How is strategy affected in times of superabundant capital? How are strategic decisions being taken when capital is not a scarce resource?

1. The Investors Viewpoint
Strategy Talk
28.06.2018

2. Capital
For most of the past 50
years, business leaders
viewed financial capital as
their most precious
resource.

3. The traditional funding funnel
Apply hurdle rates to
reflect high capital costs.
Financially driven approach
to strategic investments:
• Limit the field of potential
projects.
• Encourage companies to
invest in a few „sure bets“
that clear high hurdle
rates.
• Sort out many options
early on
If you still sit on piles of
cash: buy back own stocks.

4. Core competencies under this paradigm
1. Long-term planning
2. Continual improvement

5. The development of Cost of Capital

6. Times they are changing

7. Do you remember?

8. The macro perspective

9. Truth is
» the skillful allocation of financial
capital is no longer a source of
sustained competitive advantage «

10. What really is in short supply?
» the skills and capabilities required to
translate good growth ideas into successful
new products, services, and businesses «

11. The new rules of Strategy
1. Reduce hurdle rates
2. Focus on growth (vs profitability)
3. Invest in experiments

12. Growth vs profitability
When capital was expensive, investments to improve
profitability trumped investments to increase growth. [...]
Six Sigma, [...] methodology, and other tools to remove
waste and increase efficiency. At the same time, however,
the rate of innovation has declined

13. understanding growth

14. The truth about exponential growth

15. The truth about exponential growth

16. Execution of strategy
1. Lower hurdle rates and relax other constraints around
investments.
2. Start making numerous small and varied investments.
3. Learn to quickly spot and get out of loosing ventures.
4. Aggressively support the winners and nurture them
into large new businesses.

17. New mindset
» If you want to win big,
be prepared to loose small several times. «

18. thank you!
Let‘s discuss.

19. Einstieg
Bitte stellt euch kurz vor
1. Background, Ausbildung & Werdegang
2. Rolle & Funktion heute
3. Deine 3 besten Investments
4. 1 Investment das schief gegangen ist
5. Was ist deine Strategie beim Investieren?

20. Leitfragen
1. Entscheiden Investoren strategisch?
2. Was können Unternehmen von den strategischen Ansätzen
der Investoren lernen?
3. Startups agieren mit einem Eco-System Mindset – wie
verändert sich das in Zeiten aufkommenden
Protektionismus?