Increasing Shareholder Wealth by Linking Board, Executive, and Manager Decision Points

摘要

IntroductionrnThis article describes a framework that helped a major new venture to unite the decision-making of the board, the top management team, and key middle managers as new management and board members were brought in to work alongside the four founders. The management team of the new venture was trying to grow the intrinsic value of the company with the goal of an IPO (initial public offering) or outright sale to a larger company. The team felt that a holistic approach was needed to signal to the investment community that unique but sound strategic, operating, and governance practices were being put into place, well ahead of what would be expected in such a new venture. The framework and internal processes that emerged were rigorous but practical, for use by veteran executives who understood how the business worked and how to grow shareholder wealth.This article will describe the framework and, where needed, will refer to the new venture as XYZ. (See Endnote 1 for a description of XYZ). A subsequent project will be a case study about XYZ.