Have you spoken to critical domain experts?
  • What is the riskiest assumption?
  • Do you believe the expectations?
  • What is the minimal bet to test the path?

Applications

  • Business forecasting, running a business as a series of six-week strategic projects

Questions

What decisions need to be made?

Has a credible critical-path for delivery?

Right team balance?