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Research & Publications

Because the Center for Strategy, Execution and Valuation strives to be a platform for leaders from government, business and the community to come together to create and pioneer best practices, we offer a deep reservoir of business research.

From our Creating Shared Value Lab to our Strategic Risk Management Lab or our catalog of Return Driven Strategy Case Studies and carefully crafted library of strategy-focused books and articles, the center is a gateway to a vast amount of shared knowledge for the conscientious strategist. You can find a wealth of information in this section.

Books and Articles

DRIVEN: Business Strategy, Human Actions, and the Creation of Wealth
Available on Amazon

STRATEGIC RISK MANAGEMENT: A Primer for Directors and Management Teams 
Career Driven Strategy (In Press)

Frigo, Mark L. and Richard J. Anderson, "Strategic Risk Assessment" Strategic Finance, January 2010

Click here to view the cover article

Frigo, M. and J. Litman, "Give My Regrets to Wall Street" Harvard Business Review ( February 2004)

Check the following link for other articles written by Professors Frigo and Litman at:http://www.strategicfinancemag.com

Additional articles:

Frigo, Mark L. and Venkat Ramaswamy, "Co-Creating Strategic Risk-Return Management" Strategic Finance, May 2009 (cover article)

Click here to view the cover article in Strategic Finance

Frigo, Mark L. and Richard J. Anderson, "Governance, Risk and Compliance (GRC): Implications and Advice for Internal Auditors" Internal Auditor, June 2009

Frigo, Mark L. and Richard J. Anderson, "Strategic GRC: 10 Steps to Implementation" Internal Auditor June 2009

Frigo, Mark L. and Richard J. Anderson, "Strategic Risk Assessment: A First Step for Risk Management and Governance" Strategic Finance December 2009

Frigo, Mark L. and Richard J. Anderson, "Is it Time to Consider a Risk Committee?" Strategic Finance August 2009

Frigo, Mark L. and Richard J. Anderson, "A Strategy Framework for Governance, Risk and Compliance" Strategic Finance, February 2009

Frigo, Mark L., Robert Paladino and Larry Cuy, "Missed Opportunities in Performance and Enterprise Risk Management" Journal of Corporate Accounting and Finance, March-April 2009

Frigo, Mark L., "Strategic Risk Management: The New Core Competency" Balanced Scorecard Report (Harvard Business Publishing) January-February 2009

Banergee, Bhabatosh, Needles, Belverd E. and Mark L. Frigo, "Corporate Governance in India: Issues and Practices of High Performance Companies" Indian Accounting Review June 2009 Vol. 13 No. 1

Barrows, Edwards and Mark L. Frigo, "Using the Strategy Map for Competitor Analysis" Balanced Scorecard Report (Harvard Business Publishing) July-August 2008

Beasley, Mark S. and Mark L. Frigo, "Strategic Risk Management: Creating and Protecting Value" Singapore Accountant, January-February 2008 (adapted by the Singapore Accountant from Strategic Finance)

Busco, Cristiano, Giovannoni, Elena, Riccaboni, Angelo, and Mark L. Frigo, "Linking Governance to Strategy: The Role of the Finance Organization" Singapore Accountant, March-April 2008 (adapted by the Singapore Accountant from Strategic Finance)

Frigo, Mark L., "Return Driven: Lessons from High Performance Companies" Strategic Finance, July 2008 (cover article)

Needles, Belverd E., Powers, Marian. and Mark L. Frigo., "Performance Measurement and Executive Compensation: Practices of High Performance Companies" Studies in Managerial and Financial Accounting. Vol. 18, 2008

Frigo, M., "When Strategy and ERM Meet" Strategic Finance, January 2008.

Needles, Belverd E., Marian Powers, Anton Shigaev and Mark L. Frigo, "Financial Characteristics of High-Performance Companies in India" Indian Accounting Review, (Vol. 11, No. 1 June 2007)

Busco, Cristiano, Elena Giovannoni, Angelo Riccaboni, Davide Franceschi and Mark L. Frigo, "Linking Governance to Strategy: The Role of the Finance Organization" Strategic Finance September 2007 (cover article)

Needles, Belverd E., Marian Powers, and Mark L. Frigo, "Performance Measurement and Executive Compensation: Practices of High Performance Companies," Studies in Financial and Managerial Accounting, (London: JAI Elsevier Science Ltd.), 18, 2008, forthcoming.

