Value Based Management

"There is a solution to the problems created by conflicting signals and confusing priorities."

"Value is in the eyes of the beholder."

"Value is stated in the present but is always based on future expectations."

"Although the number of companies consistently outperforming their industry average is small, the few companies that do consistently outperform their industries create a great deal of value."

"Managing for value will create direct and indirect benefits for management."

"There is no single perspective that defines investor expectations."

"In theory, the objective of any decision is to create value, but in real life, things are often more complex."

"Strategy is too abstract for most people in the company. Value drivers help make the strategy real at a level of specificity that is both meaningful and actionable."

"Accounting does tell a story but not the complete story."

"Performance measurement systems must be linked to the business strategy to be truly successful in helping managers make better decisions."

"In most companies, the compensation lacks a coherent strategy and is based more on a bell-curve style grading of employees than anything else."

"Senior management must be aware of the program and sponsor it."

"If you are not aware of these traps, you may stumble into them and pay the consequences."