Overview
Value Creation and Leadership: How Companies Deal with Disruption and Innovation
By Prof. Massimo Massa, Rothschild Chaired Professor of Banking & Professor of Finance, INSEAD
The purpose of this Workshop is to see, define and operationalize the concept of value creation for companies. Value creation has been traditionally interpreted in different ways by CFOs, COOs, and CEOs as well as by Owners and Directors. The workshop is a structural approach to value creation that shows how to blend the different functions of the company and optimizes them.
The Workshop will start from the analysis of why companies do not create value and go in detail in analyzing the reasons. We will consider organizational and behavioral reasons.
Then, we will zoom on the different facets of value creation: growth, profitability and risk management. We will first separately address them and then we will see how to manage them jointly.
The workshop will deal with each one of these features and operationalize them in terms of the path of a firm that successfully evolves from the early entrepreneurial stage, to market leadership, listing, world dominance and final decay. We will see what the model that better helps to understand it is and how to apply it. Then, we will apply it to model and understand why companies do not properly cope with disruption. We will see the difference between innovation and disruption and how to manage both.
Benefits of attending:
This is a series of 3 workshops that present a coherent framework that help to understand the corporate world and to develop the main path for the managers to follow and lead people. The benefit is the link between strategies, finance and behavioral leadership that help to structure thinking around value creation.
Who should attend?
- CEOs
- Owners
- Board Members
- Directors
- CFOs and whoever wants to understand value creation in the 21st Century
Agenda
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10:00 AM – Onwards
Registration
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10:25 AM – 10:30 AM
Welcome address
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10:30 AM – 1:30 PM
The Concept of Value Creation
The goal is to understand the concept of Value Creation and to differentiate it from just Profitability and Growth. We will first discuss what the key drivers and constraints to Profitability, Sustainability and Growth and the links between them. We will study how these three feature of value creation reflect in profit generation and risk management. We will see how different types of risk and risk management frameworks are required. Then, we will identify the fundamental short term trade-off and the long-term value creation tool-kit management. We will investigate the successful and failed cases as what drove success.
- Explore a coherent framework to define and operationalize the idea of value creation
- Understand the concept of Value Creation and to differentiate it from just Profitability and Growth
- Understanding market leadership
- Identifying and discussing the key value creating and financial issues faced in its search for growth
- Distinguish between value creation, profitability, growth, sustainability and market shares
- Provide participants with a set of tools that allows them to screen alternative corporate strategies, to evaluate and reassess the overall organizational structure of the company and to develop a global strategic view of value creation within their industry
Break for 5-minutes at 12 pm
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10:25 AM – 10:30 AM
Welcome
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10:30 AM – 1:30 PM
Value and The Financial Markets
The goal is to see how managing for value conflicts with managing for stock price and how to play the financial markets. We will consider the difference between creating value and increasing stock market price. We will identify the fundamental problem that listing creates to value creation as well as the opportunities it offers. We will look at the link between stock price, value and management of innovation and obsolescence risk.
- Understand the concept of value creation from a financial perspective
- Discuss how tax considerations, expected costs of financial distress, agency costs and asymmetric information determine a company’s optimal capital structure and its financing dynamics
- Look at how value is created by optimizing the payout policy, studying different companies and look at how their value is related to the payout policy and cash holding
- Identify and quantify synergies as well as sources of value creation in M&A deals
- Analyzing the value creation process in the context of company restructuring
- Analyze how value is created by taking advantage of raising equity capital from the public markets for the first time
- Evaluation of international ventures focusing on the main value drivers
Break for 5-minutes at 12 pm
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10:25 AM – 10:30 AM
Welcome
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10:30 AM – 1:30 PM
How to Lead People to Create Value
The goal is to understand the behavioral biases that prevent value creation and how to overcome them. We will look at the biases that affect managers and how they impact value creation in terms of profitability, sustainability and growth. We will consider which biases affect cash flows and which biases affect risk management. We will define a framework to deal with them. Then, we will see how biases block the development and innovation and in particular prevent managers from successfully cope with disruption. Applications will be provided to see how a proper framework can address these issues.
