AXCELerating Value Creation

Axcel’s strong track record of value creation has been driven primarily by the operational improvements that have become our hallmark. The AXCELerating Value Creation framework has been developed to ensure that management, board of directors and Axcel adopt a consistent and focused approach in this area.

Our proven model draws on 20+ years of experience from more than 40 investments, and although every company and situation are unique, leveraging best practices increases the chances of success.

STRATEGY – Strategy is about making choices – you cannot be everything to everyone, so you must choose a playing field where you can win. As the future is never certain, strategy processes must be data-driven as well as creative. Strategic choices are best made by considering distinctly different options, so it becomes clear not only what you want but also what you do not want. While the format of the strategy document is not important, an effective strategy should always boil down to five integrated choices.

VALUE LEVERS While every company is unique, a number of standard techniques can be used to measure and drive value in the form of ten specific value levers. Estimating the full value potential from a top-down perspective helps both to realise this potential and to raise the bar. From there, realistic short-term targets can be set, and implementation plans developed. The challenge is rarely to identify theoretical potential, but rather to reap the benefits of attaining and maintaining a new performance level. Focusing on a limited number of initiatives in high-spend areas will deliver faster returns than a more general approach. Systematic efforts to raise performance in one area will typically also improve the ability to make significant gains in other areas.

OPERATIONAL BACKBONE – Core processes are the engine of any company. These will vary with the business model, but most companies have a dominating logic that determines what they will be. These processes must be tuned in order to implement the strategy successfully and lift performance to a new level. When companies do not succeed with a given strategy, it is often because core processes are not in place or optimised.