Creating a value architecture draft
1. Create a map with the Initiative Value Architecture Template.
Here's an example output of the template.
2. Based on your understanding of the business model and the customer journey that the client provided as context, create a "Hard KPI tree" for the client.
The primary KPI is the metric that the initiative ultimately strives to impact, usually revenue metric. The primary KPI can be mathematically derived from its children with algebraic equations.
By definition, you can be confident that each KPI in this section has impact on the primary KPI.
Coming soon: We're working on AI to help you build the hard KPI tree.
3. Add "Bets" to the map based on the launches the customer provided as context.
Bets are your initiatives, projects, or experiments to move metrics. Your aim is to understand which bets are having an impact (and which ones are not) so they can place better bets over time.
4. Add "Soft influencer" metrics as needed to the map to connect the bets to the hard KPI tree.
"Soft influencer metrics" may not have a direct relationship to the KPI tree, so you will need to assess how confident you can be in their impact. The idea is that they can be moved by the the client's bets.
Here's an example of what your value architecture draft might look like for the digital sales initiative (from the example context).
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