In the IEM Paradigm, the CEO of an IEM Enterprise — an IEM leader — has two chief concerns:

• External marketing strategy. "Think about those who are outside."

• Internal development of business processes. The most important of which is the creation and implementation of incentives for personnel. "Think about those who are inside."

By spending time and energy on two of the most important tasks, the IEM leader can have the maximum impact on the enterprise's profitability and shareholder value.

The company's success on the "outside" establishes the boundaries of the company's market potential. The company's internal success determines the percentage of this that the company takes advantage of.

In other words, the quality of the marketing strategy determines the company's largest possible market share.

And the perfection of business processes decides how much of this market share you take advantage of. Or the market share you actually occupy. The obvious effect being on profitability and shareholder value.

The IEM leader's personal efficiency is calculated by COP:

1. The time spent developing a marketing position (on the strategic level);

2. The time spent developing the incentives system (on the operational level);

3. Divide the sum of these times by the total time sent on the clock.

Remember: this is only localized, personal efficiency and not professional ability; competency is not considered in the formula. The COP shows how to get the most out of the current CEO, not how to turn him into a marketing genius.

None the less, there is massive potential for increasing profitability here.

P.S. Let's test this hypothesis on real data.

The COP for Jobs, Sloan or Toyota will be over 50%.

For the typical CEO, closer to zero.

This perfectly summarizes the final results of actual companies.