EVA and Value-Based
Management
A Practical Guide to
Implemantation
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.
EVA and Value-Based
Management is the first book to frankly and comprehensively discuss the pros and cons of
Economic Value Added (EVA) and Value-Based Management (VBM) proven in numerous cases to
increase shareholder value while strengthening organizations in which they are
successfully implemented. Written by award-winning INSEAD professor S. David Young and
leading management expert Stephen F. O'Byrne, this book covers both conceptual and
implementation issues, placing a strong emphasis on performance measurement, value
drivers, and management compensation.
Look to EVA and Value-Based
Management for:
A clear explanation of the
concepts behind EVA and VBM
A highly practical guide to
implementing EVA for performance measurement and incentive compensation, with dozens of
real-world examples
An honest assessment of the
pros and cons of EVA and competing value-based approaches
A frank discussion of the
company characteristics that help or hinder successful EVA implementation, helping you to
decide whether EVA and VBM are right for your organization
Many prominent corporate
leaders have long proclaimed and, even more significant, put to the real-world test
the benefits of EVA. In EVA and Value-Based Management, management experts S. David
Young and Stephen F. O'Byrne define and discuss EVA, then present a simple,
easy-to-understand approach for determining how it will succeed in your organization. The
result is an all-inclusive, no-holds-barred overview of value-based management and EVA and
todays most valuable, practical guidebook for implementing a highly effective,
performance-driven management program.
About the Authors
S. David Young, Ph.D., is a
professor at INSEAD, one of the world's leading graduate business schools. A consultant on
EVA and value-based management for several American, European, and Asian companies, Dr.
Young's research has appeared in many academic and professional journals. He can be
reached at david.young@insead.fr.
Stephen F. O'Byrne is
president and co-founder of Shareholder Value Advisors Inc., a consulting firm that helps
companies increase shareholder value through better performance measurement, incentive
compensation, and valuation analysis. O'Byrne was formerly senior vice president at Stern
Stewart & Co., and his articles have appeared in a wide variety of journals. He can be
reached at sobyrne@valueadvisors.com.
492 pages