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Chapter 2. Decoding Value > Translating Value Through the Chain

Translating Value Through the Chain

Communicating value seems difficult because it is invisible. If the terms for value at each layer become visible, then understanding the code for value suddenly becomes easier to do. Figure 2-2 is a sample financial value chain that shows how the definition of value changes as measures move through the four layers of an organization. A financial value chain is defined as a cascading, linked set of measures where the left-most measure is a broad, financially based measure of a Senior executive and the right-most measure is a specific, performance-based measure of an Individual contributor.

Figure 2-2. A sample financial value chain.



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