Corporate Performance Measurement（英文版）(ppt 106页)

Corporate Performance Measurement（英文版）目录：
一、Executive Summary
二、Objectives
三、Background
四、Performance Measurement Framework
五、Market Value Added (MVA)
六、Economic Profit (EP)
七、Cash Flow Return on Investment (CFROI)
八、Exercises
九、Case Study - Diageo

Corporate Performance Measurement（英文版）内容提要：
Corporate performance evaluation has evolved from the 1960s focus on ROE to the current variations of economic profit that measure impact on shareholder value
many firms have devised their own variations of economic profit
Stern Stewart’s Economic Value Added (EVA)TM   is best known of these measures
Holt/BCG’s Cash Flow Return on Investment (CFROI) is a similar concept presented in % return format
Both ROE and EP are business metrics, tools used to measure the performance of the business
separate from fundamental business drivers, the actual factors that influence shareholder value, and output measures the backward-looking records of overall company performance
……

Marakon has made economic profit (EP) the central focus of the ‘program’ they apply to every case
To illustrate the role of corporate performance measures and resource allocation to strategy work, an examination of Marakon’s “program” is useful
Marakon applies the following program, which can take several years to complete, to all of its clients:
assess the economic profit of all customer segments and product lines
compare company performance to industry performance
investigate three or more strategies for each business every planning cycle
shift resource allocation from economically unprofitable products/customers to economically profitable
leads to yield loss for Marakon and clients since additional scenarios frequently evaluated
……

EP is used to evaluate manager performance because the change in MVA over a period of time is measured
Goal of company’s managers should always be to maximise MVA
When managers make any investment decisions, if the project is:
value-creating NPV >0 MVA increases
value-destroying NPV <0 MVA decreases
Reason that EP is the focus of most attention is because MVA is a stock or wealth measure, so MVA will show how much value has been added at that point in time
EP measures the amount of value added over a period of time, which is far more useful when measuring manager performance.