The ultimate leadership challenge: a unique corporate theory of value-creating growth

Abstract

Purpose

The article identifies the need for an approach beyond merely maintaining competitive advantage. In the eyes of analysts, maintaining the profitable status quo is not an option for creating shareholder value.

Design/methodology/approach

This masterclass develops the thesis that a strategist needs a corporate theory of value creation, something that provides ongoing guidance to the selection of positions and a vast array of strategic actions.

Findings

Even those who take a dim view of maximizing shareholder value would likely agree that from an enlightened stakeholder perspective management must find new, unexpected ways to grow the firm to be viable in the long term.”

Practical implications

A well-developed corporate theory enables fruitful thought experiments such as, “If my theory accurately describes my world, then when I select this strategic choice, the following will occur.””

Originality/value

The corporate theory of value structures the logic practitioners can use, repeatedly and consistently, to assess an enormous array of possible combinations of resources and activities. The logic enables strategists to define what is special about the options that are likely to create value.

Citation

Osiyevskyy, O. (2016), "The ultimate leadership challenge: a unique corporate theory of value-creating growth", Strategy & Leadership, Vol. 44 No. 5, pp. 47-50. https://doi.org/10.1108/SL-07-2016-0063