From Mediocrity to Excellence: How to achieve premium company valuation

Introduction

Businesses today seek the perfect way to prosper and outperform competition. Leadership is being called upon to create a premium company valuation: this is the ultimate goal for any executive. Their vision must provide a sense of purpose to the organization, and set the right yet attainable objectives. Behind every successful organization, there are competent leaders who are able to make their vision a reality and motivate those around them.

The Value Imperative

    
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    The Value Imperative   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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The Value Imperative

Valuation is the dominant force that drives the company strategic intent; and if premium valuation is the sine qua non of business success, then its elusiveness should be no surprise. Well-managed companies will always have a series of measures prepared to deal with the most immediate problems. Businesses that consistently deliver valuation growth follow clear operational principles and management disciplines and try to hedge their bets against the vicissitudes of a sometimes unpredictable business world; they minimize risk by never putting all their eggs in one basket. Steady, well performing companies have multi front strategies that keep them moving forward as a whole even when some of the initiatives failed. The following Six Principlesª will drive growth and profitability to create premium valuation.

The six proven principlesª include:

    
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The six proven principles include

  • Spread the risk. Never depend on just one initiative; you need to create a portfolio of many initiatives. In short, diversify, diversify, diversify …
  • Take small bites. Don’t let your quest for premium valuation become an unmanageable challenge. Set up smaller valuation objectives in several areas, and then outgrow them.
  • Balance the strategies. Short and long-term driven growth can have different strengths and weaknesses. Decide which strategy works best for you.
  • Commit to superior value propositions. Nothing spurs value creation faster than superior value propositions , including disruptive technologies and customer-driven organizations
  • Expand valuation growth capabilities. To grow at faster rates, we must focus on an efficient utilization of the existing resource pool; rather than focus on market demands.
  • Manage value growth. There is a need to establish a distinct system for managing a growth portfolio through varied market conditions. This system should coordinate and comprise a multitude of aspects, including attitudes, behavior, information, review processes, roles and responsibilities.

k•d•m semi consulting has a proven track record to define, deploy, implement and execute these principles together with leading technology companies. The ultimate goal was to create premium valuation with focus on double-digit revenue growth and product portfolio optimization. The six principles may not cause success overnight, but they guarantee sustainable long-term business success.

Diagnostics form a major part of k•d•m’s business philosophy. We believe that an in-depth examination of existing processes can unlock previously unseen opportunities. k•d•m’s software solution Shibui-IT™ can make your business more profitable without breaking the bank. With customized reports and analyses, Shibui-IT™ helps executives and investors make the right decision at all times.

As an ambassador for Knowledge-Driven organization models, k•d•m offers advisory support to improve business habits, and to help transform a product-driven organization into a customer – driven one.

If you would like to read more on how k•d•m and its team of industry-leading professionals can transform your business, I invite to you visit our website at www.kdmsemiconsulting.com .

With kind regards,

Klaus D Mueller, CEO & Founder

Sources:
ª Books:
The Discipline of Market Leaders: Choose Your Customers, Narrow Your Focus, Dominate Your Market - 20 Dec 1996 by Michael Treacy, Fred Wiersema
Double-Digit Growth: How Great Companies Achieve It--No Matter What – 1 Aug 2003 by Michael Treacy