How to improve your productive durability and drive perpetual value.
The world of business has changed for good. The longevity of companies is under tremendous pressure and fragility is accelerating fast. To lead companies towards productive durabilty, LongWealth offers leaders and owners an unconventional and nuanced pathway to help their organisations regain their true nature as Living Machines.
We help leaders protect their company’s productive durability. Such an approach will help companies save trillions of dollars in common and stakeholder wealth. The LongWealth model is based on the fundamental premise that evergreen institutions have a knack to tap into the eternal human values stored in Scarce Capital (purpose, brand, culture and innovation). This ability allows these companies to ride over volatility over time i.e. be perpetual. Therefore, the LW approach raises management from the mundane and limited to an exquisite search for infinite objectives.
A purpose-led virtuous circle
The LongWealth approach is focused on helping leaders strengthen lining up three pivotal factors which account for 70% of company longevity (see the diagram):
- Leadership Mindset and assumptions. Our research shows company destinies are deeply intertwined with the nature of implicit assumptions, biases and ego which account for growth stalls, crises and bankruptcies. We help leaders unearth and redefine the assumptions that literally define the future of the company.
- Scarce Capital. Every company has considerable intangible stock in Purpose, Brand, Culture and Innovation which are the real source of value. We help assess the current state and develop programs for leaders to monitor and side the scarce capital buildup.
- Perpetual cash flows. Every company has an opportunity to access the richness and order of time at its disposal through purpose and scarce capital. Especially post the 5th year horizon the exponential effects of Scarce Capital kick in to deliver exponential returns. We help leaders develop a line of sight to this significant reservoir of future cash flows. We build a custom framework to track the longevity risks and potential of the company which are non-linear in nature.
Tools and techniques to support the journey
To facilitate a practical approach to build Living Machines, LongWealth has created a variety of tools for owners and leadership teams.
- Discovering purpose archetypes – Universally resonating Discovery, Excellence, Heroism and Altruism models of building Purpose led firms.
- Assessing scarce capital resilience – Ten vital signs which express the health and workings of Intangibles
- Testing the perpetuity S-curve – A non-linear risk/reward assessment of the firm’s reservoir of future cashflows.
- Money Particle & Quantum Value Matrix – This 2×2 decision support technique allows owners and stewards tease apart their roles and responsibilities from day to day management while maintaining a bridge from the way finite money is earned in the near term to how infinite value is created over time.
The LongWealth tools and techniques have been painstakingly put together over two decades of direct experience with leaders of leading Indian groups as well as iconic global corporations.
It simultaneously draws on India’s timeless wisdom Sanatana Dharma and Greek philosophy while adopting cutting edge management tools, financial valuation and statistical models.
The essence of our experiences has been recently validated in primary research conducted on India’s top 100 companies and similar studies being conducted in the UK and US economies.