9780470596302

Business leaders have experienced some of the greatest economic upheavals in history, forcing many to reconsider how to lead their companies. The CEO, Strategy, and Shareholder Value reveals the five major choices every leader faces, including performance objectives, participation choices, positioning choices, organizational choices, and risk management choices. This seminal book from a true thought leader offers business managers an innovative, new look at how to most effectively deliver shareholder value.

PETER KONTES has a long and distinguished career advising chief executives on all aspects of strategic management. Peter was the cofounder and former chief executive of Marakon Associates, a firm cited by Fortune magazine as "among the half dozen firms that form the elite of strategy consulting." He co-authored a previous book, The Value Imperative. He has been a guest speaker at conferences sponsored by the Economist, Fortune, the London School of Economics, and the World Economic Forum, and has had articles appear in a number of publications including the Financial Times and Directors & Boards. He is currently an Executive-in-Residence at the Yale University Graduate School of Management and continues consulting independently.

Preface	p. xi
Acknowledgments	p. xv
Introduction	p. xvii
Foundations	p. 1
The Purpose of Strategy	p. 2
The Role of the CEO	p. 4
Five Choices That Shape Strategy	p. 6
A Strategic Management Framework	p. 9
The Economics of Strategic Management	p. 11
Economic Profit	p. 11
Economic Profit and Strategy Valuation	p. 13
The Financial Drivers of Economic Profit and Equity Value	p. 15
The Strategic Drivers of Economic Profit and Equity Value	p. 17
Dealing with Mythology	p. 23
Chapter Summary	p. 29
Choosing the Right Performance Objectives	p. 31
Aspirations	p. 32
Business Unit Objectives	p. 34
Company Objectives	p. 39
The Tyranny of Top-Down Targets	p. 39
Chapter Summary	p. 46
Making the Right Participation Choices	p. 49
General Considerations	p. 50
Assessing Participation Opportunities	p. 51
Offering Choices	p. 63
Geographic Market Choices	p. 67
Customer Segment Choices	p. 72
Corporate Participation Choices	p. 75
Chapter Summary	p. 82
Making the Right Positioning Choices	p. 85
Positioning Choices and Competitive Advantage	p. 86
Business Models	p. 88
Execution Capabilities	p. 107
Corporate Positioning Choices	p. 111
Chapter Summary	p. 122
Making the Right Organizational Choices	p. 125
The Institutional Imperative	p. 126
Governance Practices	p. 128
Executive Processes	p. 134
Executive Capabilities	p. 151
Chapter Summary	p. 155
Making the Right Risk Management Choices	p. 157
Clarifying "Risk"	p. 158
Setting Risk Thresholds	p. 160
Portfolio Choices	p. 162
Balance Sheet Choices	p. 166
Ethical Choices	p. 174
Chapter Summary	p. 181
Making It Work	p. 183
Conditions Conducive to Success	p. 183
Priorities for Change	p. 189
The Prize	p. 195
Chapter Summary	p. 198
Economic Profit Growth, Earnings Growth, and Total Shareholder Returns	p. 201
The Data	p. 201
The Analysis	p. 202
Discussion of the Results	p. 204
Economic Profit and Equity Value	p. 207
Valuation Models	p. 207
Maximizing Economic Profit Growth versus Maximizing Equity Value	p. 209
Valuation issues	p. 210
Economic Profit and Equity Value: Illustration	p. 213
Reconsidering the Corporate Center	p. 215
The Need for Change	p. 215
Creating a New Model of the Center	p. 217
Conclusion	p. 221
Ceo Pay Practices: An Alternative	p. 223
Typical Package	p. 224
An Alternative Approach	p. 224
Illustrative Compensation Plan	p. 226
Alerting The Board Early and Often	p. 229
Notes	p. 231
Index	p. 239
Table of Contents provided by Ingram. All Rights Reserved.

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The CEO, Strategy, and Shareholder Value Making the Choices That Maximize Company Performance

The CEO, Strategy, and Shareholder Value Making the Choices That Maximize Company Performance

0470596309

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