Translating Strategy into Shareholder Value

Preface

STRATEGY deals with creating a sustainable competitive advantage for a business. The focus of business strategy is traditionally long-term in nature and is primarily concerned with the longevity of the business. Finance, on the other hand, is concerned with making management decisions in order to achieve its objective of increasing wealth for its owners. Finance looks at ways to obtain, manage, and utilize funds for wealth maximization. The two disciplines are many times perceived as working against each other. Yet, business leaders know that firms that have a sustainable competitive advantage become more valuable than their competition.

I have focused on the problem of aligning strategy with value creation for many years—as a management ...