【正文】 s “Top 500 Private Companies” ? “Wrote the book” on workforce management, The Talent Solution: Aligning Strategy and People to Achieve Extraordinary Results. ? Leading executive pensation consulting firm 0%5%10%15%20%25%30%F 10 0 F 10 0 20 0 F 20 0 30 0 F 30 0 40 0 F 40 0 50 0Percent of “Fortune 500” Companies Using Hewitt’s Executive Compensation Consulting Services 1979 Hewitt’s VBM initiative launched within pensation practice 1995 2023 Integrated Value Alignment Program implementation at client panies ?Executive and Broad Based Compensation ?Leadership training ?Performance Management ?Employee Communications ?Staffing and Talent Management ACA publications, Shareholder Value Incentives and Creating Equity Excitement, 1995, Unleashing Trapped Value with Business Unit Incentives, 1998 VBM Conference Presentations Client Teleconference sponsored by Hewitt and HOLT Value Associates, Oct 5th, 2023 “Beating the Fade: Impact of Employee Branding on Business Value” VBM for Financial Institutions, London, 2023 VBM Linking Strategic Planning, Performance Measurement and Compensation, Executive Programs Course at Kellogg Graduate School of Management, 1998 to present. Global Finance Conference, 2023 VBM Employee Education Program Creating Value Working to Win, a video based VBM and EVA training program featuring Abbie Smith, University of Chicago, Graduate School of Business Research Breakthrough Wachovia Bank, Linking Employee Engagement to Business Results 1980 1990 VBM Compensation Client Projectsexamples ?Van Dorn ?Mattel ?Pacific Telesis (w/ Marakon) ?US West Relative TRS Long Term Incentive plan (first of its kind in 1983) Research on Pay Performance relationship and value metrics。o Paulo Santo Domingo Tampa The Woodlands Toronto Vancouver Washington, . (Consulting) Washington, . (Research) Los Angeles Mexico City McLean Milwaukee Minneapolis Montr233。nePoulenc Rorer Inc. ? Vertically linked our engagement model to shareholder value creation to offer an allemployee business education course entitled “Creating Value: Working to Win,” which reflects value based management concepts. Our Standing Experience in Developing Global Human Resource Applications Expertise in Total Compensation Integrating Shareholder Value Creation Approaches Knowledge of Employee Engagement and Employer of Choice Programs Utilization of Tools and Technology In Delivering the New Programs ? Good understanding of what it takes to be an Employer of Choice from our work with: ? Fortune Magazine39。Value Based Management Hewitt Associates August 2023 Creating Shareholder Value is Gaining Importance Due to a Variety of Factors Regional/Capital Markets Perspective Greater Focus on Shareholder Value Integration of Organizational Structures Deregulation Privatization Integration of Capital Markets WTO Capital Market Investment Objectives Mergers and Acquisitions Globalization Corporate Specific/Top Management Perspective Traditional accounting measures are not reliably linked to shareholder value Growing recognition of the need to align management actions and rewards to longterm value creation Increasing publicity of shareholder value creation rankings (., FT. Fortune) Possibility of takeover by investors seeking “under” managed assets “ Buy in” by Corporate leaders What is Value Based Management ? ? A consistent framework that aligns management action and strategic objectives with shareholder value creation ? The primary goal of value based management is to build a corporate mindset in which management decision making and execution are focused on the creation of shareholder value VBM Enables ? A consistent approach to management planning, resource allocation, performance assessment, and munication ? Management to focus and prioritize on “value” ? Alignment of management action with strategic objectives and shareholder value VBM is Not ? Solely a question of choosing a performance metric ? Limited to implementation within the corporate planning and finance division ? Easy to implement HR Alignment Facilitates the Success of VBM Implementation % % % % % % 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 5year Average % TSR CFROI Sales Growth Companies aligned to VBM objectives Companies not aligned ? VBM measures used for planning and pensation ? VBM goal setting ? Performance system ? Training ? Business unit and corporate incentives Empirical Results Show a Link Between Organizational Implementation and Value Creation Companies with business unit specific longterm incentives tied to shareholder value creation outperform panies without these incentives Companies with Corporate and Business unit incentives Companies with solely Corporate VBM incentives 3year TSR% 20 21 22 23 24 25 26 19972023 199497 199194 ValueCreating Behaviors, Priorities, Decisions, and Measurement Linking HR to VBM VBMAligned Management Processes Corporate Structure Alignment Corporate Culture VBMAlignment Desired ValueCreating Behaviors and Competencies Employment Relationship Personal Needs, Goals, and Strategies Individual Priorities and Skills HR Policies and Management Personal Vision Organization People Requirements “ Ownership” Culture ? Decisionmaking ? Priorities ? Reports An HR Perspective on Value Management Investor Scorecard Total Shareholder Return (TSR) Market Value Added (MVA) Management Track Record Growth / Return Profile Business Strate