1.) First, Stop the Bleeding

Operations and assets expected to generate massive value just a few years ago are now embarrassments. Cut the obvious targets first in order to establish early credibility and momentum

2.) This Time, Value´s for Real

Value creation by corporate PR was never convincing. The Net Bubble, followed by the corporate disasters of 2000-2 put the final nail in the coffin. Tomorrow´s value champion must earn the designation

3.) Looking for Value in All the Wrong Places

Why do even well-managed companies “underperform in value terms by 50 percent?” * One explanation: failure to extract maximum value from all five of the sources within the corporation.

4.) Single Best Value Solution

The target´s right. But maximum value is still missed if the value approach is merely adequate but not exemplar.

5.) Zero Tolerance of Value Destruction

If top management is perceived as hypocritical where value is concerned, the word is depreciated to the level of throwaway consultants´ principle. Unless value destruction is ruthlessly enforced throughout the company, backsliding is inevitable.

6.) Reforming the Value Incentives Structure

Behavior change is key to sustainable Corporate Value Improvement. The right linkage of value incentives and value rewards is key.

Note:

* Beginning of Chapter 1 of the author´s book, The Value Mandate (Amacom, 2001): “Your company is underperforming by 50 percent. In value terms, on a continuing basis”.
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