The Blue Line Imperative: What Managing for Value Really Means

Chapter Eleven

Getting Net Present Value Right

We have discussed the significance of the blue line and the reasons a value orientation is the only sustainable one. We have described the behaviors that characterize environments in which value creation or value destruction are most likely to occur. We have underscored specific elements of a blue line culture and the pillars of trust, fairness, and learning that must drive it. The question you may now be asking (or may have been asking throughout previous chapters) is: how to estimate the value of a business decision? It is, as we have said, impossible to know precisely the value of any decision, so we must apply a rigorous process for valuation that will merely produce better estimates. Remember ...