Optimal Use of Capital and Applying Knowledge
Your Board needs an assurance that their next capital injection is going to be applied optimally. They need to know that the next dollar is going to the highest and best use. This requires more than an assurance that you have applied normal analytical processes to the allocation decision. In a post-Blackberry world, the Board also needs an assurance that key Executives and Employees are completely on board, and that the plan is going to fit tightly with the real values of the executives and the company.
Getting the right combination of profitability and a stable source of ongoing business is one thing. It needs to be linked to a genuine ability to provide something that is truly outstanding in your chosen geographical base and segments. Will people in the company really care about this plan? Will they put their hearts into it? We agree with Jim Collins that a plan has to be based on disciplined implementation. This can never happen sustainably without buy-in throughout the company.
We have developed tools to help your own people with implementation.