Tag: management team

Overcoming Barriers to Growth to Improve Business Valuation (P4)

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Part 4 – Overcoming Barriers to Growth to Improve Business Valuation Maximizing the business valuation involves improving the management team performance when it comes to planning and executing the strategic plan.  The valuation of the business by buyers and investors such as private equity depends on how well the president or CEO has addressed the issues such as these disconnects between strategy and performance. These  disconnects  must  be  analyzed  for  root cause and a plan developed to shape and nurture Read More …

Overcoming Barriers to Growth to Improve Business Valuation (P3)

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Part 3 – Overcoming Barriers to Growth and Improving Business Valuations Management team effectiveness is a very large part of the assessment of business valuation by business buyers and investors such as private equity firms. Critical areas that teams typically address to reduce dysfunction include: Communications Understanding how each member communicates and then how to effectively communicate and resolve conflicts within the team Personal behavior Understanding one’s personal behaviors and how those behaviors impact the team’s Collective Effectiveness Team problem Read More …

Overcoming Barriers to Growth to Improve Business Valuation

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Buyers and investors in companies are buying or investing in the potential for future growth. They assess the organization for predictability of future earnings as part of their business valuation. Ensuring the future becomes reality results not only from keen insight and excellence in execution, but also from overcoming any barriers to growth. Essential actions to overcome the barriers to growth include: Aligning the organization to the plan Reducing team dysfunction Defining competencies  and  behaviors critical to the strategy Companies Read More …

A Process For Improvement of Management Team Performance

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One of the value drivers that contributes significantly to the valuation of a company is the effectiveness of the management team. The New Growth Strategies SM process (Figure 3)  was developed by Avantt Consulting to drive the paradigm shift and concomitant behavioral changes in management teams needed to implement these new goals.  While there is considerable detail behind each of the three rings, the elements that are relevant to this discussion center on the top two rings. The result of Read More …

IMPLICATIONS OF CHANGES

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Improving the valuation of a company will clearly imply changes need to be made to the ways in which the management team functions. The implications are clear:  the growth strategies that are inhibited by the corporate dysfunctions require courage to come against the inertia, politics and fear in management teams to address the dysfunctional behaviors.  What is required is a new definition applied to the goals set in organizations.  Essentially, there are two types of goals: task goals and behavioral Read More …

Management Team Dysfunction and Its Effect of Valuation

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One of the major drivers of business valuations is the assessment of the growth potential of the firm. The effectiveness of the management team, and therefore the dysfunctional issues of the management team has a significant impact on the business valuation. Much of the business press has traditionally talked to the issue of looking beyond downsizing, TQM, reengineering, and other tactics to new growth strategies to deliver globally competitive organizations.  As the earlier referenced Wall Street Journal article pointed out, Read More …

An Aligned Management Team Drives Company Growth

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If one were to ask Lou Gerstner when he was the CEO IBM why IBM lost 75% of its value in the early 90’s, one could surmise his answer from a review of articles in which he discusses the issues.  What Mr. Gerstner would NOT tell you is that IBM did not have the talents, the skills, the technology, the knowledge, the capital or the markets.  No, what Mr. Gerstner might well tell you is that it was HOW the Read More …