AFM203 Chapter Notes - Chapter 2: Swot Analysis, Financial Statement, Law Of Obligations
Document Summary
Decision effectiveness and financial results correlated at a 95% confidence level. Ultimately, a company"s value is no more (and no less) than the sum of the decisions it makes and executes. Executives need to understand their long-tern strategy and objectives and then focus on building a corporate structure that enables leaders to make more informed, timely, and ultimately better decisions over time. Company"s structure results in better performance only if it improves the organization"s ability to make and execute key decisions better and faster than competitors. Decision audit: understand the set of decisions that are critical to the success of your company"s strategy and to determine the organizational level at which those decisions should be made and executed to create the most value. End up with an organization that"s misaligned with your strategy because you have ignored decisions. Cut overhead costs: value of firm 6% above other firms. If they are not doing as well as their competitors.