Thursday, July 28, 2011

Making Capital Investments Matter

Too many projects chasing limited capital to invest: Almost all of us are familiar with this scenario. Most large corporations go through the annual rigmarole of creating proposals for capital investments, replete with justifications, projected savings, return on investments, and so on. Asking these two simple questions and plotting it on a simple graph may make this process simpler to make the final choices.

Friday, July 15, 2011

Strategy, Governance and Risk

With the recent financial melt-down, deep economic recession, and continuing drag on revival and growth, the logic would dictate that companies will focus on their business strategy to identify what makes them a winner, where does the value come from, and also focus on governance to promote risk awareness and planning. However, McKinsey Quarterly finds otherwise: In a survey of the company directors, they find that boards neither understand their company strategies any better, nor have they improved the governance.