Mastering capital allocation

Mastering capital allocation

Strategy
Capital allocation aims to maximize shareholder value by deploying capital in ways that generate the greatest return. The purpose of capital allocation is to improve company performance by investing in growth opportunities and reducing or eliminating underperforming or non-essential businesses. Capital allocation decisions should be made with a long-term perspective, as opposed to being based on short-term financial results. Running a business takes work. There are a lot of factors that come into consideration, such as resources, finance, and management. There are a lot of examples of organizations that recorded great success but failed to manage their finances well, leading to their untimely demise. Prevention is always better than cure, so why not learn from those mistakes and ensure you don’t fall into those same traps? After all, a balanced capital…
Read More
A Guide on Strategic Planning

A Guide on Strategic Planning

Strategy
Often, we come across some grim statistics: 70% of enterprises fail within their first three years. Of the survivors, about 50% have faltered by the fifth. Surprisingly, business failure rates are consistent regardless of the industry or market. What drives failure? What is not surprising, though, is why organizations fail; you can count all of them on the digits of your one hand: market access, in-existent or rigid business plans, funding, competition, governance. What to do? What then can you do to avoid your organization falling into this abyss? Strategic planning is a part of delivering that wholesome solution. A strategic plan can be simplified to mean “knowing the current state of your organization and where you want it to go.” What is strategic planning? Strategic planning is the process…
Read More
Sustainability for Non-profit organisations

Sustainability for Non-profit organisations

Strategy
Non-profit organisations are strongly desirous of funding an array of programs designed to meet the needs of their target population. A key concern on this ambition is the continued ability of the non-profit to fund these programs; this is a quandary that non-profit leaders face every day. Sustainability for the non-profit organisation means the ability to continue serving the target community even with the risk of funding termination from key donors. The sustainability agenda has been an ever-present conversation, and it has lately been accelerated by the global pandemic. To deliver on long term planning necessary to diversify dependence on key donors while improving institutional capacity of the target population is a tight rope indeed. In spite of these challenges, the issue need to be tackled to prepare the non-profit…
Read More
Hard work Beats Talent; a lesson from James Douglas

Hard work Beats Talent; a lesson from James Douglas

Strategy
On the night of February 11 1990, under the bright Tokyo lights, little known James “Buster” Douglas delivered a vicious exhibition reducing to rubble possibly the most gifted heavy weight boxer of all times – “Iron” Mike Tyson. This crushing defeat of the Iron man would be the onset of a series of setbacks to the career of the Brownville kid whose debut to the world stage was legendary. The fight in Tokyo was supposed to be uneventful, a low key moment, another run of the mill facade that the Iron man was expected to triumph without much effort. So lowly was Buster rated that nobody was willing to host the fight in the USA, the bookies didn’t even assign odds to him save for Mirage who put it at…
Read More