“For nearly a decade, the actual returns of all Venture-Capital backed investments, which were promised to be at least 25%, have totaled up to zero every year. Professor William Sahlman named this paradox “capital market myopia”.”
Clayton M. Christensen/Derek von Bever, Harvard Business Review June 2014
While it still is the core expectation of Fund Investors that their investment pays off at a strong double digit level, the strategy of buying promising “targets” and driving them to even higher performance for a profitable exit has massively lost its magic power. More and more often, investment decisions disappoint the prospects – even though those were based on an in-depth fact-finding process.
Two main factors fuel this development: firstly, similar selection criteria lead investors to increasingly pursue the same targets, and this drives the initial investment price up. Secondly, none of the standard Due Diligence processes, might they be financial, operations, legal or any other, are able to identify that part of the human potential which is not only key to current performance, but especially to that of the future.
The scientifically validated Gross Corporate Happiness® Due Diligence provides transparency concerning the human potential of your target investment and, furthermore, helps to identify those key trigger points which can elevate the collective passion to reach out for future success.
Intrinsic motivation has a direct impact on future business success through its relevance for innovation, client engagement and organizational efficiency. The Gross Corporate Happiness® model has been proven to represent a holistic framework for those vital conditions that enable such intrinsic motivation to flourish.
Through a detailed evaluation of these factors in the scope of a Due Diligence, the current level of employee motivation can be identified without the need for personal employee investigation. Such a factor-map objectively reveals both the current level of motivation as well as the main “acupuncture points” relevant for activating motivation in order to boost future success.