VBM Thought Leader: Jim McTaggart
The Value Imperative: Managing for
Superior Shareholder Returns
About Jim McTaggart: biography / resume
/ curriculum vitae
Jim McTaggart used to
be Vice President of Wells Fargo Bank, and co-founder of the bank’s
Corporate Finance Department. Jim McTaggart is one of Marakon’s founding
partners. He has written and spoken extensively on the subject of
managing for value.
published work includes:
- The Value Imperative: Managing for Superior Shareholder Returns,
coauthored by Peter Kontes and Michael Mankins (Free Press, 1994),
- Feature articles for Strategy & Leadership, Shareholder Value, Mergers &
Acquisitions and Interfaces,
- A number of essays in the Marakon Commentary series.
In addition, Jim
McTaggart has also served on the Advisory Board for Strategic Management at
MIT’s Sloan School of Business. He's an avid runner and plays tennis
regularly. In addition, he serves as Chairman of the Board of Trustees of
Greenwich Hospital and on the Yale-New Haven Health System.
The Value Imperative: Managing for Superior Shareholder Returns
Moving beyond the strategies that managers have employed to create
shareholder value, management consultants Jim McTaggart, Peter Kontes, and
Michael Mankins reveal their powerful new framework for the systematic,
day-to-day management of shareholder value. The authors attack head-on the
fundamental weaknesses in current management practices, namely, the
stranglehold that budgeting has over strategic planning and the lack of
imagination in management plans that prevents real changes and consequences.
They provide a systematic approach to "value based management" that
eliminates these weaknesses, offering proven strategies for managing large,
complex companies to consistently produce superior results for stockholders.
Building on more than 16 years of consulting experience with many of the
largest and best-known companies in North America, Europe, and Australia,
the authors delineate the fundamental principles of value creation, as well
as the primary obstacles. Starting with the principle that "cash flows drive
value," McTaggart, Kontes, and Mankins show how to create a single governing
objective that will enable managers to make decisions most likely to
increase the company's competitive, organizational, and financial strength.
Building on the
objective of maximizing shareholder value, they outline a Value Based
Management framework that directly links a company's strategies and
organization to its value in capital markets. Using real-world examples,
they describe how to develop business and corporate strategies that
substantially improve competitive position and increase market value, often
within only two to five years.
And as most large
companies lack the internal processes necessary to manage for value on a
sustained basis, the authors show managers how to build the five key
processes that are institutional value drivers: governance, strategic
planning, resource allocation, performance management, and top management
compensation. Mastering these capabilities is fundamental to the ongoing,
consistent creation of shareholder value over time.
All companies, the authors argue, inherently possess an enormous potential
to create higher value for their shareholders. With hundreds of examples of
companies that have successfully employed the beliefs, principles, and
practices of value based management, this book shows general managers how to
generate superior returns and realize their business's full value potential.
Some people consider this rather practical than theoretical book the bible
of all books on value creation and how to achieve it. It should certainly be
on every top manager and financial practitioner's bookshelf. An very good
blend of Value Based Management and Corporate Strategy.