A well-defined company strategy creates value and is properly connected with the rest of the enterprise. It needs to answer questions, such as:
- Which of our businesses should we continue to own? Which should we divest? What gaps do we need to fill through building, buying or partnering?
- How much should we invest organically in each of our businesses? What can we afford to pay for acquisitions?
- Which of these alternatives do investors favor? What strategic moves could increase our intrinsic value and market value, and reduce the gap between them?
To highlight the kinds of rigorous analyses you should perform to help make these strategic decision, we often use our proprietary diagnostic tool kit called the Full Potential Paradigm™ (FPP).
In How the Full Potential Paradigm can help CEOs achieve long-term value, we demonstrate how detailed and focused analytics help support strategic choices about which markets to invest in and which to exit and illustrate how FPP can help in setting operational targets, informing portfolio strategy and understanding investors’ value drivers.