Value-Based Management: The book emphasizes the importance of value-based management, where decisions are made with a focus on maximizing shareholder value.
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.
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.
Strategic Planning: The book emphasizes the role of strategic planning in translating corporate strategy into actions that drive shareholder value.
Performance Measurement: Trotta discusses the importance of performance measurement systems that link operational performance to shareholder value creation.
Risk Management: Effective risk management is highlighted as a key component of value-based management, helping to protect and enhance shareholder value.
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.
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.
Continuous Improvement: The book stresses the importance of continuous improvement in all areas of the organization to sustain and enhance shareholder value over time.
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 |
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ISBN-10 | 0814405649 |
ISBN-13 | 9780814429334 |
No of pages | 270 |
Font Size | Medium |
Book Publisher | Amacom |
Published Date | 19 Sep 2003 |
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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.