The EVA Challenge Implementing Value-Added Change in an Organization

by Stern, Joel M.; Shiely, John S.; Ross, Irwin

• ISBN13: 9780471405559
• ISBN10: 0471405558
• Edition: 1st
• Format: Hardcover
• Copyright: 2001-01-30
• Publisher: Wiley

Summary

The co-founder of EVA shows how to apply it in today's new economy EVA-economic valued added-is a measure of the true financial performance of a company, and a strategy for creating corporate and shareholder wealth. It is also a method of changing corporate priorities and behavior throughout a company, right down to the "shop floor." In The EVA Challenge, the authors outline how to implement EVA-from training employees to answering the most frequently encountered implementation problems faced by companies. This detailed "how-to" guide represents the second phase in the "EVA Revolution", showing executives around the world how to customize and implement EVA at their companies. Here, EVA converts learn how to work some "EVA magic" through company-specific initiatives and case study examples. Coverage includes completely new materials on "real options", leveraged stock options, and other concepts critical to corporations in both new and old economy industry sectors.

Author Biography

JOEL M. STERN has been Managing Partner of Stern Stewart &amp; Co. since its founding in 1982. He currently serves on the faculties of five graduate business schools all over the world. A widely published writer, he has been a financial policy columnist for the Sunday Times of London. A recognized authority on financial economics, corporate performance measurement, corporate valuation, and incentive compensation, Mr. Stern is a leading advocate of the concept of shareholder value. <BR> JOHN S. SHIELY is President of Briggs &amp; Stratton, one of the most successful implementers of EVA. He began his career as a tax accountant at Arthur Andersen &amp; Co., then served as a lawyer, first with the Hughes Hubbard &amp; Reed law firm, later at Allen-Bradley/Rockwell Automation, and finally joining Briggs &amp; Stratton in 1986 as general counsel. He has received a bachelor of business administration in accounting from the University of Notre Dame, a JD from Marquette University Law School, and a Master of Management degree from Northwestern University.<BR> IRWIN ROSS was retained by Joel Stern to assist in the writing of The EVA Challenge. He has written a number of books, including The Loneliest Campaign, The Image Merchants, and Shady Business. He is a former roving editor of Reader&#146;s Digest and over the years has written for a variety of other magazines, including Fortune and Harper&#146;s. Mr. Ross has also been a regular contributor to Stern Stewart's EVAngelist.

Table of Contents

The Problem	1	(14)
The Solution	15	(12)
The Need for a Winning Strategy and Organization	27	(24)
The Road Map to Value Creation	51	(20)
The Changes Wrought by EVA	71	(14)
Extending EVA to the Shop Floor	85	(22)
Getting the Message Out: Training and Communications	107	(16)
EVA and Acquisitions	123	(24)
EVA Incentives	147	(12)
How EVA Can Fail	159	(8)
New Frontiers: Real Options and Forward-Looking EVA	167	(12)
25 Questions	179	(24)
Recipe for Success	203	(6)
Epilogue: EVA and the ``New Economy,''	209	(24)
Gregory V. Milano
Acknowledgments	233	(12)
Index	245