Optimizing Shareholder Value
Optimizing the value while balancing the often-complex objectives of the owners and preparing the business for sale.
Level 1 Demonstrates introductory understanding, directing people to the appropriate source for further information.
BEHAVIORS
- Describes basic concepts of value from the viewpoint of the shareholder.
- Describes basic valuation techniques.
- Identifies the basic drivers of value growth.
- Maintains various business scenarios and traces the impact on business valuation.
QUESTIONS
- Tell me about a time you communicated the value of an organization to others.
Probing Questions
* What was the situation?
* Who was the audience?
* What information did you communicate?
* How did you decide what information to share?
* What was the result?
- Tell me about a time when you assisted in the valuation of a business.
Probing Questions
* What was the background situation for the valuation?
* What was your role?
* What information did you collect? How did you conduct your research?
* How did your contribution help?
Level 2 Applies the competency in common situations that present limited difficulties, working with a moderate level of guidance.
BEHAVIORS
- Identifies the basic shareholder and stakeholder groups for the organization and their views on value.
- Designs business scenarios that could enhance value, based on direction from senior management.
- Describes the relationship of the organization’s key performance indicators and the causal effect of variations in those indicators.
- Identifies the difference between long term shareholder value and short term stakeholder gains.
QUESTIONS
- Describe a time you were involved in creating or maintaining a business scenario/model that tested value-creation hypotheses.
Probing Questions
* What was the scenario?
* How were you involved?
* What key information did you consider?
* Were you able to identify the primary value-creators?
- Can you tell me about a time you had to choose between long-term and short-term value creation objectives?
Probing Questions
* What was the circumstance?
* How did the long-term and short-term objectives conflict? How did they converge?
* What was your role?
* What did you decide? How did you arrive at your decision?
* What was the outcome?
Level 3 Applies the competency in the full range of typical situations, requiring guidance in only the most complex or new situations.
BEHAVIORS
- Differentiates between value to stakeholders and value to the shareholders.
- Designs business scenarios where short term value creation does not destroy long term value.
- Simulates realistic scenarios that create the optimal balance between short term and long term value.
- Presents scenarios to decision-makers and responds to inquiries and challenges.
QUESTIONS
- Tell me about a scenario you created to balance long-term versus short-term goals.
Probing Questions
* What was the scenario?
* How did the long-term and short-term goals conflict? How did they converge?
* How did you manage and evaluate the conflicts and convergences?
* What was the result?
- Describe a time when you presented a value creation scenario to management.
Probing Questions
* What were the circumstances?
* Who was the audience?
* How did you respond to questions and challenges?
* How was your presentation received?
Level 4 Applies the competency in new or complex situations and advises others.
BEHAVIORS
- Manages change in organizational behavior to become more value-conscious.
- Transforms recommendations into actionable points to enhance value.
- Integrates value-enhancing strategies with business targets.
- Identifies the financial consequences of each action in the context of the regulatory and legislative environment.
- Describes possible value leakages and how to avoid them.
QUESTIONS
- Can you describe a time you implemented a recommendation designed to create value?
Probing Questions
* What was the recommendation?
* How did you go about implementing the recommendation?
* Did you encounter any challenges or obstacles?
* How did you manage those challenges or obstacles?
* Do you think the implementation was effective in creating the value expected?
- Tell me about a time you evaluated a proposed value-enhancing scenario against constraints?
Probing Questions
* What was the situation?
* How did you decide what criteria needed to be examined?
* How did you formulate your conclusions?
* What was the result?
Level 5 Develops new approaches and methods in the area. Is recognized as an expert within the organization.
BEHAVIORS
- Sets priorities between short term and long term value-enhancing measures.
- Maintains integrity and ensures a balanced commitment to all stakeholders.
- Demonstrates ethical behavior in dealing with all stakeholders and shareholders.
- Oversees the implementation of value-enhancing measures.
- Manages the balance between business targets and value-centric strategies.
QUESTIONS
- Tell me about a time you demonstrated ethical behavior in dealing with stakeholders.
Probing Questions
* What was the situation?
* How did you determine what behavior was appropriate?
* How did you demonstrate that behavior?
* Do you think you were effective in setting a tone of ethical behavior? Why or why not?
- Describe a time you implemented new value-enhancing measures.
Probing Questions
* What was the circumstance?
* Why did you implement these measures?
* How did you determine which measures were appropriate?
* What was the result?