Economics

Back and forth Shareholder value

By 18. März 2015 No Comments

“Did you know that In a survey of 400 CFOs, two Duke University professors found that fully 80 percent of the CFOs said they would reduce discretionary spending on potentially value-creating activities such as marketing and R&D in order to meet their short-term earnings targets. In addition, 39 percent said they would give discounts to customers to make purchases this quarter, rather than next, in order to hit quarterly EPS targets. Such biases shortchange all stakeholders.”

Is the result published in the latest article of McKinsey in March 2015. If this is true, how can we create value that makes sense? Find the right long term goals and kick this short milestone survival behaviour. This is not a question of targets and measurement, but a question of culture, trust and leadership. Awarding quaterly numbers is not the same as awarding and developing people who think strategically for the business, because they understand the business. If you want to change this situation in your company, have to start changing from the top – change the measurement practice from regular to unregular and predictable – and change followers to people that can make decisions. By shaking up our long-held assumptions about how and why the system works, we can improve it.

This is where Cenandu can help you with – bringing shareholder value in a normal relation to other stakeholders, understand the drivers of a company and use your people as enablers to make it happen. Cenandu has the financial knowledge, the behaviour knowledge of an organization and the psychological knowledge how to get people in the driver seat.  Our strength is facilitation with one head in different topics at one workshop.  As generalists  we develop concepts and learning paths that bring all the threads together.