Strategic Cascading of RTSR Aspirations PPT

This PPT slide, part of the 28-slide Value Creation Framework Series: Primer PowerPoint presentation, outlines 2 critical decisions that leadership must make after establishing a Relative Total Shareholder Return (RTSR) aspiration. The first decision involves whether to de-average the overall RTSR target. This means assessing if different business units or product lines should have distinct targets based on their specific circumstances and potential. For example, if the overall RTSR target is set at 16%, a struggling unit might have a target of 12%, while a newly successful unit could be assigned a target of 20%. This decision is influenced by the company's cultural norms and management philosophy, indicating a need for alignment between strategic goals and operational realities.

The second decision focuses on determining the internal measures that will quantify each unit's contribution to the RTSR goal. A suggested approach is to utilize the Total Business Return (TBR) metric, which simplifies the evaluation by capturing both capital gains and dividend yields from each unit or product line. The TBR is calculated using growth in Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA), which serves as a key driver for assessing capital gains.

This framework emphasizes the importance of tailored targets and measurement systems that reflect the unique dynamics of different business segments. It encourages leaders to think critically about how to align aspirations with actionable metrics, ensuring that all parts of the organization are working towards a cohesive goal while recognizing their individual contributions.

This slide is part of the Value Creation Framework Series: Primer PowerPoint presentation.

Download the Full Presentation

EXPLORE MORE SLIDES FROM THIS PRESENTATION

EXPLORE MORE PRESENTATIONS ON

Shareholder Value Value Based Management Value Creation Dividend Yield Leadership

Are you familiar with Flevy? We are you shortcut to immediate value.

Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations

Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.

Flevy is the world's largest knowledge base of best practices.

Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.

Read Customer Testimonials

"As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."

– David Coloma, Consulting Area Manager at Cynertia Consulting

"[Flevy] produces some great work that has been/continues to be of immense help not only to myself, but as I seek to provide professional services to my clients, it gives me a large "tool box" of resources that are critical to provide them with the quality of service and outcomes they are expecting."

– Royston Knowles, Executive with 50+ Years of Board Level Experience

"If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"

– Debbi Saffo, President at The NiKhar Group

"As a young consulting firm, requests for input from clients vary and it's sometimes impossible to provide expert solutions across a broad spectrum of requirements. That was before I discovered Flevy.com.

Through subscription to this invaluable site of a plethora of topics that are key and crucial to consulting, I

... [read more]

– Nishi Singh, Strategist and MD at NSP Consultants

"As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor

... [read more]

– Michael Duff, Managing Director at Change Strategy (UK)

"I have used FlevyPro for several business applications. It is a great complement to working with expensive consultants. The quality and effectiveness of the tools are of the highest standards."

– Moritz Bernhoerster, Global Sourcing Director at Fortune 500

"As a consulting firm, we had been creating subject matter training materials for our people and found the excellent materials on Flevy, which saved us 100's of hours of re-creating what already exists on the Flevy materials we purchased."

– Michael Evans, Managing Director at Newport LLC

"Flevy.com has proven to be an invaluable resource library to our Independent Management Consultancy, supporting and enabling us to better serve our enterprise clients.

The value derived from our [FlevyPro] subscription in terms of the business it has helped to gain far exceeds the investment made, making a subscription a no-brainer for any growing consultancy – or in-house strategy team."

– Dean Carlton, Chief Transformation Officer, Global Village Transformations Pty Ltd.