This PPT slide, part of the 101-slide Complete Guide to Value Creation PowerPoint presentation, outlines the necessity for organizations to refine their corporate center practices to seize untapped opportunities for value creation. It emphasizes the alignment of leadership styles with corporate practices, specifically under two distinct approaches: the Hands-off Investor and the Hands-on Owner. Each style requires tailored metrics and processes to optimize performance.

For the Hands-off Investor, a singular metric such as EVA or TBR is crucial. This approach advocates for a robust long-term planning process and suggests that larger annual bonuses are more fitting for this style. It implies a focus on high-level oversight rather than day-to-day management.

Conversely, the Hands-on Owner style demands multiple performance metrics, including margin and revenue growth. This method limits the autonomy of business units, ensuring tighter control over operations. The slide notes the importance of a constrained annual budget process to maintain this oversight.

The slide also details the steps a project team should undertake to align practices with organizational goals. This includes analyzing the headquarters' potential for value creation, establishing a capabilities and culture fact base, and mapping these against management’s agenda for four direct value creation levers. Gathering objective data and soliciting feedback across the business is highlighted as essential for this alignment.

Overall, the content suggests that organizations must be proactive in adjusting their practices to align with leadership styles and market changes. This alignment is critical for maximizing value creation opportunities and ensuring that corporate strategies are effectively executed.

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