The EVA Challenge: Implementing Value Added Change in an Organization by Joel M. Stern, John S. Shie - ISBN: 0471405558

THE ROAD MAP TO MEASURING AND CREATING REAL VALUE - Economic Value Added – is a measure of the true financial performance of a company, and a strategy for creating shareholder wealth that aligns the interests of managers and shareholders. EVA's key ingredient is the recognition of a capital charge – the cost of capital in a company, a division, a factory or store, or a product. Hundreds of companies worldwide, including Coca-Cola, Herman Miller, Briggs & Stratton and Siemens AG, have adopted the discipline of EVA as an effective system for driving value-adding behavior in the firm, which results in superior stock market performance. Stern Stewart research, reported in FORTUNE magazine, shows that its EVA clients out perform competitors of comparable market capitalization by an average of nearly 50% of total return over five years. In The EVA Challenge, authors Stern, Shiely and Ross offer a detailed guide that: 1) Fully outlines how to implement EVA, including strategy development, organizational design, incentive compensation, acquisitions and strategic alliances, and employee training, while answering the most frequently encountered implementation problems faced by companies. 2) Contains completely new materials showing why new economy firms need EVA at least as much as old economy firms, including insights on "real options" and new economy valuations. 3) Features company-specific initiatives and case studies that will help you develop your own "Roadmap To Value Creation". Now executives around the world have a book that shows them how to implement and customize EVA at their companies.