Return on Nothing
2009-01-20So many corporations still tend to focus on developing the already streamlined core business, or acquire more businesses to be streamlined. I however see so much potential in the hidden assets side, that I feel we have to communicate a new ratio: Return on Nothing
Is it so, that short-term motivators drives decisions beyond reason?
Investors as well as managers make fatal decisions based on short term results, however all know that sound returns demands strategic thinking and willingness to make the correct moves. Correct moves in terms of bet of interest for the business of the company, rather than based on wrong type of greed-decisions.
I have in many of my business cases seen that returns can be generated only by combining technologies (here: ideas, objects and people). Very few, if any, new investments are needed to finds potential in existing assets. All that is needed are the three pillars of Innovation: Knowledge, Information and Resources (referring to my previous writings).
When it comes to resources, I believe that managerial focus and time is what most intrapreneurs need to drive innovation further. These people can and will create virtually RoN by entrepreneurial behavior in a blue-chipped ocean.
I am an advocate of continuous asset mining. However for an employee it is also the same thing as admitting: I am not fully capitalizing on the assets I am paid to manage. Well, this is short term. Long term I vote for those that question, seek to develop and restart.
-Dariush Ghatan