Value Adjustment Mechanism Canvas

#The problem this canvas solves

In Haier's model, each Micro-Enterprise establishes a VAM with its Industry Platform: a mix between an investor term sheet, a contract, and a corporate budgeting statement. It defines capital, milestones (inflection points), and how value is shared based on performance - giving the ME's owners real skin in the game, sharing both risk and reward.

#When to use it

The Value Adjustment Mechanism (VAM) Canvas structures the investment and incentive relationship between a Micro-Enterprise and its Industry Platform. It defines capital needs, operating expenditures, inflection points (milestones), and how value is shared based on performance. Use it when incubating new MEs or renegotiating existing investment relationships.

#The canvas

The canvas in the updated Boundaryless brand (full resolution — click to zoom). A print-ready PDF and editable SVG are also available on request.

#Canvas structure

#ME Name & VAM Timeframe

Identify the ME and the time period covered

#Value Proposition

#Micro-Enterprise Owners

#Capital Expenditures

#Operating Expenditures

#Cashflow Allowance

#Inflection Points' Definition

#Inflection Points' Effect

#How to use it

Structure the investment relationship from capital needs through milestones to value sharing.

#Steps

1. Basics — Identify ME, owners, and timeframe
2. Capital & OpEx — Detail all upfront and ongoing investment needs
3. Cashflow — Define any cash advance requirements
4. Inflection Points — Set clear milestones with dates and success metrics
5. Value Sharing — Define how success at each milestone affects rewards

#Tips

• Inflection points should be objectively measurable
• Include both financial and ecosystemic value metrics
• Balance risk/reward between company and entrepreneurs
• Review and adjust VAM as conditions change

#Connections with other canvases

#Informed by

• Micro-Enterprise Canvas — ME structure determines VAM parameters
• Ecosystem Micro Community Canvas — EMC participation affects value flows

#Complements

• Micro-Enterprise Canvas — VAM and ME together define unit structure and incentives

#Used in techniques

• Analyzing Organizational Elements
• Implementing the Portfolio Strategy

#Used in pipelines

• Restructuring the Portfolio

#Related reading

• An Entrepreneurial, Ecosystem Enabling Organization — Explains VAM contracts in detail with Haier examples

#Resources

• Guide reference: 3EO Toolkit User Guide - VAM Canvas chapter
• License: Creative Commons Attribution - Share Alike 4.0 International
• Version: 1.0

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Canvas · Part of 3EO Toolkit · v1.0