Robert Goizueta : separating the sheeps from the goats

You need a way to separate good projects (the sheep) from the goats. Here’s how the great Robert C.Goizueta created enormous wealth at Coca-Cola by this vital separation:

• You make a simple chart.
• Across the top you put your businesses, products, services or whatever
• Then you put their financial characteristics on the other axis:
• margins
• returns
• cash flow reliability
• capital requirements.
• Finally compare the businesses, etc.
• Keep and nurture the superior businesses
• Drop the others.