In a recent survey by Deloitte and The Deal, more than a quarter of the executives polled (26 percent) believe having the ability to analyze value and risk is the most important skill in their arsenal. 50 percent rated it as the first or second most important skill.
Yet, when these same executives were asked what represents the greatest opportunity for improving corporate development effectiveness, analytics ranked below organization, process and talent.
Unfortunately, that’s the same confounding inconsistency we saw when we polled financial, procurement and risk executives during Aravo’s supply chain risk webinar series earlier this year. In both cases, it appears that even though risk management is recognized as a key business cornerstone, companies seem unwilling (or unable?) to update their risk management strategies.
“It’s fascinating that value and risk continue to be of paramount importance, and yet there’s this apparent disconnect,” agrees Chris Ruggeri, principal, Deloitte Financial Advisory Services LLP (Deloitte FAS). “For companies to gain greater insight and to be able to more dynamically manage and protect value, they should consider refining their approach, explore new ways of thinking and consider, for example, probabilistic modeling, decision analysis and perhaps real options — all tools of the Corporate Development office.”
Deloitte’s new study, titled “Corporate Development 2010: Refining the M&A Playbook,” focused on how companies are planning their growth strategies as the economy rebounds. Interestingly, the survey also found that: (more…)