Sunday, June 05, 2005

Shareholder Value Creation

When a business model is not creating value........it could be due to a number of factors:

poor selection of strategy options, lack of core competencies, or the full potential of the strategy yet to be realised.

However, without a framework to measure and manage, management gets overwhelmed .......

When formulating strategies, there is a need to understand the underlying principles....... .

Behind every product or service exists an individual consumer. ............ To satisfy a need, .............. If you can figure out that need, and the customer keeps coming back for more, ...........You need to articulate your success .......learn to understand the process that lead to your success and be able to replicate that process over and over again.


In the education arena, we believe this to be exciting time. Hopefully, we elect to be in the blue ocean ( as oppose to the red ). Again, we need to apply some basic principles that have placed us in good stead. Looking out for the weak signals. There are a number....and I will name a few ( keywords or buzzwords as you will call it ) :

technology, unarticulated, unsatisfied needs, lifelong learning, mobility, choices, bandwidth-on-demand, outside-inside, open-source codes, buzz, talent, the(mis)behaviour of markets, randomness.


We apply a simple test: When one makes a purchase, and is not satisfied with the purchase how does one expect the store to response? And what is the typical response of the store's representative? Sometimes lame excuses, stonewalling, perhaps less ( much less ) frequently would you think they deserve an accolade. Maybe most of us get miffed, and without a choice, we move on. What we experienced first as a customer is the symptom e.g. indifferent service. The root cause ( e.g. poor strategy selection, lack of core competencies ) is at a higher level. So it is better to go to the root and fix it. The consequences are fairly obvious.

Just take a winning business model, and you may notice how responsive is the customer service. Prompt response makes good marketing sense. Each and every customer is your maven, and maven has influence beyond his personal attributes. Leverage this to your advantage and not to your disadvantage.