Beasley, M. and M. Frigo, "Strategic Risk Management: Protecting and Creating Value" Strategic Finance May 2007 (cover article)

Needles, B.E., M. Powers, A. Shigaev and M. Frigo, "Financial Characteristics of High-Performance Companies in India" Indian Accounting Review 2007

Busco, Frigo, Giovannoni, Riccaboni, and Scapens, "Integrating Global Organizations through Performance Measurement Systems: How Systems of Performance Management Helped GE and Nestlè Waters to achieve Cultural Alignment" Strategic Finance January 2006 (cover article)

Busco, Frigo, Giovannoni, Riccaboni and Scapens, "Towards, "Integrated Governance": The Role of Performance Measurement Systems" Studies in Managerial and Financial Accounting Volume 16, (2006)

Needles, B, Frigo, M. and M. Powers, "Strategy and Integrated Financial Ratio Performance Measures: Further Evidence of the Financial Performance Scorecard and High Performance Companies" Studies in Managerial and Financial Accounting Volume 16, (2006)

Busco, Frigo, Giovannoni, Riccaboni, and Scapens, "Integrating Global Organizations through Performance Measurement Systems: How Systems of Performance Management Helped GE and Nestlè Waters to achieve cultural alignment" Strategic Finance January 2006 (cover article)

Busco, Frigo, Giovannoni, Riccaboni and Scapens, "Towards, "Integrated Governance": The role of performance measurement systems" Studies in Managerial and Financial Accounting Volume 16, (2006)

Frigo, M, Needles, B and M. Powers, "Strategy and Integrated Financial Ratio Performance Measures: Further Evidence of the Financial Performance Scorecard and High Performance Companies" Studies in Managerial and Financial Accounting Volume 16, (2006)

Busco, Frigo, Giovannoni, Riccaboni, and Scapens, "Beyond Compliance: Why Integrated Governance Matters Today" Strategic Finance August 2005 (cover article)

Frigo, M, Needles, B and M. Powers, "Strategy and Integrated Financial Ratio Performance Measures: Empirical Evidence of the Financial Performance Scorecard and High Performance Companies" Studies in Managerial and Financial Accounting Volume 15, (2004)

Frigo, M. L, "Growth isn't always good: Knowing When and Where to Grow" Strategic Management (December 2004)

Frigo, M. L, "Strategy Anatomy: Examination, diagnosis and prescription: That's what it will take to make strategy and execution an ongoing process that reaps continual returns" Insight: The Magazine of the Illinois CPA Society (August 2004)

Frigo, M. and J. Litman, "When Strategy and Valuation Meet – Five lessons from Return Driven Strategy" Strategic Finance (August 2004)

Frigo, M.L, "Strategy and Execution: A Continual Process" Strategic Finance (April 2004)

Frigo, M. L, "The Value of Strategy Maps" Strategic Finance (March 2004)

Frigo, M. L, "Focusing Strategy on Fulfilling Customer Needs" Strategic Finance (January 2004)

Frigo, M. L, "The Segments, Offerings, Needs Matrix" Strategic Finance (December 2003)

Frigo, M. L, "Guidelines for Strategic Financial Analysis" Strategic Finance (November 2003)

Frigo, M. L, "Performance Measures that Drive the Goal Tenets of Strategy" Strategic Finance (October 2003)

Frigo, M. L, "Performance Measures that Drive the First Tenet of Business Strategy" Strategic Finance (September 2003)

Frigo, M. L, "Mission Driven Strategy" Strategic Finance (August 2003) ​

High Performance Company Research

Dr. Mark L. Frigo
Director, The Center for Strategy, Execution and Valuation

RESEARCH ON HIGH-PERFORMANCE COMPANIES

During the last three decades, there have been many attempts to study high performance companies. An article in Harvard Business Review (Kirby, Julia, "Toward a Theory of High Performance" Harvard Business Review, 2005) profiled some of these studies, including:

