McKinsey Partner Tim Koller on Mastering Business Valuation

In this podcast episode, Anthony Taylor interviews Tim Koller, a McKinsey partner and co-author of "Valuation," to discuss strategies for building resilient businesses and increasing value. Koller emphasizes the importance of balancing revenue growth with margin management and return on capital, cautioning against excessive cost-cutting that could negatively impact customers. He highlights the need for CEOs to be actively involved in resource allocation and strategic decision-making, advocating for a granular approach to understanding business unit performance. The conversation also covers the significance of a capital investing framework that includes governance, analytics, processes, and decision-making, as well as the need for CEOs to dedicate adequate time to financial strategy, regardless of company size.