Executive Insights

Volume VI, Issue 1 | January 1, 2004 | By: Robert Rourke

L.E.K. Consulting has worked with clients helping them align and size their organization's capabilities around the changing needs of the marketplace. This resulted in companies improving their short-term profitability and enhancing their ability to capitalize on future growth. This piece identified the symptoms that warrant a strategic restructuring initiative and then shared the process that L.E.K. used to drive maximum benefit from organizational change.

Volume V, Issue 3 | September 1, 2002 | By: Carol Wingard

Entering a new geographic market, whether just across the border or thousands of miles overseas has again become an attractive growth strategy. To be successful, management must access the difficulties of capital flow, the exposure from inadequately protected intellectual property, and the added costs of working with an unfamiliar government bureaucracy for each country it considers. This issue outlines the strategic assessment process for evaluating international growth opportunities. L.E.K. Consulting identifies which countries provide the best fit by analyzing each country against ranked criteria determined in conjunction with our client. For our clients this means ensuring that they have selected the country that has the highest probability of success.

Volume V, Issue 2 | June 1, 2002 | By: Peter McKelvey

Creating value through acquisitions has proven to be a perilous strategy. Often, the seller knows more about the business and its markets than the buyer. This asymmetrical knowledge can cause the buyer to over pay and result in the destruction of large amounts of shareholder value. How does one avoid costly strategic misreads when completing acquisitions? The answer lies in recognizing what you are buying, understanding how it fits into your overall strategy, and carefully developing your post-acquisition plan.

Volume V, Issue 1 | March 1, 2002 | By: Chris Kenney

Most studies suggest that when it comes to the "M&A game," acquirers generally lose. If the odds of success are so poor, why do acquisitions remain such a core component of corporate growth strategies? This article breaks down the acquisition process and demonstrates the many requirements for value creating acquisitions. The three drivers of success, Analytical, Process, and Behavioral are discussed in detail and the most common pitfalls that managers encounter are identified. The overconfidence demonstrated in many acquisitions can be replaced by informed appreciation of M&A opportunities and a greater likelihood of "beating the odds."

Volume IV, Issue 2 | March 1, 2001 | By: L.E.K. Consulting

Forecasting revenue can be a very challenging task for managers at all levels of an organization. Whether it's a new product utilizing new technologies or a product line extension, developing trustworthy information from a broad range of internal and external sources is a necessity. Accurate forecasts early in the product development life-cycle can make the difference between a yes/no decision on the project or influence alternative development pathways. Forecasts for pre-market technologies are also imperative when considering acquisitions, alliances or licensing opportunities.

Volume IV, Issue 1 | January 1, 2001 | By: Peter Smith

The challenge of moving value management concepts and practices from the corporate offices into the business units has remained difficult. These failures are even more frustrating when the results of implementations have demonstrated a sustainable competitive advantage to those who have succeeded in developing a value management culture. What are the key differences between the espousers of free cash-flow and the truly fully integrated implementations? In this newsletter, L.E.K. Consulting spotlights some key pitfalls that impede or block the development of a shareholder value focused culture and provides practical suggestions for avoiding these problems.

Volume III, Issue 1 | September 1, 2000 | By: Dan Schechter, Bill Frack

Like all M&A activity, deciding if, when, and in what form to separate some part of a company's assets needs careful objective analysis to determine what action will create the most long-term value for shareholders. This newsletter provides key insights into structuring analyses for equity separation propositions and shares L.E.K. Consulting's experiences with both traditional companies trying to maximize their often undervalued technologies and new economy businesses looking to develop the most appropriate entities for facilitating growth and attracting capital. They offer the reader a pragmatic framework for measuring risks and rewards, and determining what the appropriate alternatives should be.

Volume II, Issue 1 | September 1, 1999 | By: Chris Kenney

With market fluctuations taking valuations on a roller coaster ride, every CEO and CFO needs to be prepared for the Board's inevitable question, "Why is our stock tracking at the level that it is?" The Market Signals Analysis process is meant to demystify the expectations or signals that the buy and sell side analysts have about a company. By gathering data from both internal and external sources and comparing, a clearer picture develops. By isolating both "perception" and "strategy" gaps proactive steps can be taken to communicate with the market and adjust valuations accordingly.

Volume I, Issue 2 | June 1, 1998 | By: Marc Kozin

It follows that, as instrumental as value management is in objectively valuing internal strategies, it is also extremely useful in valuing potential acquisition transactions for both bidders and sellers. Without the data-driven, fact-based profile of the target, companies often fall victim to faulty analysis or emotionally driven deals. In this Executive Insights, we discuss the four "acquisition pitfalls" and how to avoid them.

Volume I, Issue 1 | January 1, 1998 | By: L.E.K. Consulting

Corporate management has an ongoing mandate to maximize shareholder returns. While value management is an important corporate focus, it is not specific and accountable enough for operating executives, who must also know which factors most influence value and which can be most easily affected. These "value drivers" are the primary focus of successful shareholder value companies. Key topics in this newsletter include: What are Value Drivers, How do you use Value Driver analysis to identify key priorities, and Managing Value Driver performance.