McKinsey 2006 Guidance Report

In 2006, McKinsey & Co. issued a report on Guidance.  They concluded that issuing guidance had no impact on liquidity or shareholder value creation.  We agree…. to an extent.

We agree that merely providing guidance does not add value.  The value creation is in explaining the company performance against said guidance.  Therein, lies the value creation.

That said, there are some good points made in this short report.  Its a good read from one of the most reputable firms in the world.  Enjoy the read.


Resource Login or Subscribe to download this resource.