Activist shareholders are often seen as villains by managers and boards. Their demands for strategic and organizational shifts—which can feel personal to managers—often challenge the soundness of a company’s strategy. However, leaders who treat activist shareholders solely as a risk or an annoyance are making a mistake.
Although they may be aiming to protect their companies, they’re missing out on an opportunity to tap one of the few free resources companies have to bring about value‑creating strategic change and build stronger business models.
To better respond to—and take advantage of—the campaigns of activists, leaders must learn to think the way they do. Most activists tend to follow a predefined process to identify and engage target companies. This article presents the three main components of the activist playbook—linking performance failures to organizational weaknesses, developing a plan of action, and creating a narrative in support of change—and describes how managers can anticipate and respond to activist campaigns.Leaders often treat activist shareholders as a key risk factor in running their businesses. In doing so, they miss out on an important opportunity to bring about value-creating strategic change.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
At Toyota shareholder meeting, all eyes on level of support for chairmanAt Toyota shareholder meeting, all eyes on level of support for chairman
Read more »
At Toyota shareholder meeting, all eyes on level of support for chairmanAt Toyota shareholder meeting, all eyes on level of support for chairman
Read more »
At Toyota shareholder meeting, all eyes on level of support for chairmanToyota Motor Chairman Akio Toyoda appears to be secure in his position, but all eyes are on Tuesday's vote.
Read more »
Gamestop shares slump following annual shareholder meetingGamestop’s CEO Ryan Cohen said the struggling video game retailer will focus on cutting costs and long-term profitability in an annual shareholder meeting Monday.
Read more »
Gamestop shares slump following annual shareholder meetingGamestop’s CEO Ryan Cohen said the struggling video game retailer will focus on cutting costs and long-term profitability in an annual shareholder meeting Monday
Read more »
Gamestop shares slump following annual shareholder meetingGamestop’s CEO Ryan Cohen said the struggling video game retailer will focus on cutting costs and long-term profitability in an annual shareholder meeting Monday. Cohen said this would involve “a smaller network of stores” — suggesting that store closures could be in sight. But no further details of reductions were immediately provided.
Read more »