• Peters, Thomas J. and Robert H. Waterman, In Search of Excellence: Lessons from America's Best-Run Companies (1982)
• Kotter, John P. and James L. Heskett, Corporate Culture and Performance (1992) 
• Collins, James C. and Jerry I. Porras, Built to Last: Successful Habits of Visionary Companies (1994)
• Foster, Richard and Sarah Kaplan, Destruction: Why Companies That Are Built to Last Underperform the Market-and How to Successfully Transform Them (2001) 
• Zook, Chris and James Allen, Profit from the Core: Growth Strategies in an Era of Turbulence (2001)

Works have included:

• Kim, W. Chan and Renee Mauborgne, Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant (2005)
• Collins, James C. Good to Great: Why Some Companies Make the Leap and Others Don't, HarperBusiness (2001)
• Collins, Jim and Morten T. Hansen, Great By Choice: Uncertainty, Chaos and Luck – Why Some Thrive Despite Them All (2011)

Each of these works has made certain contributions. Yet the question and comment by Julia Kirby in Harvard Business Review guides future work and inquiry: "What does it mean to be a high-performance company? Twenty-three years after In Search of Excellence, we're still searching — and just maybe getting closer to answers." One of the intentions of our ongoing research on high performance companies and the book DRIVEN: Business Strategy, Human Actions and the Creation of Wealth, is to describe what it means to be a high-performance company in terms of performance metrics and the strategic activities and traits that led to sustained periods of exceptionally high performance in terms of return on investment, growth and wealth creation. For more information, seminars, keynote presentations and articles on high-performance company research, please visit www.markfrigo.com.

The research listed below is based on the Return Driven Strategy Initiative, which started with more than 15,000 public companies in North America, Europe and Asia. We examined the performance of these companies over the last 20 to 30 years using a three-part lens of economic performance.

Identify companies with superior performance meeting the following stringent criteria:

1. Cash Flow Return on Investment had to exceed twice the cost of capital consistently for over 10 years straight (Rate of Return on Equity was used for financial services companies).
2. Growth rates must exceed the GDP growth rate over the same period.
3. Total Shareholder Returns (TSR) had to exceed market performance over the time period — consistent with the growth and return levels.

The Return Driven Strategy Initiative identified companies that met the three criteria of sustained high performance. The first two criteria drive shareholder returns. First and foremost, high-performance companies must achieve superior and sustainable Return on Investment (ROI). Second, high performance companies must grow the business, but only if they can continue to achieve superior ROI (we refer to this as discipline growth). The third criteria (superior shareholder returns) will be driven by the first two criteria, assuming the company has adhered to the ethical parameters of its constituents and communities, which define the first tenet of Return Driven Strategy "Ethically Maximize Wealth."

What were the common patterns of activities of these high-performing companies? It took us and our research teams more than 10 years to come up with the answers: 11 tenets of business strategy and three foundations that describe the pathway to sustainable high performance and shareholder wealth creation.

The next step in the research was to study the characteristics and traits of these companies during the period of high performance. We and our research teams reviewed hundreds of articles, books, case studies and annual reports covering each company; conducted intensive financial analyses for each company; conducted interviews with managers and leaders of the companies, conducted interviews with customers and suppliers of the companies; carefully analyzed compensation plans for the companies; and examined how the companies created wealth while adhering to the ethical parameters of their communities.

The findings are described in the book Driven: Business Strategy, Human Actions and the Creation of Wealth.

The Return Driven Strategy Initiative also looked at the "other side" of performance: mediocre companies, average performers, below average performers and companies that have become failed businesses. How did the characteristics and traits of these companies differ from those identified as high-performing companies? Here, we and our research teams studied these companies using the lens of the Return Driven Strategy framework.

What we found were distinct differences in the business activities of these companies compared with high-performing companies. Companies that did not achieve sustainable high performance and wealth creation seemed to fail to execute on many of the tenets of the Return Driven Strategy framework.

The research and analysis of the Return Driven Strategy Initiative spans over a decade using some of most powerful financial tools available with data encompassing over 15,000 companies globally, for as many as 50 years of data.

