For thirty years, McKinsey's Valuation has taught leaders how to measure value. This book shows how to create it. Strategy & Value is the executive's companion to Valuation. It's a guide to the strategic decisions that promote exceptional, lasting value creation―from the firm that has advised more CEOs on strategy than any other.

Strategy should be getting better. Leaders have never had more frameworks, tools, and data to work with. Yet only one in five executives say their strategies would pass a rigorous test of quality, a forty percent decline over fifteen years. Meanwhile, the gap between economic profit winners and losers has been widening.

Why do some companies succeed while others lag behind? The winners focus on fundamentals that don’t change even when everything else does. This book distills those fundamentals into four foundations and shows how grounding strategy in them unlocks the bold, distinctive choices that build long-term value, even as artificial intelligence and geopolitics shake the business world. In this book, you’ll learn:

• Why most strategies fail the value test―and how to know whether yours will
• How to have the debates that matter: which businesses to own, what to acquire, what to divest, when to return cash
• How to lead through uncertainty
• How to make strategy an institutional discipline, not an annual event