Introduction to the ROKC Method is a highly focused management approach in which everything a business does is to maximize the Return On Key Component. The ROKC Method recognizes that all businesses are based on a key component: the asset the business owns or controls that provides it with a competitive advantage in the markets in which it operates.
A successful business is one that manages to use the key component to produce a product or service the customer wants to consume while identifying and mitigating risks and creating enough value to pay for the cost of capital, return capital to shareholders and reinvest in the business's future. Clearly identifying the key component allows the company to be totally transparent about its value generating proposition that every employee and stakeholder can behave like a leader.
The longevity of a business depends on the ability of its leaders to constantly monitor the competitive advantage of the key component and identify the correct moment to substitute the old one with a new key component. Leadership built on the ROKC maximizes shareholder returns and stakeholder satisfaction.
built on the ROKC™
Introduction to the Return On Key Component™ Method
Who am I?
Expert at inﬂuencing outcomes, the use of power
20+ years of worldwide leadership experience:
Chairman, CEO, and CFO
Advisor to investors, BOD, AB, C-level executives
Innovative companies operating across industries
Who Are You?
Investor, Fund, VC, PE
Board of Directors, Advisory Board
What’s the ROKC™
Improved return on invested capital
Improved strategy formulation
The key component is the asset a business owns or
controls that gives it a competitive advantage in the
market in which it operates.
1. The business owns or controls the asset.
2. The asset provides a competitive advantage.
3. The competitive advantage is market speciﬁc.
Ownership or Control
Land, Machinery, Patents, Copyrights, Trademarks,
Deeds,… are titles of property.
A license, lease, certiﬁcate,... give the right to use
someone else’s property.
Property is the basis of all legal systems.
How big is the advantage?
How long will it last?
A competitive advantage is market speciﬁc.
3 Qualities of the Key
1. Ownership, or control
2. Competitive advantage
3. Market speciﬁcity
Having identiﬁed the key
component and its competitive
you can build a business.
5 Key Steps to Success
A key component with a robust competitive advantage.
A process that employs the key component in fashioning a product or service.
A process that communicates the product or service beneﬁts to the customer,
who perceives them and ultimately buys the product or service.
Risks to the key component, its competitive advantage, and processes of
production and consumption can be identiﬁed, managed and mitigated.
Enough value can be created by the points 1 - 4 to cover the (a) cost of capital,
(b) return money to shareholders and (c) reinvest in the business’s future.
The Return On Key
Each process (production and consumption) must be
determined & evaluated to maximize the ROKC™.
Every stakeholder should know what is the key
component so that they can actively participate in
maximizing the ROKC™.
Risks to the key component, its competitive advantage
and processes must be identiﬁed, evaluated and
mitigated with the objective of maximizing the ROKC™.
The Return On Key
Keeps the business
anchored in what is most
valuable; the key
ﬂexible enough to adapt to
The Return On Key
maximizes shareholder value, and