- How to handle biases related to team work and how to create “high performing teams
- Understanding the major behavioral biases affecting managers and owners and to see how to address them
- Laying out a framework to handle biases related to team work and how to create more effective board
- Understand a leadership framework that induces positive interactions and dynamics amongst group members
- Exploring the need for managers and executives to have positive relationships with those around them
- Understand the importance of good teamwork in demanding and occasionally turbulent environments
- Emphasize the importance of contexts, and recognizing the changes in contexts that owners and their collaborators face
Break for 5-minutes at 12 pm
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1:30 PM – Onwards
Event Concludes
Expert
Prof. Massimo Massa
Rothschild Chaired Professor of Banking & Professor of Finance, INSEAD
Prof. Massimo Massa
Rothschild Chaired Professor of Banking & Professor of Finance, INSEAD
Massimo Massa is the Rothschild Chaired Professor of Banking and Professor of Finance at INSEAD, where he teaches international finance, corporate finance, asset management, behavioral finance and governance in MBA, EMBA, PhD and Executive programs. He graduated summa cum laude from the Department of Economics at the LUISS University of Rome, Italy. He has obtained an MBA from the Yale School of Management and an MA and a PhD in Financial Economics from Yale University. He is CPA and Auditor.
His research interests include asset management, corporate finance, behavioral finance, and financial intermediation. Dr. Massa has published articles on mergers and acquisitions, alliances, capital structure, dividend policy, share repurchases, risk management, initial public offerings, dividend policy, mutual funds, hedge funds, short-selling, behavioral biases, banking, financial intermediation, market microstructure, international finance, role of media and social networks in the financial markets, ownership structure, corporate governance, family firms.
His articles have been published in all the top academic journals such as Rand Journal of Economics, Review of Financial Studies, Journal of Finance, Journal of Financial Economics, Journal of Business, Journal of Financial and Quantitative Analysis, Journal of Financial Markets, Review of Finance, Journal of Portfolio Management, Journal of Banking and Finance, Management Science, Journal of Trading, Journal of International Economics, Journal of Monetary Economics, European Journal of Financial Management.
Dr. Massa’s research has been quoted and discussed in major magazines and newspapers (The Economist, BusinessWeek, New York Times, Wall Street Journal) as well as professional Journals (Creditflux, Journal of Trading) and Forums (Harvard Law Forum, Notre Dame Law Forum). Dr. Massa is Associate Editor of the Journal of Banking and Finance and the Journal of Financial Management.
Dr. Massa has been consultant with several companies on strategic issues related to governance, risk management, corporate financial and growth strategies. At INSEAD, Dr. Massa co-directs the Hoffman Fund for research in ownership and family firms.
Dr. Massa has created and manages the INSEAD Executive Master of Finance. Dr. Massa is the program director of the International Directors Programme, the Advanced Asset Management program, the Interalpha Banking program, the Strategic Banking program as well as the programme of Value Creation for Owners and Directors. He co-directs the Advanced International Corporate Finance programme and has directed several programs for corporations and banks, including Abn Amro, Maybank, Societe Generale, FinecoBank, Technip, Mubadala, Bertelsmann, Standard Chartered, Mandiri Bank, Alpha Bank, China Construction Bank, RHB, Ambank,VTB.
Dr. Massa’s current research and consulting activity focuses on two main areas. The first is the link between corporate financial strategies, governance and type of ownership and how this affects value creation, risk management and growth in corporations and financial industry (banks and asset management). The second area is behavioral finance and behavioral decision making for CEOs, board members and owners. Dr. Massa’s uses a behavioral framework to study the strategies of asset managers and banks and their synergies. He is currently focusing on Fintech.
Dr. Massa has previously worked in the Bank of Italy in the Banking Division (1989-1992) and in the Research Department (Monetary and Financial Markets Division) (1993-1997), participating in the day-to-day running of monetary policy and on the analysis of the financial markets
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