Patent ID: 8386297

Claim:
A method of optimizing the value of a business organization through value targeting and budgeting, comprising: performing value targeting analysis using computer hardware to determine key drivers of value for the business organization, the performing comprising: generating a first set of potential strategies for the business organization, comprising: querying a computer database of historical financial data for a plurality of peer organizations; comparing the business organization to at least one peer organization based on at least one comparison metric; and generating a first set of potential strategies based off the results of said comparison; generating a second set of potential strategies for the business organization, comprising: predicting future cash flows of the business organization based on historical financial statements and one or more financial inputs; implementing a discounted cash flow valuation model that includes predicted future cash flows that are discounted at a cost of capital and added to a terminal value calculation to determine a total value of the business organization; generating, by a computer, present and future discounted cash flows and one or more stock prices of the business organization based on the historical financial statements, the one or more financial inputs, the discounted cash flow valuation model, and one or more key financial drivers; evaluating the relative sensitivity of one or more stock prices of the business organization to changes in key financial drivers; and generating a second set of potential strategies based off the results of said evaluation; generating a third set of potential strategies for the business organization, comprising: determining the effect of implementing potential strategies upon the value of the organization based on the present and future discounted cash flows and one or more stock prices of the business organization; and generating a third set of potential strategies based off the results of said determination; preselecting strategies from among the first, second, and third sets of potential strategies based on a multivariable approach; incorporating at least shareholder value; communicating the set of preselected strategies to the business organization's highest level management; selecting core strategies by the highest level management from among the set of preselected strategies; communicating the core strategies from the highest level management to a lowest level of the business organization's management; creating core budgets by the lowest level management, corresponding to the core strategies; and measuring the performance of the business organization based on progress made in implementing the core strategies and any deviation from the corresponding core budgets.