Good value hunters think holistically. They address revenue and cost together, and they don’t separate people, process, structure, technology, and change management. To improve profitability organizations can hunt for value on the revenue and the cost side of the business. In practice they focus disproportionately (or even solely) on the cost-side. This is done for a variety of reasons, including accuracy and timing. Value hunting produces the best results when it combines both revenue and cost in one comprehensive program.
There are several reasons organizations choose to focus their value-hunting efforts only on cost or only on revenue. The same reasons obstruct the ability to treat people (including structure), process, and technology as an unbreakable system. Managers have learned that the best way to treat an issue is to break it down into manageable subparts and then tackle each subpart in isolation. In this process of isolated problem-solving, identifying systemic relationships is often overlooked. In some cases management thinks that funding constraints mandate that a project cannot be that broad. This is a self-imposed limitation; the organization still has options. We have seen value created in many ways through successful transformational programs. But by far the highest and most sustainable value has been produced when organizations' solution encompasses all dimensions (people, process, structure, technology, and change management) together.