The BASOS Initiative
BASOS is an acronym for Business Acting in Service Of Society.
The purpose of the BASOS Initiative is to transform the global business and investment communities around a new governing objective – to build an enduring institution that can create wealth for shareholders on an ongoing basis, in ways that enhance societal wellbeing.
The BASOS Initiative has five main components.
- A systematic approach to business transformation consulting that can double a company’s value in 3-5 years
- A new understanding of wealth creation, how to measure it, and how to deliver it on an ongoing basis
- A set of core principles that underpin all aspects of the business transformation process
- A series of unique digital assets with which to engage listed companies and institutional investors
- A new way of perceiving and responding to the most fundamental issues facing Boards and C-Suites
The BASOS Principles
Economic measures let us see how company performance translates into capital
market performance – and how wealth is really created in listed companies.
Primary focus on
the long term
Top-performing companies generally don’t focus on beating short-term expectations.
They focus on actions that increase expectations of economic profit (EP) to be
delivered in the future.
Central role played by creativity and innovation
It’s not possible to enhance EP expectations year after year just through cost
reduction and capital efficiency gains. Revenue growth through innovation
focused mainly on enhancing value for customers plays a central role.
A focus on all
Positive EP streams can only be maintained over the long term if all stakeholders benefit appropriately, and are seen as allies in creating wealth, not as
adversaries in maximising short-term profits.
A clear purpose under- pinned by a noble intent
An organisation’s purpose is an outgrowth of its conscious intent. A noble intent
that can apply to many companies is to build an enduring institution that creates wealth on an ongoing basis by doing something to benefit society.
More is not always
There is a sustainable level of economic profitability (ROE-Ke) and a sustainable level
of wealth creation (TSR-Ke) achievable by each listed company. Seeking to exceed
either is generally not in the interest of shareholders or other stakeholders.