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The article introduces the authors’ “ Imagination Premium™” metric which assesses the confidence of the investing community in a business’ growth strategy.

The article explains how the Imagination Premium is calculated and applies it to several cases--Amazon, Tesla and Buffalo Wild Wings.

Amazon’s implied value of growth was nearly four times its value from operations, a result completely consistent with its “profits are optional” motto. Amazon is a prototypical example of a company that is built to thrive in the ‘transient advantage economy.

Sky-high expectations for growth can be dashed by external events over which businesses have little control as Tesla found out. Unless a business can show, as Amazon has historically done, that it can turn expectations into gold-spun reality, lofty investor expectations can become a liability.

By applying the Imagination Premium concept to successful and problematic cases the authors illustrate the risks and advantages of a bold growth-before-profits strategy.

The authors offer a new metric for assessing a company's potential for growth that CEO's and leadership teams can actively manage.

The Imagination Premium metric reflects the value of a company's equity, beyond what can be readily explained by its ability to throw off cash.

For a CEO, TIP provides support for an argument that investments in future growth are well warranted.

A negative TIP signals that investors will not even pay for the capitalized value of current cash flow and this usually leads to activist investors, hostile acquisition threats and C-suite turnover.

The article shows executives how to drive the premium investors will pay for corporate growth initiatives. One of the first things strategists can do to manage their company's TIP is a portfolio analysis that looks at how uncertain each current investment is, and whether the whole portfolio is one growth investors will reward with an increased TIP.

The purpose of the paper is to emphasize the performance benefits of a long-term innovation and value creation perspective. This paper responds to the recent concept of the imagination premium method for valuing companies. It offers four key takeaways to create a long-term innovation-focused orientation for future value creation.

The research is based on both consulting experience and insight from several studies of executives that were supported by the U.S. Conference Board.

The research differentiates how high versus low innovators create long-term perspectives and value. High innovators have explicit processes that support innovation, leadership that focuses on long-term performance, resources committed to long-term projects and innovation and knowledge management systems that transfer knowledge throughout the organization.

The research offers strategic directives aimed at creating long-term value but acknowledges that there are other means to accomplish such objectives.

This paper offers strategies for executives to create an innovation-focused organizational culture that drives lasting long-term value.

Focusing on long-term innovation prioritizes larger social, environmental and business objectives over superficial short-term stock price changes, leading to greater value-creation.

This paper advocates that leadership play the long game and adopt a longer-term view of innovation due to its long-term competitive, employee engagement, sustainability and performance benefits.

Provides lessons in strategic agility from the presentations of two Drucker Forum thought leaders at the annual conference in Vienna in November.

Summarizes the Drucker Forum conference presentations of Steve Blank, a Silicon Valley serial-entrepreneur, and Professor Carlota Pérez.

Blank warns that, “Companies and government organizations are discovering that innovation activities without a defined innovation pipeline are likely to result in innovation theater.” 10; 10;Pérez believes the world has an historic opportunity to turn our environmental problems into economic solutions.

Pérez warns “Business is trapped in the illusion that a minimal state is always best.”

Steve Denning highlights paradigm shifting lessons that Blank and Pérez have to offer managers.

The reality of organizing new growth ventures is that every place to locate them in the organization has pros and cons.

Using a set of seven archetypes, executives can figure out which location solution fits the initiative and the parent company best.

Organizations pursuing ventures have a choice of how much separation/distance to insert between ongoing operations and the new business.

The “right” place to locate a venture also depends on such factors as the situation of the parent organization, the level of innovation maturity the parent organization has and the form and functions of the venture.

One of the most critical decisions that executives need to make as they contemplate getting started with setting up an innovation/growth function within their organizations is where, organizationally, it belongs. Seven alternatives are analyzed.

A case study is given of International Distillers & Vintners (UK) Limited (IDV (UK)) and an assessment made of the viability of translating theory into practice in the real world – the importance of having a strategy, of strategic planning, and having a success factor as a key component of an organisation′s competitive advantage. Following the appointment of a new managing director at IDV (UK) in 1982, three goals were established: (1) to more than double profits within five years; (2) to increase return on capital employed by almost 50 per cent within five years; and (3) to be the outstanding wine and spirit company in the UK. A sound strategy was required to achieve these goals. The historic background of the organisation is given and the strategic position of IDV (UK) in relation to its competitors and market share is described. A review of the state of the market is given and possible areas for expansion discussed. The quality and pedigree of certain brands and the quality and strength of leadership are proposed as the success factors upon which IDV (UK) could build. Details are given of how the organisation built upon these factors to achieve strategic success; the lessons learned; and the level of achievement and success in the marketplace.