
In this complex environment, traditional enterprise value models don’t help us make decisions that drive sustained value. These trends are fundamentally shifting strategy and operating models, and they create new expectations from a range of stakeholders. You can’t overstate how many megatrends organizations face, among them sustainability, cybersecurity threats, digitalization, automation, the Great Resignation, inflation, shareholder activism, polarization of views and constituencies, social equality and diversity, equity and inclusion (DEI). What does the Gartner enterprise value equation consider, and why? We asked Rita Sallam, Distinguished VP Analyst, why a new model is needed and what it can deliver for you. Gartner has developed a new enterprise value equation that offers executives a fresh way to view the decisions they make in terms of the impact those decisions deliver to various stakeholders and the value the organization realizes in return.ĭownload now: 3 Strategic Actions for Success for Your Function But traditional enterprise value models don’t effectively frame such choices. The calculus of these actions - or lack thereof - reflects the growing need for organizations to consider more than financials in their decision making. Shell says its exit from Russia will cost it up to $5 billion. Nestlé, initially criticized for not doing so, publicly explained that its decision was driven by humanitarian concerns, not profits. Hundreds of organizations, including Gartner, have pulled out of Russia since it invaded Ukraine.
