|
Economic Value/Shareholder Value Consulting
Determining Economic Value Formula
The basic Economic Value/Shareholder Value formula can have over 200
adjustments. Balancing simplicity with a formula that makes sense and will
drive shareholder value takes a great deal of experience and insight.
Changing Compensation to Support Economic Value
Simply telling your executives and managers about the new formula will result
in failure. Compensation must be changed for executive and managers'
compensation so that it supports economic value. If the formula is not flexible
enough, certain events will make the results a disaster. Everyone must
understand how they can influence economic value and thus their compensation.
Improving Economic Value
Some consultants feel that the only thing you need to do is define Economic
Value/Shareholder Value formula and change the compensation formula. This
should be rather minor portion of the consulting engagement. What
organizations executives and managers need to know is how to improve their
economic value. Basic comments like reduce inventory and receivables are
of limited value unless the consultants can show how to achieve these
objectives.
Consulting Engagement on Economic Value
- integrate economic value with your strategy
- review goals you expect to achieve through economic value
- develop economic value implementation plan
- identify divisions to implement
- change compensation plans
- monitor initial results
- perform periodic check ups of your progress
Call Richard Malekian at 972-980-7407 to find out how we can help you reach your goals and give you peace of mind
| Economic Value Added/Economic Profit
Shareholder Value/Market Value |
|
Phone: 972.980.7407 email: john.antos@valuecreationgroup.com
Value Creation Group, Inc.
7820 Scotia Dr. #2000
Dallas, TX 75248
|
|