“Option Games”: Filling the Hole in the Valuation Toolkit for Strategic Investment

The paper describes how strategic decisions can benefit from analysis using techniques drawn from both real options and game theory. It explains the trade-off between flexibility and strategic commitment and offers a toolkit for making choices in competitive markets.

Aaron De Smet

Processes are extremely important, which is: How does it work? What are the activities that, when you string them together in a particular way, add value? And what are the decisions that are made along that chain of activities? Who makes them? How do they get measured? This is one of the most important things.

When we develop metrics for an organization and set targets and … [ Read more ]

Aaron De Smet

A lot of people, when they think of how they design the organization, immediately gravitate toward the management hierarchy—the lines and boxes. But that’s just one small element of how you set up the organization. Structure also includes governance and how you set up which committees can approve things and make which decisions and which authorities get delegated and what is contained in a role … [ Read more ]

Aaron De Smet

Agility is the ability of an organization to renew itself, adapt, change quickly, and succeed in a rapidly changing, ambiguous, turbulent environment. Agility is not incompatible with stability—quite the contrary. Agility requires stability for most companies.

Agility needs two things. One is a dynamic capability, the ability to move fast—speed, nimbleness, responsiveness. And agility requires stability, a stable foundation—a platform, if you will—of things that don’t … [ Read more ]

Looking For Growth In All The Right Places

What are the sources of corporate growth? If you take a middle-of-the- road view of markets, as many executives do, the answers may surprise you: averaging out the different growth rates in an industry’s segments and sub-segments can produce a misleading view of its growth prospects.

Most so-called growth industries include sub-industries or segments that are not growing at all, while relatively mature industries often have … [ Read more ]


MBA2U is a non-profit organization of alumni from top MBA schools in the United States and Europe. It is sponsored by Belgacom and McKinsey & Company Belgium. The mission of MBA2U is to increase the number of young Belgian professionals going for a top MBA program in the United States and in Europe, by providing targeted information to potential candidates.

A Performance Index for B2B Marketplaces

Where does B2B go from here? McKinsey & Company teamed recently with Stanford University Business School’s Center for Electronic Business and Commerce to collect and analyze operational information from 60 independent B2B platforms across the US and Europe. The team’s goal was to create a performance index for B2B companies based on their ability to acquire customers, penetrate customer spending, and monetize the business opportunities … [ Read more ]

War For Talent II: Seven Ways to Win

McKinsey & Co. surveyed 6,900 senior executives and young managers from 56 companies to figure out the secret to winning the battle for great people. Here is an excerpt from the report on the seven “talent imperatives” that are essential for winning the war for talent. The seven:
1. Instill a talent mindset at all levels of the organization — beginning … [ Read more ]

McKinsey Quarterly

an online library of brilliant essays from one of the pre-eminent consulting firms in a host of specific industry areas, as well as broad strategic subjects and new areas like strategy, organization and marketing.