Too often you will see shareholder value as short-term stock price hikes. We all know where it leads, we’ve read the news about companies crashing. Some shareholders get rich, some not. And what about the staff? When company breaks apart because it was chasing short-term profits and ignored the longer time frames, what happens to the livelihoods of people who were working there?
The real shareholder value comes from six things: short-term tactics (balance), long-term strategy (growth), asset use (earnings), cash flow (freedom), robustness (stability), and resilience (change). If one is missing, somebody will get hurt.