Suggested by a great article from McKinsey
Great article from McKinsey : How to build an alliance against corporate short-termism. Let's precise that what is at stake and referred to as 'corporate short-termism' is the nature of actions CEOs should favor to reach higher long-term value for their businesses. It is not then favoring patience against actions to be taken but rather favoring focus and actions that lead to higher long-term value.
When reading this article you will understand in context the key reasons why IRRQuest® Value Framework and Solutions will benefit to you - in both personal and professional ways - and - most directly - to your Business or Company, making it a life-long investment that you will be thankful for over time :
- "Pursue long-term value even at the expense of short-term earnings" :
IRRQuest® benefit#1 : Manage value monthly/quarterly/yearly within a 3 to 5-year time-frame
- "Take charge of investor communications" :
IRRQuest® benefit#2 : Manage your reporting in a timely and collaborative manner
- "Resist artificial moves to meet earnings target" :
IRRQuest® benefit#3 : Focus on what matters and continuously improve
While it is necessary to have a vision that is made of reachable goals that together will bring value, there are lots of paths to get where you want to be. And even a lack of short-term earnings may become an opportunity to create even more value. Adopting IRRQuest® Value Framework and Solutions will help you : define the value of your business from the vision and strategic objectives that bring the most out in your competitive advantages ; define and demonstrate the short-term impacts of a situation against the long-term goals pathways'.
As you can read in the article, and we agree with, most of investors want 'to be educated'. Unfortunately they won't educate you unless you're a lucky man. You have to know. You have to show you are in control and demonstrate what you do is the right thing to do. You have to communicate. IRRQuest® will frame strategic and financial information for your business so that it will enhance both reactivity and quality in your communications and proactivity in your decisions. Most importantly, though they are of high interest in investor communications, they provide the necessary guidance to master your strategy implementation and control and allow your teams to collaborate efficiently while focused on the strategic objectives and key results.
While it may be tempting to show great artificially, don't do that with your investors. Don't do that at all, we'd say. Trust is key, you have to value that and they will follow. It's not because your earnings are not as expected at one time that you're not doing great. Always focus on actions that are consistent with the path to your long-term goals, while assessing and adapting your strategy continuously : here is the best challenge and IRRQuest® Solutions have been designed to help growth business leaders - and 'to be' - just do that.
I hope you enjoyed your reading, and may you wish, please add your comment. You’re always welcome to share your thought, whatever.
All the best