The Blue Line Imperative is compelling, fun and provocative. It is a must–read!"
W. Chan Kim, bestselling author of Blue Ocean Strategy, The BCG Chair Professor of INSEAD and the Co–director of the INSEAD Blue Ocean Strategy Institute
Today′s business leaders need to monitor the sources of their company′s value and understand the trends and changes that affect it. When superficial indicators of corporate value are allowed to obscure the actual value of the enterprise, the results can be disastrous, as recent history has far too often shown. True value the "blue line" is not easy to see, but it is the only proper aim of any organization wishing to sustain success and growth into the future.
In The Blue Line Imperative, INSEAD professors Kevin Kaiser and S. David Young teach us how to sustainably grow any organization by uncovering the real drivers to value. They provide important lessons and cautionary tales including sources ranging from Daimler–Benz to the movie Die Hard II, Kaiser and Young demonstrate how to sustain competitive advantage over the long haul by focusing on value and creating a culture to support it. Every decision a company makes either creates value or destroys it. The Blue Line Imperative demonstrates with powerful clarity why the goal of any value–driven enterprise is to raise the blue line as high as possible, and shows us how to achieve it.
Chapter 1 What is Value? 1
Chapter 2 The Global Capital Markets 23
Chapter 3 The Opportunity Cost of Capital 45
Chapter 4 The Expected Future Free Cash Flows 71
Chapter 5 Blue–line Management 93
Chapter 6 Shifting to Blue 115
Chapter 7 The Hazard of Growth 135
Chapter 8 Creating a Blue–line Culture 159
Chapter 9 Trust and Hierarchy in Blue–line Management 195
Chapter 10 Value and Decision Making 219
Chapter 11 Getting Net Present Value Right 233
Chapter 12 Becoming a Blue–line Manager 269
Appendix Blue–line Questions 289