Posts Tagged ‘Value Based Management’

One of the most creative ways to increase the value of assets is to spend next to nothing and generate more sales.  EVA goes up if margin is increased and/or if velocity goes up - sales/assets.  Sears has a huge amount of underutlized real estate, whether the stores have been shuttered and waiting for new tenants and it has space in postive cash flow, but underutilized active Kmart or Sears stores.  Now that the Feds'

Fortuna Advisors' Gregory V Milano and Steven C. Treadwell argue (here) that all M&A is not created alike, and, in fact, when part of a value focused strategic planning process that becomes a competency M&A works very well.  Much of the time Wall Street analysts dismiss

Wall Street has it wrong when looking at the "Quality of Management". Most investors and analysts believe that "capability" - the degree to which managers have the ability to do what they set their minds to - is the dominant driver of quality.  We think that even when they are right about the capability of the people, capable managers with perverse explicit and implicit incentives may apply their considerable skills to undermine value creation - even without intending to.  For us how well the

And this from Sears today: Sears Holdings Corporation announced that for fourth quarter of 2010, it expects net income to be between $385-$465 million or between $3.36-$4.06 per diluted share (EPS). For fiscal 2010, it expects net income to be between $190-$270 million or between $1.61-$2.29 EPS, which also excludes the potential fourth quarter impact, if any, related to store closings and impairment charges, restructuring activities including severance, and mark-to-market gains and losses on hedge transactions executed by

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.

Joel Stern, CEO of Stern Stewart & Co., suggests on its web site that the purpose of Stern Stewart and the EVA value based management system is "to make important ideas in financial policy and strategy workable for boards, senior management, and to promote the training and development of all employees so they can acquire an understanding of what it means to create shareholder value.  Nothing is more important in any firm