Financial Behavior Makes Money

Financial Behavior Makes Money

Think about the most successful companies you've encountered—what sets them apart? It's not just their products or market strategy; it's the financial behavior of their leaders. Yet, many leaders and investors still dismiss behavioral understanding as a 'soft skill,' favoring intuition or deferring it to a later culture-building exercise.

However, the truth is undeniable: the energy forces of money are deeply embedded in every organization, and they are driven by the CEO and senior leadership team's behavior. This financial mindset influences countless decisions that shape the organization's future.

Understanding financial behavior is not just a nice-to-have—it's a critical, hard-core component of success that demands attention now. Remember, people make decisions. Historical financial data reflects past decisions. Reliably knowing today's decision-makers financial behavior will inform you about future financial performance.

The Holy Grail: Knowing the Financial Mind of Every Leader, Employee and Client Globally.

Would your beliefs and approach to gaining behavioral insights change if you had them available at your fingertips via an AI-driven process that automatically helped you understand the mind of every leader, employee and client you deal with or are considering dealing with?

I would like you to think about the power of knowing financial behavior insights earlier in instances such as:

?

1.????? Undertaking due diligence to gain more transparency into the mindset of the leadership team you are investing in.

2.????? Assessing CEO and senior leadership team performance.

3.????? Addressing whether you have the right people with the capabilities to drive new product innovation.

4.????? Engaging teams and managing conflicts in implementing a significant change management initiative that will build organizational culture.

5.????? Knowing the biases of the leaders making high-stakes decisions that influence the business's long-term strategic direction.

?

The game-changing AI-driven behavioral analytics solution is here, and it is called the DNA Digital Scan. The DNA Digital Scan accesses public data sources to automatically produce financial behavior insights without user involvement processed by DNA Behavior's science-based technology systems developed since 2001. Nevertheless, the DNA Full Scan assessment requiring active participation is still available for enabling an even deeper dive.

?

The Money Mindset of Leaders Drives 80% of Valuation.

We deployed the DNA Digital Scan to objectively measure 4895 Key Executives in 495 S&P companies as an exercise. Then ranked the companies based on the strength of their leadership financial value creation capabilities against increased company profits compared to competitors.

The exercise proved that 80% or more of the company valuation trajectory comes from an optimal mix of six leadership financial behavior competencies. The competencies are listed below:

Scientific Proof: Financial Behavior Creates Financial Value

Behavior influences increased profits relative to competitors

The table above highlights the following:

?

1.????? Investing in building an engaging organizational culture will generate increased profits.

2.????? The leader's Financial Goal Drive to push sales growth is the biggest contributor to profits.

3.????? Building a higher financial valuation trajectory requires all three of the following behaviors to be strong so that a long-term sales pipeline of new products is developed at a relatively low cost: Financial Goal Drive, Innovation Focus and Fiscal Control. ?

4.????? Financial Prudence is a key behavior for leaders because it ensures that key decisions are responsibly made with reasonable resource usage with appropriate governance processes.

?

Another important insight from our research was that CEOs tend to have a strong Authority Bias which means their financial behavior style will strongly influence company decision-making.

?

Financial Outperformance Awaits for Mastering GenAI Adoption

Our research shows that companies in the Information Technology Sector are most likely to be the "GenAI Business Transformers," demonstrating a higher financial value creation capability, potentially generating a 19% increase in profits, much higher than other industries.

Potential Strong Long-Term Stock Value Out Performance When You Know the Minds of Company Leaders

Further, our analysis shows that a portfolio comprising the top 25 S&P companies based on the measurement of leadership financial value creation capability outperformed the S&P 500 index over five years.

Now is the perfect time if you haven't explored how this new DNA Digital Scan technology can benefit your firm. The financial behavior data produced is the new "liquid gold" for assessing leaders and teams in any setting.

Let's discuss how we can help you learn more about the financial behaviors of the people you are dealing with and relying on to create financial value. Please send me a message at www.dhirubhai.net/in/hughmassie

?

Zach VanZile

Business Consultant PEO | HR | Payroll | Benefits | Workers Comp | Staffing Solutions

2 个月

Talk about #ForwardThinking! #Visionaries! #Pioneers!

要查看或添加评论,请登录

社区洞察

其他会员也浏览了