Corporate value creation needs bespoke treatment

Chronicles value‐based management (VBM) as it is approached by Boston Consulting Group (BCG) and uses figures to add emphasis to this system. States that the yardstick used by BCG is total shareholder return (TSR), giving historic appraisal and comparison between companies. Demonstrates that TSR is an objective function that is appropriate only at the corporate level. Believes that companies with top quartile TSR's usually have some factors in common, e.g. good management, sound strategies and competitive operating skills. Concludes BCG have no particular doctrine as consultants but try to work with both managing director and finance director to ease their individual company concerns and always focusing on behavioural consequences of making changes.