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Value Leadership: The 7 Principles that Drive Corporate Value in Any Economy

Value Leadership: The 7 Principles that Drive Corporate Value in Any Economy

Peter S. Cohan

ISBN: 978-0-787-96604-1 October 2003 Jossey-Bass 320 Pages


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In Value Leadership, renowned management and investment expert Peter Cohan — whose 2002 stock picks gained 81percent when the S&P 500 plunged 24 percent— provides a new and powerful concept of sustainable corporate value. Using his expertise in understanding shareholder value, Cohan offers executives seven management principles that were tested in periods of economic expansion and contraction. These principles are: valuing human relationships, fostering teamwork, experimenting frugally, fulfilling your commitments, fighting complacency, winning through multiple means, and giving to your community. Cohan illustrates these principles by drawing on examples from eight Value Leaders— Synopsys, WalMart, Goldman Sachs, MBNA, Johnson & Johnson, J. M. Smucker, Southwest Airlines, and Microsoft. Through two recessions, these companies grew 35 percent faster, were 109 percent more profitable, and generated five times more shareholder wealth than their peers.

Introduction: What Is Value Leadership? 1

1 Where Do You Stand? (Start with the Value Quotient) 25

2 People Matter (Value Human Relationships) 53

3 Two Heads Are Better Than One (Foster Teamwork) 81

4 Growth Matters (Experiment Frugally) 107

5 Trust Is Vital (Fulfill Your Commitments) 137

6 Success Can Breed Failure (Fight Complacency) 165

7 Profit Is Vital (Win Through Multiple Means) 189

8 Doing Good Matters (Give to Your Community) 221

9 Actions Speak Louder Than Words (Instill Value Leadership in Executives, Investors, and

Policymakers) 253

Appendix: Selection and Value Quotient Analysis of Value Leaders 275

Notes 291

Acknowledgments 302

The Author 304

Index 307

""Value Leadership is unusually well-constructed and perceptive, and its precepts seem eminently sensible for companies aiming for long-term."" (Financial Executive)