The ideas, tenets and strategies in the Return Driven Strategy framework have been tested and refined by executives, board members, employees, money managers, hedge funds and academicians in North America, Europe and Asia.

The research found that high-performing companies think and act differently than the rest. These companies have found ways to escape from the grind of commoditization and competition by focusing on customers, customer needs and markets (groups of customers). At the same time, they conscientiously developed unique capabilities and resources (which are called "Genuine Assets") that provide protection from competition and in some respects made competitors irrelevant.

It was found that there are no permanent high-performance companies. What the Return Driven Strategy Initiative identified were specific periods of high performance for a particular company and then studied the activities of that company preceding and during the time of high performance.

Every one of the companies that met the stringent criteria of the Return Driven Strategy Initiative faces the risk of fading. Some have already begun to fade somewhat. But the pathway to fading can be charted by observing how the tenets in the Return Driven Strategy framework were neglected. Similarly, the rise of these companies and the sustainability of high performance can be attributed to attention to these tenets. For companies with average or below-average performance levels, gaps in their business strategy can be revealed and addressed when viewed through the lens of Return Driven Strategy.

The promise of the Return Driven Strategy framework is its ability to guide leaders and their companies toward higher levels of sustainable performance and create greater shareholder wealth.

Frigo, Mark L. and Joel Litman, DRIVEN: Business Strategy, Human Actions and the Creation of Wealth, Strategy & Execution Press (2008) 
http://www.amazon.com/Driven-Business-Strategy-Actions-Creation/dp/0981457304

This book describes the Return Driven Strategy framework and the performance criteria for identifying high performance companies.

Frigo, Mark L. "Return Driven: Lessons from High Performance Companies" Strategic Finance, July 2008 (cover article)

Frigo, M. and J. Litman, "When Strategy and Valuation Meet – Five lessons from Return Driven Strategy" Strategic Finance (August 2004) (cover article)

Frigo, Mark L and Venkat Ramaswamy, "How Enterprises Can Create New Value" Strategic Finance (October 2010)

Frigo, Mark L. and Vijay Govindarajan, "How CFOs Can Drive Innovation" Strategic Finance (July 2010)

Frigo, Mark L. "Strategic Risk Management: The New Core Competency" Balanced Scorecard Report (Harvard Business Publishing) January-February 2009

Beasley, M. and M. Frigo, "Strategic Risk Management: Protecting and Creating Value" Strategic Finance May 2007 (cover article)

Frigo, Mark L. and Venkat Ramaswamy, "Co-Creating Strategic Risk-Return Management" Strategic Finance, May 2009 (cover article)

Needles, Jr., Belverd E., Anton Shigaev, Marian Powers, and Mark Frigo, "Strategy and Integrated Financial Ratio Performance Measures: A Longitudinal Multi-Country Study of High Performance Companies," Studies in Financial and Managerial Accounting, (London: JAI Elsevier Science Ltd.), 18, (2010)

Banergee, Bhabatosh, Needles, Belverd E. and Mark L. Frigo, "Corporate Governance in India: Issues and Practices of High Performance Companies" Indian Accounting Review June 2009 Vol. 13 No. 1

Needles, Belverd E., Powers, Marian. and Mark L. Frigo. "Performance Measurement and Executive Compensation: Practices of High Performance Companies" Studies in Managerial and Financial Accounting. Vol. 18, 2008

Needles, Belverd E., Marian Powers, Anton Shigaev and Mark L. Frigo "Financial Characteristics of High-Performance Companies in India" Indian Accounting Review, (Vol. 11, No. 1 June 2007)

Needles, Belverd E., Marian Powers, and Mark L. Frigo, "Performance Measurement and Executive Compensation: Practices of High Performance Companies," Studies in Financial and Managerial Accounting, (London: JAI Elsevier Science Ltd.), 18, 2008, forthcoming.

