Economic Value Added (EVA) and Value Based Management (VBM) are today's hottest management buzzwords. But written information has often been biased and clouded by the authors' hidden agendas. EVA and Value-Based Management is the first book to unflinchingly discuss the pros and cons of EVA and VBM. Covering both implementation and conceptual issues, with a strong emphasis on performance measurement, value drivers, and management compensation, it allows readers to come to their own informed conclusions.



Book Info

Provides in-depth coverage of how to implement Economic Value Added and Value-Based Management. Shows how to determine the cost of capital, use accounting adjustments to make better use of EVA, identify value drivers to guide performance improvement, and how to manage compensation to EVA. DLC: Economic value added.



From the Back Cover

Real-world guidelines for implementing EVA



Today's Most Comprehensive and Unbiased Evaluation of Value-Based Management and EVA



Economic Value Added (EVA) and Value Based Management (VBM), despite persistent claims to the contrary, are not magic wands, guaranteeing instant success. Instead, they are a set of management tools--powerful tools, to be sure, proven to work in case after case--for creating and augmenting shareholder value.



And as with any tools, users will achieve the greatest success only by learning and understanding both their strengths and weaknesses. EVA and Value Based Management is the first book to fully explain all sides of EVA and VBM, and cover the critical factors in harnessing EVA and VBM to build shareholder value. It provides in-depth coverage of the key steps in implementing EVA, including:

* Determining your cost of capital

* Using accounting adjustments to make EVA a better measure of performance

* Identifying value drivers to guide performance improvement

*Tying management compensation to EVA



The sustained creation of shareholder value doesn't happen by accident--it happens because companies plan for it. Let EVA and Value Based Management give you the clear, concise, and up-to-date information you need on EVA and VBM--what they are, why they work, and how they can work for you--and then show you how to use that information to reach your own informed conclusions.



Managers--even those from just a quarter century ago--would have a difficult time recognizing today's business climate. In the new world order, companies must prove their worth in both commercial markets (making and selling the best products and ideas) and capital markets (creating value through optimal use of all available resources, all the time). Those that fall behind in either pursuit will find the climb to market leadership difficult if not impossible.