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MECA Methodology
Why was it developed?
Long-Term Growth Challenges
& MECA
What does MECA measure?
Why was it developed?
The MECA methodology was developed to help management work more
effectively towards a certain type of corporate transformation -
sustainable long-term growth.
A brief inspection of business history reveals
two basic types of corporate transformation managers encounter:
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Disruptive change - A quick
shift in the assets of the firm as a result of divestitures,
acquisitions, and mergers. In such situations, changes in market
share or financial results can occur so quickly that such figures
do not accurately reflect the working state of the firm. |
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Evolution - A deliberate
shaping of the firm to deliver sustainable long-term growth
in shareholder value. This situation is very different from
disruptive change and requires building fundamental capabilities,
most of which are intangible and difficult to measure. |
While both types of transformation require strong
leadership talents, disruptive transformation can be risky and traumatic
for a firm whereas evolution requires deeper understanding about
and alignment of the firm. The MECA methodology and the contents
of this report are intended to guide management in ensuring long-term
corporate fitness, which requires patience and commitment.
Long-Term Growth
Challenges & MECA
Executives typically would prefer a slower transformation rather
than risking potential trauma to their organization, but commonly
they face challenges in trying to provide long-term growth for shareholders.
The figure below captures the challenges typically encountered and
how MECA addresses those challenges:
What does MECA measure?
The MECA methodology measures the following key determinants:
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