A Distillation

Abstract

The central proposition that runs through this book is that managers are employed to create shareholder value. This is their prime aim, their central focus in making the choice of emphasis from their individual list of priorities. They need to identify from their own area of influence those items that really do add value at the end of the process, and those that do not. The starting-point is that any non-value adding activities identified should be scrapped. This action should not be taken in isolation or without appropriate discussion to ensure that the full implications from the total business chain are taken into account. Managers will not win bouquets for creating problems elsewhere in the value chain by abandoning activities they can personally avoid, only to pass on problems elsewhere in the business. This is why a holistic approach is needed.