Featuring Michael Mauboussin, Head of Consilient Research, Counterpoint Global, Morgan Stanley Investment Management
Complimentary HBR Video Webinar
Monday, March 11, 12:00 pm EDT
Most company leaders believe they know the essential ways their organization creates value. But how deep does that understanding go, and could some core beliefs be wrong?
In fact, many companies today are limited by using the wrong metrics, focusing almost exclusively on the profit and loss statement, while overlooking the power of free cash flow and return on capital as key ingredients in total shareholder return.
In this HBR webinar, Michael Mauboussin shared a framework to trace the process of value creation from the basic economic forces that shape a company’s performance—sales, costs, and investments—to the resulting impact on value drivers.
In addition, he discussed:
- How to determine the right metrics to guide organizational value and growth.
- How to use the resulting insights, with help from data analytics and artificial intelligence, to identify value creation and growth opportunities.
- How to communicate the key drivers of success, so that frontline employees have the information they need to understand the impact of their day-to-day actions on company cash flow as well as revenue.
- How to strategically allocate capital and resources to focus on the best bets.
This webinar was sponsored by EY. To learn more, visit ey.com/reimagine and read the related article sponsored by EY on HBR.org: Companies Need to Focus More on Cash Flow and Return on Capital.
