In Need of Internal Capitalism

4 Pages Posted: 17 Sep 2009

Date Written: August 26, 2009

Abstract

Senior executives face a merciless treadmill from shareholders who seek an adequate return on their capital and demand increasingly higher levels of performance. These executives know the consequences of failing to meet these expectations - the share price falls and management shake-ups are possible. However, despite increasingly decentralized decision making in many corporations, market discipline and accountability is often not carried down the organization and performance suffers. To address this, executives must embrace a culture of Internal Capitalism. They should explicitly develop strategies, make decisions and assess performance inside the company to boost efficiency, growth and sustainability over time. This paper explores the need for Internal Capitalism and the steps required for embracing this owner-like culture.

Keywords: internal capitalism, value based management, shareholder value, business strategy, discipline, residual income, growth

Suggested Citation

Milano, Gregory Vincent and Treadwell, Steven, In Need of Internal Capitalism (August 26, 2009). Available at SSRN: https://ssrn.com/abstract=1474264 or http://dx.doi.org/10.2139/ssrn.1474264

Gregory Vincent Milano (Contact Author)

Fortuna Advisors LLC ( email )

822 N. A1A Highway
Suite 310
Ponte Vedra Beach, FL 32082
United States

HOME PAGE: http://www.fortuna-advisors.com

Steven Treadwell

Fortuna Advisors LLC ( email )

One Penn Plaza
36th Floor
New York, NY 10119
United States

HOME PAGE: http://www.fortuna-advisors.com

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
43
Abstract Views
741
PlumX Metrics