Strategy value ff
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The document presents a conceptual framework for C-suite executives on navigating challenges to drive organizational growth and profitability through value creation. It emphasizes the need for effective decision-making and collaboration among leadership to unlock hidden value and align strategies with operational realities. Additionally, it highlights a looming talent gap in the C-suite, urging companies to proactively prepare for future leadership challenges.
Strategy value ff
- 1. Copy Rights Protected. Farooq Omar SVN -2019 Strategy – Passing the Strategic Test through Value Creation Nuero-Value Creation Model for C-Suite Executives A Conceptual Analytic Approach As a c-suite executive in an organization and industry, it is almost imperative that the job demanded to create value for driving the profitability, growth and the ‘sustenance’ of the demanded growth. The intent is the navigating, exploring and detecting the right direction along with your chosen team to avoid disruptions and change facing the industry. In the prevalent times the corporate executives faces ever growing challenges in shape of financial, political, demographics, economic and above all the ‘technology’, altering the shape and intensity of competition. Top executive as a savvy manager needs and expected to absorb and digest large amount of information to make correct decisions with agility in a limited timeframe, never witnessed before, even it seem unrealistic at time. The questions arise of “how do the decision managers get a full view of the dynamics underlying this critical challenge? Any slackness can create or intensify both the systematic and unsystematic risks in value generation chain in the intended strategy. The corporate and business (horizontal) senior line mangers has a very difficult task of pinpointing the options and actions to make right decisions which must be able to drive the firm forward with minimum fluctuations. The expected value at each stage of the strategy in transition has hidden variables of different attributes and characteristics. The senior executives and senior business managers are desired to ‘Unlock’ these hidden values in continuity in order to make sure that their ship is sailing in the right direction and almost free from ‘oceanic storms’ down the strategic journey.
- 2. Copy Rights Protected. Farooq Omar SVN -2019 There is always a sustained burden on the decisions makers as ‘strategists’ to be ready to face the newer challenges to drive the organizational productivity and growth to satisfy all the stakeholders. The most difficult question faced by the people who are delegated this task of improving the overall productivity and growth of their organization is “How to do it? I wish, the answer is simple as a rule of thumb, but it’s not unfortunately. Though, it can be put in much simpler terms as, “ for those who are capable of Unlocking the mystery behind finding the right set of Strategic Value Enablers’ are most like to seek, see and find opportunities’ to dive organizational growth in short, medium and long terms (goals). The perimeters underlying the growing challenges facing by the top managers or decision makers gyrates around not only facing challenges, but rather ‘identifying’, understanding and clearly communicating and transmitting the ‘value drivers’ within the organizations and keep zoom-focus on their efforts and decisions where it matters. One has to go through information from day to day operations, instituted by operational areas of the organizations and the information on the continuous impact from the outcomes of these functions and operations. All such information and data assimilated o daily – periodic basis has a direct impact on the financial – economic side of organizational productivity. Just as a small example, such outcomes (subjective they may look in generality), but bear direct impact on Net Operating profit (NOPAT), Invested Capital (IC), Return on Invested Capital (ROIC), Return on Equity (ROE). Financial spreads, Current Value, Operating Enterprise Value Value Creation
- 3. Copy Rights Protected. Farooq Omar SVN -2019 (EV). Future Values and consequently trickles to the Strategic Organizational Value in shape of ‘Total Returns to Share holders’ (TRS). The Strategy Aspiration through ‘Value invention and pièce de résistance’. (A keen understanding of how business decisions affect value and are reflected in financial metrics and accounting statements & vice versa when often over looked) The basic principle is “Value Generation” which will deliver the value to the share and stakeholders. What goes on behind this machinery has umpteen nuts & bolts and managerial gearbox parts which work together to grind the inputs to produce Strategic Value Creation’; the aim of any organization. Roles determine perspectives. Miles’s Law—the notion that where you stand is a function of where you sit—is central to how strategy gets made in practice. Just as important, the way decisions are made throughout an organization has vital consequences for strategy. “That level of control almost never exists in a large organization—quite the reverse: At the same time that corporate staff is beginning to plan for and roll out initiatives, operating managers invariably are already acting in ways that either undercut or enhance them Strategic decisions are critically affected not just by senior corporate managers, but also by midlevel general managers, their teams, and the operating managers who report to them. These intermediate-level general managers run the fundamental processes that make multibusiness, multinational companies feasible. They are general managers who report to other general managers. Their jobs involve translating broad corporate objectives such as earnings and growth into specifics that operating managers can understand and execute on. They provide corporate management with an integrated picture of what their businesses can accomplish today and might achieve in the future by determining the package of plans, programs, and activities that should drive the strategy for that business. When you read a proposal to commit scarce people or capital, you should calibrate what you are reading against the track record of the executive who signed the document. If the signing executive has a near- perfect record of proposals implemented, then you know that there is probably little downside in what you are reading, but the upside may be significantly underexploited. The price of misused executive time is high. Apart from the frustrations that individual managers suffer, delayed or distorted strategic decisions lead to overlooked waste and high costs, hastily conceived and harmful cost reductions, missed new product and business development opportunities, and poor long- term investments.”
- 4. Copy Rights Protected. Farooq Omar SVN -2019 Such Process of Value Creation can seldom be achieved in company’s lacking a Net-Work of top leadership and C- suite executives each has a considerable successful experience & exposure of other related expertise- skilled domains. (Diversified experience curve rather having a long pin point focal experience – which is predominant in lesser developed corporate culture due to poor HR succession Nuero- Receptors Diversified Analytics Collaborative Thinking Co- Value Creation Data Pivotal Point of Value Creation & Decision Making at C- Suite &managerial level Decisions Based on Collaborative Co- Creation Of Values as a Neuron -Network
- 5. Copy Rights Protected. Farooq Omar SVN -2019 planning models. Failing to link it with Corporate and overall firm’s intended strategy. Leading to mis-- aligned and ill-conceived values due to non-aligned c-suite too ‘individualized’ mindsets ( Resistance – conflicts of interests and no collaborative timely(agile) decisions. It confirms the old McKinsey mantra of strategy-drives-structure-drives-staffing still holds true; yet basic foundational recruitment and development efforts can reinforce the organization’s leadership culture. A very real constraint on the financial performance of most companies is top management’s capacity to reach good decisions quickly and in harmony with all departmental heads & minds in place. Both quality and pace are important. Obviously, poor decisions made too quickly will lead to actions that destroy shareholder value. But good—even great—decisions made too slowly can depress company performance as well. Unfortunately, research shows, few companies manage executive time in a disciplined or systematic way. Harvard Business Review (Michael Mankins) Companies in a number of industries are facing a potential C-suite challenge—an alarming amount of qualified candidates to fill roles that are likely to become vacant, due to retirement and other factors, in the next 10 to 15 years. According to a research and a well written white paper (Mike Mgsig, 2017); A number of factors, ranging from demographics to increased market competition, are placing the possibility of filling CEO roles, in particular, that become vacant in the next 10 years at risk. Even though a considerable number of executives and board directors are beginning to see significant talent gaps emerge in the C-Suite, including the CEO's office, many companies haven’t realized how much is at stake—and many aren’t strategically preparing to address the critical shortfall. To protect themselves from the potentially damaging productivity and profitability delays and the public image-related investor complications that can arise from leadership uncertainty. The author’s intent is to give a conceptual view of its importance of Uncovering the mystery of Value Creation and not to discuss all the technical parameters and variables to run this machinery. By Farooq Omar Corporate and Business Strategy Consultant https://www.linkedin.com/in/farooqomarr/