Value Creation vs. Valuation – An Integrated View

I spend a lot of time talking about where the value lies in businesses. One reason is the influence of the first half of my career in high risk corporate lending. It leads me to tie what I see back to financial value. The other reason is the shifts that have occurred during my career in our overall economy.  As we laid out in Intangible Capital, the shift to a knowledge-based economy has dramatically changed the sources of value in business. And it has increased the awareness of the external costs of corporate actions.

These shifts are easy to illustrate by comparing and contrasting the concepts of value creation and valuation. Continue reading “Value Creation vs. Valuation – An Integrated View”

The Need for an Integrated Definition of Sustainability

A few months ago, I had a conversation with a Chief Sustainability Officer of a company in the northeastern U.S. She had been with her company for over 20 years and definitely took the long view of its success. They had been actively engaged in understanding and improving their environmental and social footprints for many years. She explained that they were now extending their sustainability goals to include not just “external” sustainability but also “internal” sustainability. This was going to include greater focus on lean management and strong processes. She called these “internalities” as opposed to “externalities.” She saw these changes as relevant to her mission as a sustainability officer. Continue reading “The Need for an Integrated Definition of Sustainability”

What is Sustainable Value Creation and How Can You Apply It Today?

The rise of the integrated reporting movement is provoking conversations about how companies create value over time. And it comes at an important moment to help businesses deal with the unique challenges of our time: Continue reading “What is Sustainable Value Creation and How Can You Apply It Today?”

Market Basket – The Case for Sustainable Value Creation

Market Basket makes the case for sustainable value creationHere in New England we lived the Market Basket saga a couple years ago. It was an unforgettable cautionary tale for all businesses. And a guide for modern management. If you’re not from around here, you can live it through the great book We Are Market Basket by Daniel Korschun  or at his appearance at the XPX Boston Summit next week.

These deep lessons on business come from an unlikely source: a regional grocery store chain that doesn’t even have a website. Here’s the abridged version of the story. The grocery chain was founded in 1917 in Lowell, MA, a struggling mill town. From its first store to its 75th, the chain kept a strong focus on providing high quality products at low prices to its customers who live on limited or fixed incomes. Continue reading “Market Basket – The Case for Sustainable Value Creation”