1 Maximize Value Created
A company must earn a return well above the cost of capital for meaningful financial performance – i.e., economic profit. Meeting this objective requires the dual capability of attaining high profitability in conjunction with high asset utilization.
2 Achieve Superior Value Growth
The value the company generates must achieve superior growth – i.e., the value created by the company must grow faster than the industry’s, as indexed by corresponding equity markets. Anything less will eventually set the company further back.
3 Drive Rapid Execution
Strategic action requires rapid execution to be effective – a strategic action must be implemented within six months of formulation, before the ground shifts from under your feet once again. Ultimately, rapid execution confers the most significant competitive advantage.