You are familiar with IQ, EQ, DQ and AQ, but have you ever heard of FQ? In a business community advocating the leader's charisma, how do you understand the leader's financial personality? And how does a leader's financial personality impact the market value of his company? On Nov.9th, Mr. Ted Prince, CEO and Founder of The Perth Leadership Institute and author of The Three Financial Styles of Very Successful Leaders presented his point of view upon "How Your Financial Personality Impacts the Market Value of Your Company".
Mr. Prince named several examples such as IBM and Microsoft to point out conventional approaches to valuation analysis of companies and financial impacts of executives were ineffective, because they were not linking leadership with the bottom line directly, causing the most leaders couldn't achieve desired financial performance. And what's more, most leaders often attribute external and internal factors but do not recognize issue of unconscious financial drivers leading to unintended financial results.
Through many years' case research, Mr. Prince arrived at an interesting conclusion that financial signature has a direct impact on the bottom line. Using two underlying personal financial traits, he divided leaders' financial signatures into nine types:
- Three Value-centric Trajectories: Buccaneer, Arbitrageur and Profiteer
- Three Resource-centric Trajectories: Mercantilist, Trader and Conglomerator
- Three Balanced Trajectories: Discounter, Consolidator and Venture Capitalist
A successful leader is willing to modify his financial personality consciously when keenly aware of his own. Then, the problem is "what is my financial personality?" You can get more details from his new books.