Finally, Amram provides consistent, but differentiated, valuation. One of the principal challenges in valuation is that different investments require different methodologies. Traditional discounted cash flow works fine if there is a single decision point and fairly predictable cash flows. But a lease for an offshore oil field or for 3G spectrum requires options-based valuation, because of the series of decisions and the significant market price uncertainty involved; venture capitalists use yet a different valuation method. One problem with most valuation books is that they try to use a single valuation method for these very different investments. Amram honors the differences by offering several methods and provides a simple logic to decide which method to use, yet ensures that all the methods use a common philosophy so that a firm’s full sweep of opportunities can be valued consistently. For valuation, Value Sweep is the book to use.
Will these four books equip you to strategize a Battle of Tannenberg? Probably not on their own. But with their combination of stories, tools, and frameworks, they will equip the modern strategist to build a profitable enterprise — even without the help of the Prussian army.
Reprint No. 02407
Chuck Lucier, [email protected]
Chuck Lucier is senior vice president emeritus of Booz Allen Hamilton. He is currently writing a book and consulting on strategy and knowledge issues with selected clients. For Mr. Lucier’s latest publications, see www.chucklucier.com.
Jan Dyer, [email protected]
Jan Dyer spent the last 11 years at Booz Allen Hamilton, where she served as the firm’s director of intellectual capital and worked with corporations in a variety of industries. She specializes in the strategic application of knowledge and learning.