I led a team of analysts, developing a template model and consolidating the financial analysis of the components businesses of a major electronics company, to gain insight into the sources of value and risk in the organisation.

The risk analysis identified the key sources of risk at the business-unit and corporate level. This revealed a natural hedge where two key business units—CRT monitors and flat-panel monitors—were exposed in opposite ways to the same risk. A rapid switch by customers from CRTs to the new flat panel technology was good for the flat-panel unit but bad for CRTs, and vice versa for a slow switch. Reorganising and aligning the business units to exploit this natural hedge led to the development of a new strategy and significant value creation.

Follow-on work introduced value-based management into all the business units.