Liquidating business issues

07-Jul-2017 13:20

A business leader must increase shareholder value, and the public-sector leader must increase public value.

(Shareholder value increases through either increasing stock price and/or paying dividends on stock that is owned, results that are usually measured as total shareholder return over some period of time.

The what and the how are usually accompanied by strategic plans detailing who will do what, with which resources, by when…and all the other details that allow for effective and efficient capital and people allocation and coordination.

Since people generally follow leaders better when they understand why they are being asked to move in a certain direction, strategies usually provide cogent reasons for action.

To be an effective leader of either a private- or public-sector organization requires you to do five things: A leader has to be able to sense what’s coming up ahead, to see opportunities that should be the target of action and to see threats before they materialize. As a colleague of mine once noted, “It’s no good mistaking the edge of the rut for the horizon.” (Professor Richard (Dick) Hodgson, a gifted teacher of Leadership at the Western Business School, often used this phrase).

Leaders who only see what they have seen before, whose scope and vision is limited by their past experience, prove to be inadequate in a rapidly changing world.

The competitive advantage is unlikely to come from the uniqueness of the strategies; far more likely, the company that executes the strategy with brilliance will win.

There are many elements that go into the execution of strategies.

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Leadership is about getting results for your followers.Those who foresaw the fall of the Berlin Wall, the emergence of China as one of the world’s great economies, the resistance of many countries to genetically modified foodstuffs, the dramatic realignment of the U. dollar against the euro and other currencies in the early part of this century, made – or lost — fortunes.This outward-and-forward-looking requirement cannot be delegated to a small set of specialized scenario-creators or confined to a few days or weeks of the year.Arguing which is more important is, therefore, pointless. A day later, I received a phone call from a very agitated executive asking me to return them immediately.I did so, but without adding that they were indistinguishable from the strategies of four other banks that I had reviewed in the previous three years.

Leadership is about getting results for your followers.

Those who foresaw the fall of the Berlin Wall, the emergence of China as one of the world’s great economies, the resistance of many countries to genetically modified foodstuffs, the dramatic realignment of the U. dollar against the euro and other currencies in the early part of this century, made – or lost — fortunes.

This outward-and-forward-looking requirement cannot be delegated to a small set of specialized scenario-creators or confined to a few days or weeks of the year.

Arguing which is more important is, therefore, pointless. A day later, I received a phone call from a very agitated executive asking me to return them immediately.

I did so, but without adding that they were indistinguishable from the strategies of four other banks that I had reviewed in the previous three years.

Business opportunities are often created or destroyed by both direct influences of economic, political, societal and technological forces as well as complex interactions between these forces.