Needles, B.E., M. Powers, A. Shigaev and M. Frigo "Financial Characteristics of High-Performance Companies in India" Indian Accounting Review, 2007

Needles, B, Frigo, M. and M. Powers, "Strategy and Integrated Financial Ratio Performance Measures: Further Evidence of the Financial Performance Scorecard and High Performance Companies" Studies in Managerial and Financial Accounting Volume 16, (2006) 

Frigo, M, Needles, B and M. Powers, "Strategy and Integrated Financial Ratio Performance Measures: Further Evidence of the Financial Performance Scorecard and High Performance Companies" Studies in Managerial and Financial Accounting Volume 16, (2006)

Frigo, M, Needles, B and M. Powers, "Strategy and Integrated Financial Ratio Performance Measures: Empirical Evidence of the Financial Performance Scorecard and High Performance Companies" Studies in Managerial and Financial Accounting Volume 15, (2004)

Frigo, M. L, "Growth isn't always good: Knowing When and Where to Grow" Strategic Management (December 2004)

Frigo, M.L, "Strategy and Execution: A Continual Process" Strategic Finance (April 2004)

Frigo, M. L, "Focusing Strategy on Fulfilling Customer Needs" Strategic Finance (January 2004)

Frigo, M. L, "The Segments, Offerings, Needs Matrix" Strategic Finance (December 2003)

Frigo, M. L, "Performance Measures that Drive the Goal Tenets of Strategy" Strategic Finance (October 2003)

Frigo, M. L, "Performance Measures that Drive the First Tenet of Business Strategy" Strategic Finance (September 2003)

Frigo, M. L, "Mission Driven Strategy" Strategic Finance (August 2003)

Frigo, M. L, "Strategy and the Board of Directors" Strategic Finance (June 2003)

Frigo, M. L, "What's Missing in Our Strategic Plans?" Strategic Finance (May 2003)

Frigo, M. L, "Building the Verbs of Strategy on the Nouns of a Business" Strategic Finance (April 2003)

Frigo, M.L., B. E. Needles, Jr, and M. Powers, "Strategy and Financial Ratio Performance: The Case of an Emerging Economy," Indian Accounting Review (January, 2003).

Frigo, M. L., B. Needles and M. Powers, "Strategy and Financial Ratio Performance Measures" Studies in Managerial and Financial Accounting Volume 14, (2002)

Frigo, M. L, "Supporting Competencies of Return Driven Strategy" Strategic Finance (July 2002)

Frigo, M. L, "Strategic Competencies of Return Driven Strategy" Strategic Finance (June 2002)

Frigo, M. L, "Strategy, Business Execution and Performance Measures" Strategic Finance (May 2002)

Frigo, M. L. and J. Litman, "What is Return Driven Strategy?" Strategic Finance (February 2002)

Frigo, M. L. and J. Litman, "What is Strategic Management?" Strategic Finance (December 2001)

RELATED RESEARCH ON STRATEGIC RISK MANAGEMENT

Frigo, Mark L. and Richard J. Anderson, Strategic Risk Management: A Primer for Directors and Management Teams (2012)
www.markfrigo.com

Frigo, Mark L. and Richard J. Anderson, "What is Strategic Risk Management?" Strategic Finance (March 2011)

Frigo, Mark L. and Richard J. Anderson "Strategic Risk Assessment: A First Step for Risk Management and Governance" Strategic Finance December 2009 (cover article)

Beasley, Mark S. and Mark L. Frigo, "Strategic Risk Management: Creating and Protecting Value" Singapore Accountant, January-February 2008 (adapted by the Singapore Accountant from Strategic Finance)

Frigo, M., "When Strategy and ERM Meet" Strategic Finance, January 2008.​

Return Driven Strategy Case Studies

Read what CEOs have to say about the value of using the Return Driven Strategy framework to drive profitable growth and sustainable performance.

Reading Bakery Systems

This case is written by E. Terry Groff, President of Reading Bakery Systems. Terry took over his father's small business in 1974. Terry was introduced to Return Driven Strategy by his son Ryan Knoll, at the time, a lawyer and MBA candidate at DePaul University. Terry used RDS to transform the way Reading Bakery Systems looks at customers, suppliers and other strategic initiatives to dramatically increase bottom line performance.

The following video clips include Terry Groff, Chairman of Reading Bakery Systems, describing how he was introduced to the Return Driven Strategy framework at DePaul and used it to drive profitable growth at his company.

