【正文】 (through ValueBased Management) ?LEK ?EVA ? / MVA ? ?Stern Stewart ?AT Kearney ?Accounting firms ?BCG ?Holt ?BCG ?Cash Value Added* (CVA) ?Cash Flow Return on Investment (CFROI) Framework Modified Accounting Business Metrics 17 CorporatePerformanceMeasurement bc Corporate Performance Measurement LON * only backward looking The modified accounting business metrics, which include EP, enable relatively accurate levels of corporate performance measurement at lower levels of decision making in the anisation Accuracy as Measure of Corporate Performance Level of Decision Making High Low Low High MVA? Modified Accounting Business Metrics TSR* ROE/ROA Fundamental Business Drivers EP/EVA?/CFROI Role in Organisation Framework 18 CorporatePerformanceMeasurement bc Corporate Performance Measurement LON * Adjusted for all stock splits and assuming all dividends reinvested While TSR calculates return to shareholders for publiclylisted panies, BCG?s TBR calculation estimates equivalent returns for privatelyheld firms Total Shareholder Return (TSR) in CAGR Format Market value of share at end of period * Market value of share at beginning of period = Total Business Return (TBR) = Estimated market value of shares of privatelyheld pany at end of period* number of years 1 number of years 1 1 1 Estimated market value of shares of privatelyheld pany at beginning of period* Framework Output Measures 19 CorporatePerformanceMeasurement bc Corporate Performance Measurement LON Bain?s client stock performance slide is calculated using TSR, which is used to measure the shareholder value created B a i n c l i e n t sS P 5 0 0?0 ?1 ?2 ?3 ?4 ?5 ?6 ?7 ?8 ?9 ?0 ?1 ?2 ?3 ?4 ?5 ?6 ?7 ?8N o t e : M e t h o d o l o g y a n d d a t a a t t e s t e d t o b y P r i c e W a t e r h o u s e L L P t h r o u g h D e c e m b e r 1 9 9 805001 , 0 0 01 , 5 0 02 , 0 0 02 , 5 0 03 , 0 0 03 , 5 0 0Point Change in Indices (1980=0)Framework Output Measures 20 CorporatePerformanceMeasurement bc Corporate Performance Measurement LON Agenda ? Executive Summary ? Objectives ? Background ? Performance Measurement Framework ? Market Value Added (MVA) ? Economic Profit (EP) ? Cash Flow Return on Investment (CFROI) ? Exercises –MVA –Economic Profit ? Case Study Diageo 21 CorporatePerformanceMeasurement bc Corporate Performance Measurement LON 020406080100%Market Value Added (MVA) Invested Capital Goal of Managers should always be to create more shareholder value, or maximise MVA Total Market Value of Firm (includes all debt and equity) Bain?s focus has always been to help the management of the firm to maximise shareholder value, which is equivalent to maximising MVA Market Value Added Definition (1 of 2) 22 CorporatePerformanceMeasurement bc Corporate Performance Measurement LON MVAI nv estedCa pi t alST NIBL*Ne tAsse t sEx cessCa shWorki ngC api talR equ ireme ntsNe t Fix edAssets (nodi stin ct io nbe t w ee nt an gi bl es andin t an gi bl es)S hor t T ermDe btLongT ermDe btS hareho ld ers39。 1 2 5 B Banks, integrated oil and drugs were the UK sectors with the highest market value added Source: Stern Stewart, Sunday Times Sector Market Value Added (Sept 98) Market Value Added UK Sector Performance 10 Best 33 CorporatePerformanceMeasurement bc Corporate Performance Measurement LON O i le x p l o r a t i o nC h e m i c a l sM o t o r E n g i n e e r i n gH o u s e h o l dG o o d s / T e x t i l e sW a t e rH e a l t h c a r eM i n i n gD i s t r i b u t o r sP r i n t a n d P a c k a g i n gC o n s t r u c t i o n4 . 6 4 . 0 3 . 52 . 7 2 . 4 2 . 2 1 . 8 1 . 61 . 1 0 . 902550751 0 01 2 5 Distributors, print and packaging and construction had the lowest market value added in the UK Source: Stern Stewart, Sunday Times Sector Market Value Added (Sept 98) Market Value Added UK Sector Performance 10 Worst 34 CorporatePerformanceMeasurement bc Corporate Performance Measurement LON S h e l lG l a x o W e l l c o m eL l o y d s T S BS m i t h K l i n eB e e c h a mU n i l e v e rBPH S B CZ e n e c aD i a g e oB a r c l a y s6 9 . 54 1 . 63 0 . 6 3 0 . 02 8 . 42 3 . 41 8 . 41 5 . 31 4 . 31 3 . 50204060163。 of market value added is the largest in the UK Source: Stern Stewart, Sunday Times Company Market Value Added (Sept 98) 1998 EVA? (163。 0 . 5 B British Steel?s 163。B) () () () () () () () () () () Market Value Added UK Company Performance 10 Worst 36 CorporatePerformanceMeasurement bc Corporate Performance Measurement LON Agenda ? Executive Summary ? Objectives ? Background ? Performance Measurement Framework ? Market Value Added (MVA) ? Economic Profit (EP) ? Cash Flow Return on Investment (CFROI) ? Exercises –MVA –Economic Profit ? Case Study Diageo 37 CorporatePerformanceMeasurement bc Corporate Performance Measurement LON ? Definition ? Advantages/Disadvantages ? Framework ? Use in Strategy Work Economic Profit Agenda 38 CorporatePerformanceMeasurement bc Corporate Performance Measurement LON Definition (1 of 2) Note: Economic Profit (EP) =Operating Profit (Cost of Capital * Amount of Equity Capital Invested) Re ve n u e sO p e r a t in gCo sts O ve r h e a d sPr o f itBe f o r eT a xT a x Pr o f itAf te rT a xEq u ityCa p ita lCh a