Part One of Three

Valuations and Market Capitalization

This week, I will complete my twelfth Decoding the Earnings Call (DTEC) session for Q2 2025, working with a diverse portfolio of clients across industries, including specialty chemicals, pharmaceuticals, high tech, professional services, and more.

The  DTEC workshop is a business acumen masterclass designed to help learners apply the skills they’ve gained in our simulation-centric training programs. A typical session includes:

• An overview of what Wall Street is saying about the company
• An analysis of how executive leaders are delivering the message and results for the quarter
• A deep dive into the “story behind the numbers” by letting the financials speak for themselves

Participants learn to listen for strategic clues, spot execution strengths or gaps, and connect market performance to business decisions.

Some of the fastest-growing opportunities in the consumer products industry are emerging from category reinvention. Take feminine care, for example: a category once viewed as a functional necessity is now being redefined around wellness, sustainability, and inclusivity. Reusable and eco-friendly solutions, lifestyle-focused branding, and outreach to underserved demographics are opening entirely new revenue streams.

Similar reinvention is happening across plant-based foods, functional beverages, and sustainable home care products. Companies that monitor these evolving spaces and invest in innovation pipelines will be well-positioned to capture growth, while those that ignore them risk being left behind.

It’s the new reality of work: global, hybrid teams spread across time zones, working together to achieve goals that ultimately drive their companies’ success.

I recently facilitated a virtual, global business acumen simulation workshop centered on critical thinking. One of the most interesting outcomes was a rich discussion about how AI is supporting the flow of work in hybrid environments and, more importantly, how it can help teams think more critically.

With great change comes great challenges. One of the biggest challenges facing leaders and organizations today is how to create a culture of critical business thinking. I define critical business thinking as the ability to analyze and evaluate information objectively, making sound decisions and solving problems effectively within a business context. It requires logic, reasoning, and the discipline to assess situations, identify solutions, and mitigate risks. This type of thinking is essential for navigating the complexities of today’s business world, fostering innovation, and achieving sustainable success that drives shareholder value.

As AI tools become more prevalent, their role in enabling and enhancing critical business thinking is becoming clear. Here are five ways AI can help hybrid, global teams sharpen this vital skill:

Over the next few weeks, publicly traded companies will begin releasing their Q2 earnings reports and hosting earnings calls with analysts and shareholders. And so, the cycle begins again…

By “cycle,” I’m referring to the awkward, uncomfortable dance that plays out in businesses everywhere: a manager, without real business acumen, reads a few lines from the press release or earnings deck, pulls together a half-baked summary, and tries to sound like a visionary leader by “sharing insights” with their team.

It’s not pretty.

The problem comes when someone on the team, often a high-potential future leader, asks a question. Something like:

• “How does the decline in free cash flow affect our department budget?”
• “Why is EBITDA growing while revenue is flat?”
• “How do these expense cuts help the business?”

If you freeze, change the subject, or throw out buzzwords without substance, you’ve missed a golden leadership opportunity. And worse, you’ve exposed a knowledge gap that your team can see from a mile away.

Over the first half of the year, I’ve had the opportunity to listen to more than 300 Board of Directors presentations delivered by participants in our business acumen simulations. These presentations are the culmination of the learning journey: each team steps into the role of senior leadership, presenting their strategy, goals, accomplishments, and future guidance for their simulated company.

Nearly every team uses or slightly adapts the templates we provide, and the resulting presentations are often thoughtful, structured, and insightful.

As I was reviewing a few over the long weekend, one in particular stood out. It was from a team that participated in a pharmaceutical simulation back in March. The title of their final presentation was: