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

Praise for The CEO, Strategy, and Shareholder Value
"Peter Kontes presents a clear–eyed framework for making the top management decisions that have a large and lasting impact on company performance. If your schedule only allows you time to read a few books a year, this should be one of them."
—James E. (Jes) Staley, CEO, J.P. Morgan Investment Bank
"This is a first–class book that can make a difference in achieving results."
—Jim Kilts, former chairman and CEO, The Gillette Company
"Peter Kontes has written a masterful and eminently readable book that makes clear the real work of the CEO. He debunks much of the voodoo that surrounds trendy management and performance concepts. It′s a must–read for all who are charged with leadership in these turbulent times."
—Arthur Martinez, former chairman and CEO, Sears, Roebuck and Company
"The marriage of theories on leadership, strategy, and finance is long overdue. In this book, Kontes brings these themes together around the principle that growing economic profit over time is, or should be, the common overriding objective of all three. He cogently argues and amply illustrates the pitfalls of conventional business practices across many areas, including target setting, competitive positioning, and capital management. Executives who take the time to read this book will come away with a wealth of ideas for changing these practices and significantly improving the performance of their companies."
—Stan Garstka, Deputy Dean and Professor in the Practice of Management, Yale School of Management

Spis treści:
Preface xi
Acknowledgments xv
Introduction xvii
Chapter 1: Foundations 1
The Purpose of Strategy 2
The Role of the CEO 4
Five Choices That Shape Strategy 6
A Strategic Management Framework 9
Chapter 2: The Economics of Strategic Management 11
Economic Prof it 11
Economic Profit and Strategy Valuation 13
The Financial Drivers of Economic Profit and Equity Value 15
The Strategic Drivers of Economic Profit and Equity Value 17
Dealing with Mythology 23
Chapter Summary 29
Chapter 3: Choosing the Right Performance Objectives 31
Aspirations 32
Business Unit Objectives 34
Company Objectives 39
The Tyranny of Top–Down Targets 39
Chapter Summary 46
Chapter 4: Making the Right Participation Choices 49
General Considerations 50
Assessing Participation Opportunities 51
Offering Choices 63
Geographic Market Choices 67
Customer Segment Choices 72
Corporate Participation Choices 75
Chapter Summary 82
Chapter 5: Making the Right Positioning Choices 85
Positioning Choices and Competitive Advantage 86
Business Models 88
Execution Capabilities 107
Corporate Positioning Choices 111
Chapter Summary 122
Chapter 6: Making the Right Organizational Choices 125
The Institutional Imperative 126
Governance Practices 128
Executive Processes 134
Executive Capabilities 151
Chapter Summary 155
Chapter 7: Making the Right Risk Management Choices 157
Clarifying "Risk" 158
Setting Risk Thresholds 160
Portfolio Choices 162
Balance Sheet Choices 166
Ethical Choices 174
Chapter Summary 181
Chapter 8: Making It Work 183
Conditions Conducive to Success 183
Priorities for Change 189
The Prize 195
Chapter Summary 198
Appendix I: Economic Profit Growth, Earnings Growth, and Total Shareholder Returns 201
The Data 201
The Analysis 202
Discussion of the Results 204
Appendix II: Economic Profit and Equity Value 207
Valuation Models 207
Maximizing Economic Profit Growth versus Maximizing Equity Value 209
Valuation Issues 210
Appendix III: Economic Profit and Equity Value: Illustration 213
Appendix IV: Reconsidering the Corporate Center 21 5
The Need for Change 215
Creating a New Model of the Center 217
Conclusion 221
Appendix V: CEO Pay Practices: An Alternative 223
Typical Package 224
An Alternative Approach 224
Illustrative Compensation Plan 226
Alerting The Board Early and Often 229
Notes 231
Index 239

Nota biograficzna:
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 coauthored 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 School of Management and continues consulting independently. He can be contacted at pkontes@greenwichadvisorygroup.com.

Okładka tylna:
Praise for The CEO, Strategy, and Shareholder Value
"Peter Kontes presents a clear–eyed framework for making the top management decisions that have a large and lasting impact on company performance. If your schedule only allows you time to read a few books a year, this should be one of them."
—James E. (Jes) Staley, CEO, J.P. Morgan Investment Bank
"This is a first–class book that can make a difference in achieving results."
—Jim Kilts, former chairman and CEO, The Gillette Company
"Peter Kontes has written a masterful and eminently readable book that makes clear the real work of the CEO. He debunks much of the voodoo that surrounds trendy management and performance concepts. It′s a must–read for all who are charged with leadership in these turbulent times."
—Arthur Martinez, former chairman and CEO, Sears, Roebuck and Company
"The marriage of theories on leadership, strategy, and finance is long overdue. In this book, Kontes brings these themes together around the principle that growing economic profit over time is, or should be, the common overriding objective of all three. He cogently argues and amply illustrates the pitfalls of conventional business practices across many areas, including target setting, competitive positioning, and capital management. Executives who take the time to read this book will come away with a wealth of ideas for changing these practices and significantly improving the performance of their companies."
—Stan Garstka, Deputy Dean and Professor in the Practice of Management, Yale School of Management