Integrated Reporting Insights - the Value Creation Model

09 Jun 2020 by Mike Tisdall

In this, the first of our video series on aspects of integrated reporting, we take an in-depth look at the Value Creation model.

Value Creation (or depletion, as the case may be) is probably the most fundamental core principle of integrated reporting – the ability of an organisation to create value for itself and other stakeholders and society over time.

And the Value Creation Model is the flow diagram in virtually every integrated report that illustrates how a company’s operations adds value to the various financial and non-financial capitals that it utilises.

As companies globally are adding more and more information into their Value Creation Models, Insight Creative’s Mike Tisdall is observing them drowning in so much complexity that they’re ceasing to communicate effectively.

This video is for viewers who already have a reasonable understanding of the principles of the Value Creation Model and are ready to dig deeper into the nuances. It takes a brief overview of the anatomy of the VCM, as outlined by the <IR> Framework, and then focuses on some of the components that routinely cause confusion or get overlooked.

Value Creation Model anatomy

We take a close look at the important difference between Outputs and Outcomes; the role of risks, external operating environment, the company’s strategy, and how much detail the business model itself should attempt to incorporate. 

And we pose the questions: how much is too much? And what’s more important – content or reader engagement?

Related Posts. You might also like.

26 Nov 2020 by Mike Tisdall

The Sanford Integrated Report Journey

It seems that wherever we turn in corporate New Zealand, the Sanford integrated reports are held in the highest esteem and the benchmark that other companies measure their integrated reporting progress by.  We...

30 Jul 2020 by Mike Tisdall

Integrated Reporting Principles - Alignment in storytelling

There are a number of reasons why ‘alignment’ is a good word to keep in mind when planning your corporate reporting – and integrated reporting in particular. This eight minute video spells them out, and goes on...

14 Jul 2020 by Mike Tisdall

Our 5-Year Rollcall of ARA Winners

Every year when the ARA Awards (Australasian Reporting Awards) are announced, we quietly congratulate each other, knock together a social media post and move on to the pressing projects of the day. But this year,...

23 Jun 2020 by Mike Tisdall

Integrated Reporting Insights – The connectivity principle

This video in our series on integrated reporting looks at the guiding principle of ‘Connectivity of Information’. This is the bit where <IR> asks you to join the dots between the various things that are...

view all