The first module put performance at the heart of financial rationality.

But, any investment project consumes financial resources provided by capital market investors, shareholders and financial creditors. Investing in an industrial project means growing the corporate financial resources in order to grow its operational ability to produce and sell. Growing and investing are, then, one unique financial activity. Then, the question is about the contribution of growth to value creation.

This module is devoted to the relationship between growth (or investment), performance and value creation (or destruction). Starting from a very simple example, the interaction between financial and operational funds flows is clear and gives a final result which is nothing but value creation or destruction.

The example shows how performance impacts value creation. Of course, grows plays a role, but contributes to value creation if, and only if, it positively impacts performance. The module demonstrates that growth plays an “accelerator” role and consumes financial resources, but that the unique source of value creation is performance.