13 Posts found for Author: Alexander Roos

The theory that value creation comes solely from the act of making positive net present-value investments is of limited use in most modern public companies. Fundamentally, investors price a company’s shares on the basis of their views of the underlying business and the attractiveness of the available reinvestment opportunities. Because such expectations are priced into the stock today, the real value creation task confronting leaders … [ Read more ]

Content: Quotation | Authors: Alexander Roos, Ed Newman, Eric Olsen, Eric Wick, Gerry Hansell, Hady Farag, Jeff Kotzen | Source: Boston Consulting Group (BCG) | Subjects: Finance, Management

A company’s culture is frequently at the heart of mismanaged planning, with management often rewarding the wrong behavior. Because financial incentives are still frequently tied to the achievement of short-term plans, employees can feel pressured to negotiate financial goals and to sandbag. Consequently, planning begins to feel like a bazaar instead of the organized, top-down process it should be. Employees may be motivated to reach … [ Read more ]

Content: Quotation | Authors: Alexander Roos, Fabrice Roghé, James Tucker, Marc Rodt, Sebastian Stange | Source: Boston Consulting Group (BCG) | Subjects: Culture, Management, Organizational Behavior

In 1998, BCG published its first Value Creators Report, which ranked the top corporations on the basis of the value they’d created over the previous five years and also attempted to draw out lessons from the winners. Since then, they have expanded their databases, refined their methodologies, and shared their perspectives annually. For the 20th report, they have now reassessed their cumulative experience and distilled … [ Read more ]

Content: Article | Authors: Alexander Roos, Ed Newman, Eric Olsen, Eric Wick, Gerry Hansell, Hady Farag, Jeff Kotzen | Source: Boston Consulting Group (BCG) | Subject: Strategy

We worry that in their headlong embrace of formal systems of risk management, many companies are pursuing a highly technical approach to risk management—characterized by complex financial models and elaborate, formal risk-management systems—in isolation from the day-to-day activities of the broader organization. The result is that risk management may exist as a formal function, but it is not really embedded in the “mindset” of the … [ Read more ]

Content: Article | Authors: Alexander Roos, James Tucker, Marc Rodt, Sebastian Stange, Ulrich Pidun | Source: Boston Consulting Group (BCG) | Subject: Risk Management

Since businesses face more aggressive competition than ever before and have to assume increasing risk, they need to prioritize their deployment of resources even more carefully and govern their wide-ranging global activities more diligently. Smart planning has never been as important as it is today.

In this Focus, we delve into the changes and challenges that have altered the context in which companies must now undertake … [ Read more ]

Content: Article | Authors: Alexander Roos, Fabrice Roghé, James Tucker, Marc Rodt, Sebastian Stange | Source: Boston Consulting Group (BCG) | Subject: Management

At most large companies, the performance management system is a hodgepodge of legacy systems. KPIs are not aligned across the organization. Different information systems categorize data differently. Decision rights as to who decides what data to collect are so distributed that there is no consistent approach to reporting across the entire company.

As a result, the finance organization spends an inordinate amount of time simply putting … [ Read more ]

Content: Article | Authors: Alexander Roos, James Tucker, Jeff Kotzen, Julien Ghesquieres, Marc Rodt, Tim Nolan | Source: Boston Consulting Group (BCG) | Subjects: Finance, Management

Joint ventures can be an effective way to enter new markets, gain expertise, increase production capabilities, and expand distribution. Given these potential benefits, it’s no wonder that these partnerships have regained popularity. But despite their advantages, they often fail to deliver value. BCG’s research into what it takes to succeed revealed eight important lessons.

Content: Article | Authors: Alex Dolya, Alexander Roos, Dinesh Khanna, Gaurav Nath, Nikolaus Lang, Sharad Verma, Tawfik Hammoud | Source: Boston Consulting Group (BCG) | Subjects: Management, Mergers & Acquisitions, Strategy

Contrary to popular belief, serial acquirers create less value on average than companies that rarely do M&A, according to a BCG analysis of more than 26,000 deals. But the top serial acquirers generate superior value by focusing on the right targets at the right time. Contributors: Jens Kengelbach, Dominic C. Klemmer, Dr. Bernhard Schwetzler, Dr. Marco O. Sperling, Alexander Roos.

Content: Article | Author: Alexander Roos | Source: Boston Consulting Group (BCG) | Subject: Mergers & Acquisitions

Many companies are concerned about their ability to generate the funds needed for growth. But there is one potentially powerful source of cash that is often overlooked: working capital. By fundamentally rethinking and streamlining key processes across the value chain, companies can achieve greater reductions in working capital—as much as 30 to 40 percent—and cost savings of 5 to 10 percent. This increase in working … [ Read more ]

Content: Article | Authors: Alexander Roos, Martin Wortler, Patrick Buchmann | Source: Boston Consulting Group (BCG) | Subject: Finance

Despite the mounting competition for M&A and size of deals, it is still possible to create substantial value from transactions by following some systematic rules. This report, based on one of the largest studies of M&A (over 4,000 completed deals), explai

Content: Article, Related Content | Authors: Alexander Roos, Jeff Gell, Jens Kengelbach, Kees Cools | Source: Boston Consulting Group (BCG) | Subject: Mergers & Acquisitions

Alliances have become an increasingly important part of corporate strategy. They can be extremely useful in situations of high uncertainty and for growth opportunities that a company either cannot or does not want to pursue on its own. But the advantages of shared risk are often offset by unclear governance and lack of genuine commitment. This report distills lessons about alliance strategy and management drawn … [ Read more ]

Content: Article | Authors: Alexander Roos, Kees Cools | Source: Boston Consulting Group (BCG) | Subject: Strategy

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Companies that are avoiding mergers and acquisitions in an economic slowdown may be missing a major strategic opportunity. According to this study by the Corporate Development practice of The Boston Consulting Group (BCG), mergers that take place during periods of below-average economic growth have a higher likelihood of success. And they generate considerably more shareholder value, on average, than deals taking place during periods of … [ Read more ]

Content: Article | Authors: Alexander Roos, Chris Neenan, Daniel Stelter, Jeffrey Kotzen | Source: Boston Consulting Group (BCG) | Subject: Best Practices