Video 1 – Overview of the Company

Video 2 – Discovering Return Driven Strategy

Video 3 - Changing the Way We Think

Video 4 - The Results

Dr. Bart Madden's presentation on Management's Worldview: Four Critical Points About Reality, Language and Knowledge Building to Improve Firm Performance.

The GrubHub Debate: An interactive session led by Mr. Russell Gottesman, founder of Commuter Advertising

Professor James Hurley's Case Study Presentation in Vigilance to Forces of Change: Opportunity Knocks... or is it Risk at the Door?

Laidlaw Education Services
This case is written by Jim Folkes, former Vice President of Strategy and Business Development at Laidlaw Education services. Jim used Return Driven Strategy to lead his highly successful transformation efforts there beginning in 2003.

Ziegler Companies
This case study is written by John J. Mulherin, CEO of Ziegler Companies, Inc., a small investment services boutique. John used Return Driven Strategy to develop and communicate the company strategy in a more effective way. Ziegler experienced major performance improvements by redefining their customer markets and segmenting more appropriately. This case was featured in Strategic Finance magazine.

Mark L. Frigo, PhD, CPA, CMA
Director, The Center for Strategy, Execution, and Valuation
Director, The Strategic Risk Management Lab
mfrigo@depaul.edu

Creating Shared Value Lab

Creating Shared Value (CSV) Practices Lab

The Center for Strategy, Execution and Valuation
Dr. Mark L. Frigo

The Creating Shared Value Practices Lab in the Center for Strategy, Execution and Valuation at DePaul University is an engagement platform for thought leaders, business leaders and government leaders to co-create and share leading practices in shared value creation. The work of the CSV Lab is spearheaded by Dr. Mark L. Frigo, Director of the Center, along with his research partners, clinical professors and research fellows.

Creating Shared Value

Creating Shared Value (CSV) is based on the pioneering work of Michael Porter and Mark Kramer at Harvard University and involves value creation for business that simultaneously yields more profit and greater social impact, resulting in powerful transformations and opportunities for growth and innovation in both business and society as described in Harvard Business Review article by Porter and Kramer. For more information, see http://hbr.org/2011/01/the-big-idea-creating-shared-value.

A number of companies including Nestlé, Medtronic, Pfizer, General Electric, Google, Intel, Johnson & Johnson, and Unilever have begun to develop creating shared value initiatives. Creating Shared Value is consistent with concept of making sustainability work for business and for society. Incidentally, many of these companies meet the criteria of sustainable high-performance companies in the Return Driven Strategy initiative as described below.

Conscious Capitalism and Creating Share Value

The Creating Shared Value Practices Lab will also integrate the "Conscious Capitalism" concept as described the book Conscious Capitalism: Liberating the Heroic Spirit of Business (Harvard University Press) by the founder and Co-CEO Whole Foods Market, John Mackey, and Bentley Professor Raj Sisodia. For more information, see http://hbr.org/product/conscious-capitalism-liberating-the-heroic-spirit-/an/10845-HBK-ENG.

Conscious capitalism has four tenets: higher purpose, stakeholder integration, conscious leadership, and conscious culture and management. The tenets and concept of Conscious Capitalism are consistent with the 11 tenets and three foundations of the Return Driven Strategy framework of sustainable high-performance companies and is used in the CSV Practices Lab to analyze the strategic activities of companies in our seminar courses and workshops.

Creating Shared Value (CSV) Practices Lab Mission

The Creating Shared Value (CSV) Practices Lab in the Center for Strategy, Execution and Valuation in the Kellstadt Graduate School of Business at DePaul University is an engagement platform for thought leaders, government leaders, international organizations and business leaders to co-create and disseminate leading practices to drive sustainable business shared value.

Research on High Performance Companies and Creating Shared Value

The CSV Lab's work is based on extensive research in the Return Driven Strategy Initiative, which focused on the strategic activities of high-performance companies as describe in the book DRIVEN: Business Strategy, Human Actions and the Creation of Wealth, (with Joel Litman) and continuing streams of research of the strategic activities of high performance, high integrity companies which includes the forthcoming book by Stanford University Press, DRIVEN STRATEGY: Creating and Sustaining Superior Performance. The Return Driven Strategy framework described in the book DRIVEN, describes 11 tenets and three foundations of sustainable high-performance companies as shown in the following exhibit below.

