Monday, 28 May 2007

Value creation vs. valuation

Went on reading this evening. The word value still in my head...

Is web2.0 soon going to see a difference between real value and hyped valuation? See what Peter Rip has to say about that (not valuation, but what seems to be coming the web2.0's way). I truly don't know. I surely see some signs of the same things we saw before the bubble burst in 2001, but people keep saying this time it is different.

The really sad thing would be that if the bubble burst (somehow), good and bad will go down together. The bigger the tsunami, the worse the damage. Of course, some always prevail, but it does not mean that they will have been the better ones.

Probably, everyone would be better off at the end if we did not have to go through these hype- and roller coaster rides (Of course, the ones that hit the jackpot might not agree, but that is normal) in the public markets. Greed seems to blind collectively.

At the end, however, some value is always left behind to be collected. Fortunately so. And web3.0 might be born out of that.

The only problem, I guess, is that in the process we might lose one or more free services that we got used to. Shame.

Value-based management and culture

Value-based management provides a precise, unambiguous metric that organizations can use to make decisions at every level. The thinking is simple: discounted future cash flows determine the value of companies, which create that value only when they invest capital at returns exceeding its cost.

Beautifully simple ...

This quote is from the pitch for McKinsey's Tim Koller archive article: What is value-based management? (which is based on a chapter from the second edition of Valuation: Measuring and Managing the Value of Companies). It appeared in the second quarter 2007 edition of McKinsey Classics.

Interesting: it argues that all value-based managers should focus on changing the corporate culture, not the methodology.

This stuff is old and yet. It seems that culture is a hard nut to crack... and there is no formula for that, at least none that I know of.

As far as I can see, this classic article will still be of actuality in 10 years, and longer.

Tuesday, 22 May 2007

Blogosphere - Getting started?

For a while I have been reading blogs and comments by others. Now I want to try and get into it myself. See what comes out of it.