Business is about capital. Leaders compete on the field of capital allocation. Finance allows them to determine appropriate metrics, define value aspirations, and then design and implement strategies to maximize the deployment of resources. Every company wants to create strong and sustainable value for its owners. That requires making intelligent trade-offs — between pursuing growth and focusing on margins, between reinvestment and profit sharing, and in how to allocate capital and other resources across the business.

Do you have a competitive advantage?

Check the following financial metrics against your industry or sector to see whether or not you have a competitive advantage.

  • High Margins
  • Low R&D Costs
  • Consistent Profits
  • Accumulation of cash
  • Inventory rising with revenue
  • Low to No Debt
  • Retained Earnings Growth
  • Book Value (Equity) Growth

Leaders must answer critical questions:

  • How will changes in technology, regulation, and geopolitics affect their business in terms of economics, customer priorities, competitive advantage, and where to best allocate capital.
  • Where, and with which business models, do we have the greatest opportunity to create above average results in the future?
  • Are our core functions able to sustain superior performance into the future and where can they be improved?