Ten Important Ideas About Value Creation: Powerpoint Presentation

Abstract

This PowerPoint deck is used in the classroom to provide a broadly useful framework for value creation. The theme is that we are better equipped to deal with value creation by first gaining insights into how we build knowledge. Part 1 discusses core beliefs critical to a sharpened worldview that impacts how we perceive problems, the data we collect, and the solutions we devise. This ties into my book, Reconstructing Your Worldview: The Four Core Beliefs You Need To Solve Complex Business Problems. Part 2 reviews two practical applications. Part 3 focuses on the ideas presented in my book, Value Creation Thinking, and emphasizes the need for clarity about the purpose of the firm and for managements to give top priority to sustaining a knowledge-building culture. Included is an explanation of the life-cycle valuation model, which is used extensively by money management firms worldwide. Also included are long-term, life-cycle charts of major firms that illustrate how managerial skill and competition interact to determine firms' long-term financial performance and, ultimately, shareholder returns.

Keywords: value creation, worldview, knowledge, life cycle, CFROI, culture

JEL Classification: D21, D83, G10, G12, G30, G34, G38, L21, M10, M14, M41, M44