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Welcome to ROG: Managing under Uncertainty

A revolution is sweeping the worlds of business, finance and strategy as companies and investors attempt to make sense of uncertainty. With technologies changing, competition increasing and product cycles getting shorter, managers are faced with tough strategic choices whose outcomes will determine the success or failure of the enterprise.

In such an uncertain environment, the traditional tools of capital budgeting and corporate valuation are no longer adequate. Faced with uncertain decisions, managers intuitively know they have the option to defer, stage, abandon or expand a project, or even switch funds to a more profitable opportunity, yet the traditional framework of capital budgeting fails to take this managerial flexibility into account.

But a new way of thinking has emerged. Based on option valuation techniques proven in the financial markets, Real Options Valuation (ROV) is revolutionizing corporate strategy and bridging the gap between finance and strategic planning. Just as an option gives its owner the right - but not the obligation - to take a particular course of action at some time in the future, flexibility embedded in capital investment projects and company strategies allows managers to take a staged approach to corporate strategy and react to changes in the business environment, so they can limit downside losses while fully capitalizing on upside potential opportunities.

At the Real Options Group we are committed to help managers embrace and capitalize on uncertainty by understanding how a dynamic and contingent approach to future investment decisions can enhance shareholder value in an uncertain world. We can help management navigate through the uncertainties, complexities and contingencies of the sequential decision-making process with a clear but flexible plan of action based on cutting-edge methodologies we have pioneered. Our goal is to provide comprehensive real options-based enterprise package solutions to assist our clients both in creating value through their internal operations on Main Street as well as realizing value on Wall Street. Our main service offerings include management consulting (project design and valuation, capital allocation & product portfolio management, corporate strategy and valuation), corporate finance advisory (IPO and M&A valuation, private fund raising and fairness opinions), equity research and market analysis, and online services, exec training and conferences. Our associates have particular industry expertise in the biotechnology/pharmaceuticals, telecom/media, high tech/internet, energy & natural resources sectors. Our clients and collaborators include some of the best-in-class companies worldwide.