Strategy and Value

PRAISE FOR STRATEGY AND VALUE “There’s more data and more noise than ever, and it’s easy to lose sight of the fundamentals. Strategy and Value cuts through it and grounds leaders in what builds durable value over the long term.” —ED BASTIAN, CEO, Delta Air Lines “Strategy and value are often treated separately, yet effective executives and investors know they are inseparable. With vivid stories and grounded data, Strategy and Value shows how the two work together and why that connection matters. It is a must-read for anyone seeking to create sustainable, long-term value.” —MICHAEL MAUBOUSSIN, Head of Consilient Research for Counterpoint Global, Morgan Stanley “At a time when leaders have more tools and analysis than ever, Strategy and Value provides a practical framework and a powerful reminder that smart choices, disciplined execution, and a long-term orientation drive superior performance and enduring benefits for all stakeholders.” —MICHAEL FISHER, former CEO, Cincinnati Children’s Hospital Medical Center “The most enduring companies are built with purpose and sustained with discipline over decades. Strategy and Value gives leaders rigorous foundations for creating value that lasts.” —ALEX GORSKY, former Chairman and CEO, Johnson & Johnson For 30 years, McKinsey's Valuation has taught leaders how to measure value. This book shows how to create it. Strategy & Value: The Four Foundations That Drive Long-Term Performance is the executive's companion to Valuation. It’s a guide to the strategic decisions that promote exceptional, lasting value creation—from the firm that has advised more CEOs on strategy than any other. Strategy should be getting better. Leaders have never had more frameworks, tools, and data to work with. Yet only one in five executives say their strategies would pass a rigorous test of quality, a 40 percent decline over 15 years. Meanwhile, the gap between economic profit winners and losers has been widening. Why do some companies succeed while others lag behind? The winners focus on fundamentals that don’t change even when everything else does. This book distills those fundamentals into four foundations and shows how grounding strategy in them unlocks the bold, distinctive choices that build long-term value, even as artificial intelligence and geopolitics shake the business world. In this book, you’ll learn: Why most strategies fail the value test—and how to know whether yours will How to have the debates that matter: which businesses to own, what to acquire, what to divest, when to return cash How to lead through uncertainty—including how to apply timeless principles of value to AI How to make strategy an institutional discipline, not an annual event Written for executives, board directors, founders, and investors, Strategy & Value is the book to read before your next big strategic decision—and to put in the hands of every leader coming up behind you. When everything changes, the fundamentals don't.