Setting Aspirations and Targets
The principles of making value happen can be powerful tools to help a company achieve its goals— provided it knows what these goals are and how they link to value creation. All too often, a company’s externally communicated goals represent just an incremental increase over historical performance, and may link more to accounting measures such as earnings per share than to more economically based measures. Equally, its internally communicated goals, as embodied in a mission or vision statement, may have nothing to do with what people actually try to achieve on a day-to- day basis.
A company wishing to make value happen needs to develop an aspiration that combines two dimensions: an inspirational statement of intent and value-linked quantitative targets.
The principles of making value happen can be powerful tools to help a company achieve its goals— provided it knows what these goals are and how they link to value creation. All too often, a company’s externally communicated goals represent just an incremental increase over historical performance, and may link more to accounting measures such as earnings per share than to more economically based measures. Equally, its internally communicated goals, as embodied in a mission or vision statement, may have nothing to do with what people actually try to achieve on a day-to- day basis.
A company wishing to make value happen needs to develop an aspiration that combines two dimensions: an inspirational statement of intent and value-linked quantitative targets.