{"id":176,"date":"2020-02-13T11:43:46","date_gmt":"2020-02-13T11:43:46","guid":{"rendered":"http:\/\/enlightblog.com\/?p=176"},"modified":"2020-05-12T12:48:11","modified_gmt":"2020-05-12T12:48:11","slug":"does-your-management-team-have-the-tenacity-to-get-the-job-done","status":"publish","type":"post","link":"https:\/\/enlightadvisors.com\/blog\/2020\/02\/13\/does-your-management-team-have-the-tenacity-to-get-the-job-done\/","title":{"rendered":"Does Your Management Team Have The Tenacity To Get The Job Done?"},"content":{"rendered":"

\"Amelia-Earhart-quotes-The-most-difficult-thing-is-the-decision-to-act-the-rest-is-merely-tenacity\"<\/p>\n

In our last post about the Value Creation Vector, we dug into the second lever, Growth Potential<\/a>. \u00a0Today we\u2019re going to look at the third lever: Management Tenacity. Sadly, this lever is typically least interesting to management, even though it\u2019s often the easiest way to generate value.<\/p>\n

\"TenacityDefinition\"<\/p>\n

You may wonder why Management Tenacity is an easy way to generate value.\u00a0 The best I can tell you is that Management Tenacity captures how effectively and consistently your company and leadership do all the things they know they should do to be effective. \u00a0It\u2019s the business equivalent of diet and exercise. And, just like many of us eschew diet and exercise guidelines in favor of a magic pill to heal what ails us, many execs distract themselves with silver bullets – acquisitions, expansions, etc. – instead of rolling up their sleeves and getting to work.<\/p>\n

As a refresher, here\u2019s what I wrote about Management Tenacity in the original Value Creation Vector post<\/a>:<\/p>\n

It\u2019s safe to say no one has ever hired us to improve management tenacity. \u00a0And, that\u2019s a crying shame. This is where the low-hanging fruit abounds. Always. \u00a0A few small tweaks to how the management team works have lasting impacts on financial performance, longevity and morale \u2013 all with little or no financial risk.<\/p>\n

When we assess a company\u2019s management tenacity, we evaluate several factors that create Near-Term Value, Position the Company for Long-Term Value and Unlock Hidden Value.<\/p>\n

\"VCVMatrix-ManagementTenacity-New\"<\/p>\n

Create Near-Term Value<\/h2>\n

As with the other two factors, we start by assessing Management Tenacity factors that can have a near-term impact on your company\u2019s performance. \u00a0The basic tenant remains true: small changes in these factors can have significant and immediate impacts on corporate performance.<\/p>\n

The factors we consider are:<\/p>\n

1. Financial Management<\/strong> – Does the management team monitor the right metrics to guide day-to-day decision making?\u00a0\u00a0We want to understand if the management team considers:<\/p>\n