While all publicly traded companies aim to deliver superior shareholder returns over time, very few are able to accomplish this feat. In fact, less than than two percent of companies are able to reach this goal. But those who have succeeded display five similar traits that are outlined in the book co-authored by Galt & Company’s Scott Gillis (CEO), Lee Mergy, and Joe Shalleck: “Beliefs, Behaviors & Results: The Chief Executive’s Guide to Delivering Superior Shareholder Value.”
Scott Gillis (CEO), Lee Mergy and Joe Shalleck bring readers inside the minds of Fortune 500 CEOs. “Beliefs, Behaviors & Results: The Chief Executive’s Guide to Delivering Superior Shareholder Value” will have you on the way to running a successful organization by teaching you the values behind these five core principles.
Establish the Right Definition of Winning: CEOs and leaders of successful organizations have something in common: they establish a clear-cut definition of winning within their company. Everyone within their organizations are crystal clear on what they’re trying to achieve and how they will measure their success.
Capitalize on Concentrations of Value: In many Fortune 500 companies, less than 40 percent of the capital employed in the corporation is generating over 100 percent of the company’s shareholder value, while 25 to 35 percent of the capital employed is destroying shareholder value. Successful CEOs concentrate economic profits, shareholder value contribution and profitable growth potential. These can be concentrated by company, business, and business segment. Understanding where and why economic profits are concentrated, and how that concentration is likely to change in the future, provides management with a tremendous advantage in deciding where to invest time, effort and capital.
Manage to a Value Growth Agenda: The goal of the best CEOs is to find the most value growth in the shortest period of time possible. Jim Kilts, who as CEO turned around the performance of three of the world’s most notable consumer brand companies: Kraft Foods, Nabisco, and Gillette, calls this way of thinking “doing what matters.”
Differentiate Strategies and Allocate Resources Differentially: Successful CEOs don’t just use strategies that include statements of intent; they give specific descriptions of how a business intends to outperform its competition by creating greater customer value and shareholder value.
Build the Organizational Conditions and Capabilities to Manage Value: Successful CEOs must ensure that strategies and resources are in place to maximize the economic profit growth of each business unit and the company as a whole. They must also establish organizational beliefs and conditions that increase the odds that the actions of the company are aligned with shareholder interests.
About the Authors
Co-authors Scott Gillis (CEO), Lee Mergy, and Joe Shalleck are co-founders of Galt & Company. They advise some of the world’s leading CEOs and have been associated with the corporate success of notable companies such as Coca-Cola, Gillette, Clorox, McCormick, BB&T, Alcan, Abbott Laboratories, MeadWestvaco, Caterpillar and others. Their book “Beliefs, Behaviors & Results: The Chief Executive’s Guide to Delivering Superior Shareholder Value” is aimed to help other CEOs achieve the same results.