ppt课件-competingforthefuture-oregonstateuniversity.pptVIP

Competing for the Future Breakthrough Strategies for Seizing Control of an Industry Creating Tomorrow’s Markets Leadership:Beyond Restructuring In an effort to satisfy investor requirements, ROI (RONA, ROCE) is usually the goal There are 2 components to this calculation - a numerator (net income) and a denominator (investment, net assets, or capital employed) This leads to 2 options for top management - numerator management and denominator management Numerator Management To grow the numerator (net income), top management must have: a point of view about where new opportunities lie must be able to anticipate changing customer needs must have invested preemptively in building new core competencies must provide clear and consistent leadership Denominator Management Many managers realize that it is a lot harder to raise net income, than to cut assets and headcount. Under pressure for a quick ROI improvement, executives reach for the lever that will bring the quickest, surest improvement in ROI - the denominator. Easy and quick, a red pencil is all that is required. Denominator Management The US and Britain have produced an entire generation of denominator managers. These managers can downsize, declutter, delayer, and divest better than any managers in the world! Even before the current wave of downsizing, US and British companies had the highest asset productivity ratios of any companies in the world. Denominator Management Denominator management is an accountant’s shortcut to asset productivity. In a world where competitors are capable of achieving 5, 10 or 15% real growth in revenues, aggressive denominator reduction, under a flat revenue stream, is simply a way to sell market share profitably. Market strategists term this a “harvest strategy” and consider it a no-brainer. Efficiency productivity A company must not only get to the future first, it must get there for less. There is more than 1 path to productivity improvement. While reducing the denominator and k