Strategy Academy

- CEOs are judged against business performance. To delivery the numbers is the key to success. In another, the key may be being prepared to take risks and drive major change. - For the CEO, once the honeymoon is over – and it is always over remarkably quickly- getting the business to deliver is all that counts. - It takes time for the CEO’s action to filter through into business performance. In the early days, therefore, personal impact is most important. - In the first three months the CEO is expected to demonstrate an understanding of the business and to start building a strong team. - By the end of six months the CEO should have presented a new strategy. By this stage, business performance is beginning to be important. but CEO can still expect to be judged against the creditability of the new strategy. - After the first year, however, there should be clear signs of improvement in business performance; and - By the end of year two, there must be a significant upturn in TSR (Total Sha

- CEOs are judged against business performance. To delivery the numbers is the key to success. In another, the key may be being prepared to take risks and drive major change. - For the CEO, once the honeymoon is over – and it is always over remarkably quickly- getting the business to deliver is all that counts. - It takes time for the CEO’s action to filter through into business performance. In the early days, therefore, personal impact is most important. - In the first three months the CEO is expected to demonstrate an understanding of the business and to start building a strong team. - By the end of six months the CEO should have presented a new strategy. By this stage, business performance is beginning to be important. but CEO can still expect to be judged against the creditability of the new strategy. - After the first year, however, there should be clear signs of improvement in business performance; and - By the end of year two, there must be a significant upturn (Econo

1. A successful CEO is a person who maximizes the long-term value of the business to its owners, the shareholders. 2. Creating a long-term value for owners means making an economic profit (EP): a profit that rewards shareholders adequately for investing their capital and one that provides and adequate total shareholder return. 3. The formula for calculating EP (A measure of a company's financial performance) is as follows: EP = Net Operating Profit After Taxes (NOPAT) - (Capital * Cost of Capital) 4. If the shareholders are to benefit, it seems all other stakeholders (customers, staff) must be satisfied. 5. For the CEO, success must stand for the success of the business, not for measure of personal contribution. 6. A successful CEO must understand long-term shareholder value. 7. A successful CEO must understand what it takes to create it. 8. A successful CEO must work out what needs to happen for his/her organization to become a high-performing organization. Source: Mark Thomas wit