Translating Strategy Into Shareholder Value

Raymond J Trotta



Too often there are serious missed signals between a company’s stated goals and the methods employed to try to reach them. Translating Strategy into Shareholder Value is a unique look at how the planning process relates to the achievement of shareholder value, and ways to ensure that the two directly complement each other. Using tools and a special case study to analyze past, present, and future performance, the book takes readers through a host of steps, including:

* Comparing existing strategy to the competition and the economy as a whole

* Analyzing productive capabilities and costs

* Bringing nonfinancial metrics to test how future strategy creates value

* Selecting the right analytical tool and looking at strategic solutionsIf corporations are to truly maximize their success, managers need to understand how to translate corporate strategy to the bottom line -- and that means seeing the big picture.

What will you learn from this book

  1. Value-Based Management: The book emphasizes the importance of value-based management, where decisions are made with a focus on maximizing shareholder value.

  2. Alignment of Strategy and Value: Trotta discusses the need for alignment between corporate strategy and shareholder value creation, ensuring that strategic decisions are consistent with creating value for shareholders.

  3. Financial Metrics: The author highlights the use of financial metrics such as Economic Value Added (EVA) and Cash Flow Return on Investment (CFROI) to measure and track shareholder value creation.

  4. Strategic Planning: The book emphasizes the role of strategic planning in translating corporate strategy into actions that drive shareholder value.

  5. Performance Measurement: Trotta discusses the importance of performance measurement systems that link operational performance to shareholder value creation.

  6. Risk Management: Effective risk management is highlighted as a key component of value-based management, helping to protect and enhance shareholder value.

  7. Communication: The author emphasizes the importance of clear communication with shareholders and other stakeholders about the company's strategy and its impact on shareholder value.

  8. Employee Incentives: Trotta discusses the role of employee incentives in aligning employee behavior with shareholder value creation, such as through stock options or performance-based bonuses.

  9. Continuous Improvement: The book stresses the importance of continuous improvement in all areas of the organization to sustain and enhance shareholder value over time.

  10. Strategic Flexibility: Finally, Trotta discusses the importance of strategic flexibility, where companies are able to adapt their strategies in response to changing market conditions and new opportunities.

Language English
ISBN-10 0814405649
ISBN-13 9780814429334
No of pages 270
Font Size Medium
Book Publisher Amacom
Published Date 19 Sep 2003

About Author

Author : Raymond J Trotta

2 Books

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