The framework is being used In the CSV Practices Lab to analyze strategic activities of companies and develop CSV initiatives. We are also using the Return Driven Strategy framework in seminar courses and workshops where we analyze CSV initiatives of high performance companies. The Commitment Tenet "Ethically Maximize Wealth" can encompass how organizations can create shared value. For more information about the Return Driven Strategy framework, see www.markfrigo.com.

CSV Research

The CSV Practices Lab will research on leading practices in strategies and strategy execution for aligning business strategy to create shared value. It helps future and current business leaders to develop approaches for co-creating shared value and co-creating leading practices for Shared Value Business Models. One of the initial projects of the CSV Practices Lab is to identify and describe CSV initiatives and strategies and the performance measures used to manage and monitor them. Companies can create shared value opportunities in three ways: (1) Re-conceiving products and markets; (2) Redefining productivity in the value chain and (3) Enabling local cluster development. In this research project, we will analyze these three streams of creating shared value through the lens of the Return Driven Strategy framework and identify the performance measures used to manage and monitor CSV performance. In addition, we will examine the use of Strategy Maps to implement shared value strategies between private, public and NGO sectors. This study will also use the "Win More - Win More" philosophy of the Value Co-creation Paradigm (see reference 4) through engagement platforms. Value Co-Creation with both external and internal stakeholders helps balance Risk-Return by mitigating different types of risks while enhancing shared value creation. Co-Creating Shared Value Strategy is about taking a balanced approach to Risk-Return management by engaging in value co-creation with customers, employees and other key stakeholders which reflect strategic choices made by the company to maximize value ethically through co-creation. Value co-creation rests on the four key building blocks of Dialogue, Access, Risk-reward understanding and Transparency (DART) that enable interactions among stakeholders to be more co-creative which will be used to examine CSV initiatives. Value co-creation rests on the four key building blocks of Dialogue, Access, Risk-reward understanding and Transparency (DART) that enable interactions among individuals and with processes to be more co-creative. Through engagement platforms that are DART-enabled, organizations can:

  • Engage all stakeholders in the co-creation of organizational purpose and decision making, thereby not only focusing on what stakeholders truly value, but also going beyond the conventional firm-centric view of product-service strategy
  • Reduce risk by leveraging the knowledge and skills of all stakeholders — both individually and as communities
  • Incorporate a more broad-based experience-centric view of value into their operations

For more information about the Creating Shared Value Practices Lab and its research reports, seminars and workshops, please contact:

Dr. Mark L. Frigo
Director, The Center for Strategy, Execution and Valuation; Shared Value Creation Lab
Ledger & Quill Alumni Distinguished Professor of Strategy & Leadership
(312) 362-8784
mfrigo@depaul.edu
www.markfrigo.com

References
(1) Porter, Michael E. and Mark R. Kramer, "Creating Shared Value: How to Reinvent Capitalism and Unleash a Wave of Innovation and Growth" Harvard Business Review (January-February 2011)
(2) Frigo, Mark L. and Joel Litman, Driven: Business Strategy, Human Actions and the Creation of Wealth, Strategy & Execution: Chicago, IL (2007)
(3) Frigo, Mark L. (with Robert S. Kaplan and David P. Norton), "The Balanced Scorecard: 20 Years and Counting" Strategic Finance (2012)
(4) Value Co-Creation is described in Venkat Ramaswamy and Francis Gouillart, The Power of Co-Creation (2010); and C. K. Prahalad and Venkat Ramaswamy, The Future of Competition: Co-Creating Unique Value with Customers, Harvard Business School Press (2004)
Frigo, Mark L. and Venkat Ramaswamy, "Co-Creating Strategic Risk-Return Management" Strategic Finance (2009)
(5) Epstein, Marc J. Making Sustainability Work: Best Practices in Managing and Measuring Corporate Social, Environmental and Economic Impacts, Greenleaf Publishing, (2008)
(6) Mackey, John and Raj Sisodia, Conscious Capitalism: Liberating the Heroic Spirit of Business (Harvard Business Press) 2013

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