Do we want or need High Performance Teams (HPT) in our VUCA 2021 world? More directly for this article, do Top Management Teams (TMTs) need to be HPTs for long-term value creation and growth? When we view the TMT as a proposed HPT, would we rather want or need them to be the good or useful version of a group of distributed and unconnected powerful “feudal barons and baronesses”. I know this seems ludicrous because teams, and the special version of a team called a HPT, seem to have knee jerk and near universal support that they are a “good” no matter what.
This article will be on the technical side. But I think it also presents concepts about competitive strategy, finance and wealth creation that are very important for senior management and strategy and finance professionals. One last point before we begin. I am mindful of the raging debate about shareholder capitalism and stakeholder capitalism. While I am a shareholder value proponent, I need to table this discussion for this article. This debate will not be resolved soon, maybe never. But in the meantime, senior management along with strategy and finance professionals must lead and manage for value and wealth creation, whether enlightened or not.
The Case of Rolex: Introduction to a Study in Competitive Strategy, Longevity, Valuation and Full Potential Using a Comprehensive Model of Firm Valuation
This short piece is an introduction to a comprehensive article applying my model of causation among twenty-two Elements of competitive strategy and firm valuation as a firm moves to its Full Potential. I will apply my model to the Rolex watch company and this longer article will be the first in a new series of case studies on firms.
The Case of Rolex: Excerpt From a Study in Competitive Strategy, Longevity, Valuation and Full Potential Using a Comprehensive Model of Firm Valuation
This short article is excerpted from a much longer article applying my 22 Element Causal Model of firm valuation and Full Potential to the Rolex watch company. This excerpted article follows from a first excerpted article on What Is Causation in Business that was published two weeks prior.
This very short article (for me given my recent lengthy tomes) is a pre-amble to a comprehensive article I will publish in a few days (today is October 19, 2020). The upcoming comprehensive article will be on applying my full causal model of what increases a for-profit firm’s valuation as a firm moves to its Full Potential to the Rolex watch company.
Most of us have heard the phrase “culture eats strategy for lunch.” While trite, there is truth to this phrase. The phrase suggests that culture is a beast, here to stay and difficult to change for the better. This article is for those firms who find they need to change a culture either because it has become toxic or it no longer supports and aligns with the competitive strategy and has become a barrier to performance as measured by increases in the firm’s valuation or its market value.
How can we aid the board of directors in helping to drive increases in shareholder value (SHV) in the publicly traded firm. The principles apply to private for-profit firms as well as they try to maximize owner wealth. In part II of this article readers will learn why this board process has huge implications for corporate culture change in many firms.
This two part article will present a simple and linear looking process to aid the board of directors in helping to drive increases in shareholder value (SHV) in the publicly traded firm. But the principles apply to private for-profit firms as well as they try to maximize owner wealth. The reader will see, this board process has huge implications for corporate culture change in many firms. Thus in the article, I hope to lay out the process and culture required for boards of directors to really up their games.
This article will present a simple and linear looking process to aid the board of directors in helping to drive increases in shareholder value (SHV) in the publicly traded firm. But the principles apply to private for-profit firms as well as they try to maximize owner wealth. If the reader would like a little more background, please see A General Theory of Valuation and One Casual Model of Increasing Firm Valuation.
A General Theory of Valuation and Why Shareholders Are the Most Important Constituents in the Firm-Valuation Gameboard
In my view, we need good theory more than ever in the field and practice of valuation, especially when wedded to firm’s competitive strategy. Things have gotten very emotional around this topic in the last three or so years. This article will present my theory of valuation and why shareholders are the most important constituents in the total system of firms trying to grow their valuation. I will leave competitive strategy’s role in this to another conversation.
Growing Your Firm’s Valuation After This or Any “Impairment Episode”: Key Dilemmas, Decisions and Solutions
The main topic of this article is the notion of “impairment” to your firm’s ability to grow, much less maintain, its valuation after an “impairment episode”. COVID-19 is the most recent such episode and it has affected most firms in the United States and around the world. But pundits are writing this probably won’t be the last virus to cause impairment.
Valuation and Stock Prices in These Crazy Times: One Causal Model of Increasing Firm Valuation – The Ultimate Goal of the For-Profit Firm
I have re-written this article five times in the last five weeks (today is March 25, 2020). As we all know the COVDID-19 pandemic has caused huge losses in the stock market. It makes one wonder how stocks are really valued for publicly traded firms and how non-publicly traded firms (think of your favorite family-owned for-profit business) are valued.