Value-Based Management: Delivering Superior Shareholder Value(MB Executive)

With the economy and markets evolving at an ever-faster rate, fresh challenges are emerging on how to recognise, measure and manage value. This briefing considers these challenges and puts forward a blueprint for how they should be addressed from a value creation perspective. It offers a practical toolkit for achieving value-based management.

Table of Contents:
List of figures List of tables Preface Acknowledgements List of abbreviations Shareholder value and value-based management Chapter summary Introduction to the business rationale of VBM Measuring value creation Total shareholder return and economic profit A case study in delivering shareholder value – BP The three key perspectives of VBM How this book is structured The broad range of shareholder value metrics Chapter summary Metrics – the language of shareholder value Shareholder value and DCF-based metrics Case study – Unilevers adoption of TSR Shareholder value and non-DCF metrics The means of comparing companies What do all these measures tell us? How to convey value to investors Chapter summary Understanding shareholder value – the investor’s perspective How do the financial markets work? Who are these journalists, analysts and data providers? The need to demonstrate shareholder value to fund managers The importance of brokers and data providers Two important schools of share valuation Using investor relations to help deliver superior shareholder value The lessons the investment community teaches us Using value-based metrics to evaluate strategy Chapter summary A framework for the creation of shareholder value How a corporate TSR goal can help change the perception of value Using TBR to evaluate strategic plans Using economic profit to measure the value business units create Setting targets for the drivers of value Designing the measurement framework to deliver strategy Chapter summary Designing the internal performance measurement framework Economic profit as the overarching internal metric The value of the process perspective The pivotal role of the balanced scorecard Case study – balanced scorecard How activity-based costing can help Pulling it all together Aligning and embedding VBM within the business Chapter summary How to align the business towards value delivery The eight key business components The vital links between the eight business components Examples of misalignment Using checklists to measure and build alignment Key questions and design considerations by component Implementing VBM Chapter summary Starting VBM as a project initiative Ready for a change in approach? The implementation challenge Fifteen project management keys to VBM success Implementation conclusions – dos and don’ts Where is VBM heading? Chapter summary VBM companies will provide a blueprint for others TSR will have a long life Simplicity and practicality will remain vital The economic profit tool will remain popular The investor community may add complexity The balanced scorecard will have a pivotal role Managers will face a challenging paradox Appendices Discounted cash flow (DCF) techniques Calculation of the weighted average cost of capital Common adjustments in economic profit models Enterprise Value Added (EV) Examples of analyst share valuations

About the Author :
Gary Ashworth is the founder and managing director of Knowledge-Capita, a company specialising in the provision of training, coaching and consultancy on advanced business performance management techniques. He has a particular interest in insuring that the tools and techniques he implements have real and lasting business impact. He has extensive implementation experience in some of the UK and Europe's leading companies and he is regularly invited to speak at conferences and seminars. A former leader of Ernst & Young's Performance Management Service Line in the UK for some five years and previous holder of a similar role on Activity Based Management at KPMG, he has specialised in advanced business performance management approaches as a management consultant for over ten years. While at Ernst & Young, Gary directed the development and delivery of VBM training in Europe. His passion for improving approaches to managing business performance is born out of both his commitment to his profession and his wide range of practical experience prior to entering consultancy. His included working for over 12 years at senior management levels in companies such as Shell, Whitbread and Sainsbury's. He has written, and had published, many articles on performance management over recent years. A good number of these have been given international acclaim by the International Federation of Accountants (IFAC) for making "a distinguished contribution" to the development of the management accounting profession. Indeed, one article won IFAC's "First Place" award in the worldwide published article competition of that year. This is his second publication in the Financial Times Management Briefings series. He is a Fellow of the Chartered Institute of Management Accountants (and twice and Institute Prize winner), a Fellow of the Institute of Management Consultants, a Certified Management Consultant and Member of the British Institute of Management.