The Outsider CEOs share a worldview, which includes attention to capital allocation and per-share value, as well as emphasis on cash flows over reported earnings, and focus on highly decentralized operations, highly centralized capital allocation, investment in their stock, and discipline and patience when it comes to acquisitions.Despite its importance, most business schools don't have courses on capital allocation. However, two equally well-managed companies with different capital allocation strategies will have widely divergent long-term results. Most CEOS tend to focus more on operations. The two core tasks CEOs have are management of operations and deployment of capital.However, the Outsider CEOs profiled in this book outperformed the S&P 500 twenty times over. Jack Welch of General Motors, widely considered to be an all-time great, outperformed the S&P 500 by a factor of three. The best way to measure a CEO's performance is to measure the increase in per-share value during their tenure.
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