BARTLEY J. MADDEN bartmadden@yahoo.com

BARTLEY J MADDEN cofounded Callard Madden & Associates where his early work led to the CFROI valuation model.  He is currently an independent researcher focused on knowledge building and wealth creation as opposite sides of the same coin, and restructuring the FDA’s approval process for new drugs.

Madden attended California Polytechnic State University in San Luis Obispo as an engineering student and was a member of Cal Poly’s 1961 collegiate championship boxing team.  From 1962 to 1965, he studied at the University of Southern California and graduated with a BS in mechanical engineering.  Madden then spent time in the U.S. Army involved with classified weapons development/testing.  After his Army service, he earned an MBA at UC Berkeley in 1969.

In 1970, Madden partnered with Charles G. Callard and started Callard Madden & Associates where his early research resulted in the CFROI (cash-flow-return-on-investment) valuation model widely used today by investment management firms.  The CFROI model is unique in using a total systems approach whereby the assignment of a discount rate for valuing a firm is dependent upon the procedures used for forecasting future profits. CFROI Valuation: A Total System Approach to Valuing the Firm was published in 1999.

In 1984, he joined Harbor Capital Advisors as a Senior VP and portfolio manager.  In 1992, he became a partner at HOLT Value Associates and continued his research on connecting corporate performance to levels and changes in stock prices over time and advancing a global database for investment decision making.  His proposed Life-Cycle Reviews addresses the need for boards of directors and management to clearly explain how major corporate decisions (e.g., reinvestment outlays for each of a firm’s business units) should result in long-term value creation. 

HOLT was acquired by Credit Suisse in 2002 and a year later Madden retired as a managing director at Credit Suisse/HOLT to do independent research.  He has had a long-term interest in the deeper issues concerning how we know what we think we know which led to his book Reconstructing Your Worldview: The Four Core Beliefs You Need to Solve Complex Business Problems. Click here for an academic review of the book.

Through a series of journal articles and a book, Free To Choose Medicine: Better Drugs, Sooner at Lower Cost, Madden has fine-tuned the details of a practical plan to bring consumer choice and competition to the FDA. His Free To Choose Medicine proposal to enable patients, advised by their doctors, to access not-yet-FDA-approved drugs has been implemented in Japan, click here.

Click here for details on his latest book, Value Creation Thinking.

One way that he breaks the grind of research and writing is by driving his really cool, award-winning 1967 Corvette.