Driving Ongoing Profitability With EVA at Briggs and Stratton
John S. Shiely continues to expand a turnaround at Briggs & Stratton Corp. that was begun by integrating a business philosophy based on Economic Value Added (EVA). The essential principle of EVA analysis is that a company only makes economic profit if the company earns more than the cost of its capital. The results: EVA has helped the company achieve an impressive record of producing economic profits. Briggs & Stratton has made money every year since the late 1980s.
Deere (DE) Investor Relations Touts Its Use of Shareholder Value Added (SVA)
Today at the Bank of America Securities Merrill Lynch Industrials Conference Marie Z. Ziegler, VP of Investor Relations for Deere (DE, $52.40) made three observations about her company: 1. Favorable macroeconomic tailwinds in Deere's agriculutural businesses. DE is getting popular in places where incomes are relatively low but growing fast. And as populations earn more, they tend to upgrade their diets. "If you are going to eat chicken, it takes four times the amount of grains to produce an equivalent amount
ValueAligned Companies Go Green Without Altering Overarching Objective of Managing for Value
Best Buy: An Emerging Green Giant By Marc Gunther Published December 03, 2009 By now, everyone paying attention to the greening of corporate America knows about Walmart's sweeping sustainability programs. Big-box rival Best Buy has not been nearly as visible about its efforts to become more environmentally and socially responsible. But I recently visited Best Buy's headquarters in Richfield, Minnesota, on assignment for FORTUNE, and came away impressed with what the $40-billion a year company
Where have all the EVA-ngelists gone? Less than 10% of US companies manage for value.
Very interesting that I asked a group of current and ex-EVA consultants whether Value-based Management was still relevant, or I think I said, "does anybody care about EVA and VBM anymore? The one answer I got was from a Stern Stewart leader in India. Yes it's really relevant, but it's difficult to describe and differentiate from a host of other management practices. But most relevant I think is that at least in India managing for value is alive and kicking if
WHAT`S NEXT FOR CHINESE ENTERPRISES? EVA, OF COURSE
In WHAT`S NEXT FOR CHINESE ENTERPRISES? Terry Qin, Vice President of Stern Stewart & Co. located in Beijing, writes that as many of China's largest enterprises gains influence in capital and traded goods markets, management (and the state, it is still ruled by the Communist Party after all) realizes that "they need a world-class, more complete measure of performance."
