Why Us
Specialized, focused, helping
companies tackle complex projects.
YOUR CHALLENGES / OUR FOCUS
Creating economic value requires explicit linkages between strategy and finance. Relentless focus on this connection will lead to improvement in capital allocation, valuation, and portfolio optimization.
1 Increase Return
A company must earn a return well above its cost of capital for meaningful financial performance. Meeting this objective requires the dual capability of attaining high profitability and high asset utilization simultaneously.
2 MAXIMIZE CUSTOMER VALUE
Not all customers are created equal: concentrate on the right customers for strategic advantage and align products and services to the needs of your most valuable customers for maximum financial value.
Source: “Customer Centricity” by Peter S. Fader, 2012, Wharton School Press, Philadelphia, PA.
3 DRIVE SUPERIOR GROWTH
Drive business growth faster than the market to achieve market share dominance. Drive corporate growth faster than the industry to stay ahead of the competition.
4 BALANCE GROWTH AND RETURN
The primary challenge is to strike the right balance between generating returns in the short term and investing in growth for the long term. Growth and return are related as relative market share drives ROI.1 As a result, the choice of strategy – which markets to serve and how to compete – becomes paramount as it ties directly to financial performance.
Source: (1) “The PIMS Principles Linking Strategy to Performance” by R.D. Buzzell and B.T. Gale, 1987, The Free Press, New York, NY.
CORE CONCEPTS
OUR VIEWS, WHICH SHAPE OF WORK
Cut through the noise and focus on the 3 to 5 issues that matter.
Economic Profit (EP) is a unique and complete measure of value creation: it combines profit and the cost of capital used to make that profit – all in one number.
EP = Revenue – Operating Cost – Capital Cost
EP provides a powerful link between strategy choices and financial performance.
The quality of the company’s strategy determines the rate and duration of its profitable growth.
Competitive forces eventually drive drown corporate returns (ROIC) to the cost of capital (WACC).
Without impact, strategy is just a plan.
STRATEGIC ACTION WHEN IT MATTERS
| Strong | Defend Business Secure two or more strategic control points |
Accelerate Growth Pursue growth initiatives leveraging strategic control points |
| Weak | Redesign business model or divest |
Reduce Costs Reduce costs and manage cash flow efficiently |
| Weak | Strong | |
