- Published: 02 August 2009
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A Breakthrough Leadership Model
by E. Ted Prince
Published by McGraw Hill
Financial literacy and business acumen - similarities and differences
Read an excerpt from the book:
The 3 Financial Styles of Very Successful Leaders delivers a unique approach you cayour leadership ability, achieve high performance, and increase business growth. Beneficial to senior managers and executives, the book helps you identify your own financial style and understand how root behaviors impact the firm's strategy and performance.
Preview The 3 Financial Styles of Very Successful Leaders in the Spring 2005 issue of the MIT Sloan Management Review.
The Financial Signature®: A New Outcome-Based Theory of Leadership
This book incorporates a new theory of leadership based on a unique approach. The book develops the concept of a Financial Signature® possessed by all leaders and executives that drives the financial performance and outcome, the market value and ultimately the valuation, of the organization they lead. This book shows that the personal financial traits of leaders impact their organizations through predictable financial decisions and strategies This issue is one that is being researched extensively by the Perth Leadership Institute. It opens up a totally new perspective on leadership. It shows that organizations run by certain types of leaders will have a distinctive valuation trajectory and outcome.
We term the personal financial traits of leaders, the Financial Signature®. This has been a focus of much of our research. The underlying model behind the Financial Signature can be operationalized and measured. Our research shows that the Financial Signature does indeed correlate with the financial performance and the valuation outcome of companies and enterprises.
Linking The Financial Signature® with Financial Outcome and Market Value
The Financial Signature® of leaders has wide-ranging ramifications. In effect it links organizational psychology with the theory of the firm. To date, leadership theory has been either based on a clinical psychology approach or a competency based approach. The Holy Grail of leadership theory links these with company outcomes and company valuation. In effect this is a theory that belongs to the emerging field of behavioral economics. Our research into the Financial Signature of leaders promises to be a new contribution to this linkage.
Our approach to Financial Signature® has some practical consequences and implications in real life. Coupled with our leadership assessments (specifically the Financial Outcome Assessment) it enables us to predict the valuation consequences for a company of their particular leader. Armed with this knowledge we can show how strategies can be modified to increase company valuation. This is a new and unique service that is possessed by no other company in the financial analysis or leadership areas.