Measures of the Future

While CEOs realize they can count on financial executives to know the value of the company’s tangible assets, they may not be so sure that their CFO has a firm grasp on how the company stacks up when it comes to intellectual capital, new product effectiveness or relationships with customers. If you haven’t made any effort in measuring the value of these assets, maybe it’s … [ Read more ]

What Becomes a Manager Most?

The number one reason people leave a job is because of their dissatisfying relationship with their direct supervisor/manager. What do you need to do be exceptional?

Erik Brynjolfsson

For the past 15 years, Erik Brynjolfsson, the George and Sandi Schussel Professor of Management at the Massachusetts Institute of Technology’s Sloan School of Management, has been studying the economic impact of corporate IT investment and, more recently, the strategic drivers behind E-business. Co-director of the Center for eBusiness@MIT, co-editor of the Ecommerce Research Forum, and co-editor of Strategies For e-Business Success (Jossey-Bass, 2001).

Not All Customers Are Created Equal

You may think a buck is a buck, a Euro is a Euro, no matter who pays you. But not all customers are of equal value. In this Harvard Business Review excerpt, Werner Reinartz and V. Kumar say the link between customer loyalty and profits is weak. Here is what you can do about it.

Eric Olsen

A VBM initiative should pursue three objectives, according to Olsen. First, it should work to increase returns from existing assets. Second, it needs to help senior management make incremental investments that have rates of return above the company’s cost of capital. And third, it should free up cash and return it to investors when profitable investments are not available.

Measures that do not incorporate all three … [ Read more ]

The Model 2 Organization: Making Your Company Safe for Zealots

Centralized management still confounds corporations that need to be fast and flexible. There’s a way to move from Taylorism to Welchism – but it means rejecting command-and-control.

Editor’s Note: offers an analysis of four basic managment models and the environments appropriate for each.

Gary Hirshberg

Gary Hirshberg is president and CEO of Stonyfield Farm, the nation’s fastest growing yogurt company, and an accomplished writer and keynote speaker on corporate social and environmental responsibility.

Making the Metric Work

CEOs increasingly look to financial managers to implement Economic Value Added (EVA) to increase shareholder value. EVA can be challenging to implement, but far from impossible – as long as executive compensation is tied in.

Edison in the Boardroom: How Leading Companies Realize Value from Their Intellectual Assets

“Edison in the Boardroom offers the reader something that is hard to find-a clear perspective and roadmap that shows how patent assets fit on the corporate landscape. The authors develop a unique five-level hierarchy of asset management and take us on a seamless trip from start to finish. Along the way, there are candid revelations of viewpoints and techniques, punctuated by anecdotes, practical examples and … [ Read more ]

Management development and managers’ use of their time

This article discusses the nature and the reality of managerial jobs and how managers spend their time.

The findings of the study suggest that in general, significant improvements in the use of managerial time can be obtained by addressing the following issues at work:
– the management of meetings;
– the management of paper work/desk work activities;
– delegation and supervision;
– … [ Read more ]

Jay Abraham

Jay Abraham, marketing guru, is interviewed by a guru of a different sort, Tony Robbins.

Seduced by Serial Ideologies

Fashion, it must be said, does not thrive just on the runways of Paris. It’s alive and well, for better or worse, in the boardrooms, executive suites and business think tanks of the world.

Robert G. Eccles

The earnings game is bizarre because it consumes a huge amount of time and energy in managing earnings rather than managing the company.

The presumption is that value revolves around one number: earnings. But even if that number is accurate, it is only a very small part of the story. What’s strange is that there is strong agreement between management and the market that it’s crucial … [ Read more ]

George Soros

if you don’t know who he is, you should…

G. Bennett Stewart III

The problem with the Balanced Scorecard is it doesn’t give you an actual score of how your company is doing. For instance, if you were playing basketball, the Balanced Scorecard could tell you the number of rebounds, turnovers, blocked shots and a lot of other statistics about the game, all of which help to some extent, but it couldn’t tell you the score. EVA provides … [ Read more ]

The Missing Link

Measures of value creation are effective at getting managers and executives to focus on both the balance sheet and the P&L statement. The trick is to make a value measure relevant to all employees so they manage the company’s capital as if it were their own.

The Devil’s in the Details

No single set of EVA metrics works well for all companies. The metrics you need depend on your organization’s specific strategies for increasing value.

The Value-Based Management Commitment

Improving and sustaining performance through value-based management requires fundamental cultural changes from top to bottom of the organization. Abandoning the traditional budget and the earnings game are prerequisites.