Want FREE Templates on Organization, Change, & Culture? Download our FREE compilation of 50+ slides. This is an exclusive promotion being run on LinkedIn.


We have assembled 23 documents in the Total Shareholder Value Toolkit. There are 20 documents listed on this page.
Take a look at the Top 100 Best Practices in Strategy & Transformation of 2024. It covers all levels of Strategy (Corporate, Business, Product, Marketing); Planning and Execution; Transformation; and Innovation.

  Open all 20 documents in separate browser tabs.
  Add all 20 documents to your shopping cart.

In the words of Warren Buffett, arguably the most successful investor of our times— "Price is what you pay, value is what you get." Simply put, from a C-Level executive perspective, this means continuously working to enhance Total Shareholder Value (TSV). While market fluctuations may temporarily influence a company's stock price, sustainable growth in TSV eventually dictates the long-term performance of an organization and reflects on its strategic success.

Total Shareholder Value: Overview, Purpose, and Impact

Total Shareholder Value is the summation of dividends and capital appreciation delivered by a firm to its stakeholders. It includes returns gained via consistent dividends, share buybacks, and any increase in the stock price. A mission every C-Level executive strives for—delivering meaningful and persistent growth in Total Shareholder Value—ultimately serves as the hallmark for corporate success.

The purpose of assessing TSV is to ensure that a company's strategic decisions ultimately translate into financial wellbeing, thereby driving investor confidence. A hike in Total Shareholder Value signals to the current as well as prospective shareholders that the organization is profitable and is likely to continue on the same trajectory. This instills faith in the minds of investors and can draw more investment to the organization, creating a positive snowball effect.

Strategic Tools to Drive Total Shareholder Value

1. Strategic Planning:

Strategic Planning plays a vital role in mapping the trajectory of Total Shareholder Value growth. A comprehensive strategy includes expanding market share, identifying opportunities for diversification, tightening the cost structure, and leveraging technology to enhance productivity and revenue.

2. Performance Management:

Performance Management, rightly used, can be a potent driver for the growth of Total Shareholder Value. It ensures that the strategy taken up by the executive team translates seamlessly into reality. By setting appropriate key performance indicators that align with TSV-centric goals, organizations can deliver sustained growth.

3. Risk Management:

Risk Management is one aspect that often gets sidelined in the pursuit of aggressive growth strategies. However, when adequately factored in, effective risk management can greatly contribute to the protection and the growth of Total Shareholder Value. It helps prevent calamitous incidents that can wipe out a significant portion of the shareholder value.

4. Operational Excellence:

Operational Excellence, which refers to the ongoing efforts to achieve sustainable improvement in an organization, is a significant driver of Total Shareholder Value. It involves enhancing processes, implementing innovations, reducing waste, and focusing on quality management.

5. Digital Transformation:

Digital Transformation has become a crucial aspect of the modern economy. By implementing digital technologies and strategies, companies can streamline operations, reduce costs, analyze customer behavior, enhance product/service offerings, and thus, contribute to the growth of Total Shareholder Value.

Establishing a Culture of Total Shareholder Value

Leaks in the value chain often go unnoticed. A vigilant eye from the leadership can drive a culture that prioritizes the creation and protection of Total Shareholder Value. It's not enough to merely employ the tools; creating an organizational culture that respects and promotes the growth of Total Shareholder Value can make all the difference.

Encouraging open dialogue, reinforcing the practice of keeping TSV in perspective during decision making, incentivizing the achievement of TSV-related goals are some ways to foster such a culture.

Driving Total Shareholder Value is a strategic imperative for any CEO or CFO in any industry. It requires relentless focus, strategic foresight, and excellent execution capabilities. Besides having a robust strategy, it's equally important to create a culture that respects and fosters value creation. It is these insightful measures that will differentiate a truly successful organization from the pack and ultimately deliver sustained Total Shareholder Value to its shareholders.

For more information, have a look at these management topics:


Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes across the world—in over 130 countries. Below is just a very small sample of our customer base.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Browse our Business Toolkits
to quickly find the documents you need.
Each business toolkit is a collection of documents around a common management topic.


  Show all available toolkits.

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.