Structural changes are key ...
Underlying the call from investors to focus more on long term value creation are structural trends that could impact the strategy development process of a company and accelerate or constrain the strategy execution
... in the shift to long term value creation
A recent blog from KPMG, Investors’ request for long-term value creation is a big present for companies, co-authored by SHIFTTO Editorial Board member Lars Kurznack with Wim Bartels and Mark Vaessen, shares insights from the study Extending Horizons, in which KPMG analysed corporate reporting from 23 major non-financial Dutch listed companies. They discovered that most companies are able not to meet investor demand for long-term value creation in their strategies and corporate reporting.
But Dutch companies that do take a structural (and not just a window-dressing) approach to long term value creation – called for by Eumedion, the Dutch investor representative body, in their Focus Letter 2019 – have a great opportunity to take long-term value creation to the core of their business. “Eumedion’s call for focus on the long-term fits into a broader global trend among institutional investors towards more attention for the strategic framework for long-term value creation of companies. Driven by large institutional investors such as BlackRock, Vanguard and APG, it is aimed at driving strategic shareholder engagement for long-term success,” said Bartels, Vaessen and Kurznack.