Translating Strategy into Shareholder Value: A Company-Wide Approach to Value Creation

Time is an issue in all aspects of business. Speed can be the difference between success and failure. Compression of time can cause failure, affect accuracy and quality, and drain morale. Timing risk can be tied to time to completion, costs, and benefits of an initiative. Delay in time drives reduction in value (such as slower integration of operations) and lowers cost synergies. Let's look at some of the timing risks associated with the revenue enhancement merger discussed in the previous example.

• Completion—Delays in closing the transaction may hinder a company's ability to compete.

• Benefits—The buying company would realize revenues later than expected.

• Costs—Integration costs may be incurred earlier than expected.