Value Based Management（英文PPT 40頁(yè)）

1、hewittvalue based managementhewitt associates august 2001creating shareholder value is gaining importance due to a variety of factorsregional/capital markets perspectivegreater focus onshareholder valueintegration of organizationalstructuresderegulationprivatizationintegration of capital marketswto

2、capital marketinvestment objectivesmergers andacquisitionsglobalizationcorporate specific/topmanagement perspectivetraditional accounting measures are not reliably linked toshareholder valuegrowing recognition of the need to align management actions and rewards to long-term value creationincreasing

3、publicity ofshareholder value creationrankings (e.g., ft. fortune)possibility of takeoverby investors seeking“under” managed assets“buy in” by corporate leaderswhat is value based management ? a consistent framework that aligns management action and strategic objectives with shareholder value creati

4、on 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 communication ma

5、nagement to focus and prioritize on “value” alignment of management action with strategic objectives and shareholder valuevbm is not solely a question of choosing a performance metric limited to implementation within the corporate planning and finance division easy to implementhr alignment facilitat

6、es the success of vbm implementation16.6%6.7%8.6%7.1%10.0%3.0%0%2%4%6%8%10%12%14%16%18%5-year average %tsrcfroisales growthcompanies aligned to vbm objectivescompanies not aligned vbm measures used for planning and compensation vbm goal setting performance system training business unit and corporate

7、 incentivesempirical results show a link between organizational implementation and value creationcompanies with business unit specific long-term incentives tied to shareholder value creation outperform companies without these incentivescompanies with corporateand business unit incentivescompanies wi

8、th solely corporate vbm incentives3-year tsr%23.320.522.825.522.525.4202122232425261997-20001994-971991-94value-creating behaviors, priorities, decisions, and measurementlinking hr to vbmvbm-alignedmanagement processescorporate structurealignmentcorporate culturevbm-alignmentdesired value-creating b

9、ehaviors and competenciesemployment relationshippersonal needs,goals, and strategiesindividual prioritiesand skillshr policiesand managementpersonal visionorganizationpeople requirements“ownership” culture decision-making priorities reportsan hr perspective on value managementinvestor scorecardtotal

10、 shareholder return (tsr)market value added (mva)management track recordgrowth / return profilebusiness strategy investments in future growtheconomic value improvementintellectual capitalinvestor expectations of future earnings & riskfinancial performance objectivesclient satisfaction indicators

11、employee engagement & productivityproduct offering & innovationpeople strategyshort term indicators (illustrative)decision process and organizational structureperformance management and incentivesinternal resource allocationstaffing and recruitmentvalues and culturecommunicationstraininginte

12、rnal process“alignment tovalue”internalscorecardlong term goals and performance targets anchored to investor expectationswhat is value in the business context?competing perspectives:bridging the gap measurement of value measurement of value is not a neutral act - it is a choice which signifies manag

13、ements priorities and dictates the organizations view of itself selecting a performance measure aligned with enhancement of value influences not only that measure but also all those measures not selected measurement of value drivers of shareholder value the two most fundamental drivers of share hold

14、er value : managing shareholder valuethe balance of competing objectives : growth-returns trade-offfor most firms, the relationship between growth in capital employed and percent change in roi is initially negative. correlation is positive over longer time horizons.growth in capitalreturn on capital

15、profit marginsasset turnovershareholder valuehierarchy of tradeoffsdimensions of valueshareholder value creationperformance measures and targets are customized to capture short term tradeoffs in view of long term valueshort-termtradeoffslong-term investmentscapital investment for long term growth po

16、tentialshort-term returns:returns in excess of cost of capital- rona ep spread (%) cfroi roeshort-term growth: net income growth cash flow growth sales growthdividendsfree cash flowindustry factors:not company specific macroeconomic factors demographics commodity prices, etcinternal - company specif

17、ic(customized metrics including ep, cva, cfroi, tbr, and other value drivers)external - industry specificshort-termtradeoffswhat metrics do we subscribe to?shareholder value enhancement imperatives identification of value centers within the organization evaluation of strategic alternatives (harvesti

18、ng, divesting, acquisitions, market entry, etc.) based on value creation integration of management systems (strategic planning, budgeting, resource allocation and performance measurement) based on value creation implementation of mis to facilitate operational decision making, periodic reporting and

19、monitoring of value creation rewards aligned with “value based” performance generic value driver treecommitmentcompetenciescapabilitiesimplementation through peoplefinancial resultsoperational outcomesstructures, processes, and experiences that enable your organization to secure competitive advantag

20、ecapabilitiesperformance behaviors that are observable, measurable, and critical to successful performancecompetenciesfactors that facilitate employee commitment to the organizationcommitmentbalanced measuresexamplefinancial margins cost reduction project profitability client client satisfaction per

21、ceived value of service operational on-time completion rates bidding success rates employee employee survey results turnover rates evapricing fixed cost contracts cost plus contracts currency exposuremarket position competitive differentiation perceived value of service customer relationships sales

22、force effectivenessproject load industry sector geographic penetration bidding success rates new ordersand order backlog funded nonfundedprofit margin ebitda/revenues net income/revenuesturnover revenues/investmentsoverhead/expense mgmt. marketing/administrative accounts receivable current liabiliti

23、es fixed capital use of debt leverage investor relations analyst coveragegrowth revenuescost of capital financial liquidity capital accessibility market alternative returns return on total capital (rotc) return on gross investment (rogi)return on investment strategic alliance/joint ventures market f

24、ocus investment capital branch office project working capital business dev. costsservice deliveryproject execution overall contract management technological capabilities subcontractor mgmt. operating leverage labor productivitybusiness processestranslating value into management systemscontentshr rei

25、nforcesanalyze critical value driversreview performance metricsalign performance metrics to objectivesrealign business processes target setting planning budgeting resource allocation reporting performance assessmentalign business unit-specific processesalign decision making processes based on value

26、priorities communicateto investors gain commitment value driver analysis reinforcement business processalignment “push down”implement on corporate and business unit levelcommunicate value-driven decisionseducate, inform, and reinforcesenior level executive commitmentbroad operational buy-in communic

27、ation of philosophy and general strategic objectivesbroad educational initiative for managersalignment of communicationalignment of performance criteriainput for ease of implementationhr-alignment of all functions, especially incentive design and performance managementsharing the “l(fā)earnings”communic

28、ationbusiness unit-specific alignment of hr programsbroad educational effort for all employeesfurther hr-systems alignmentthe hr-function can significantly contribute to the success of the implementation value-creating behaviors, ownership culture, priorities, decisions, and measurementlinking organ

29、izational systems to value drivers has multi-point linkages vbm-aligned managementprocesses and structurecorporate culturevbm-alignmentdesired value-creating behaviors and competencieshr policiesand managementemployment relationships(“whats the deal?”)organizationan aligned organizational strategy w

30、ill have an impact on business value driversfinancial value driversorganizational impactleadershipstaffingrewardsorganizationeffectivenessperformancevbm alignmentdevelopmentincreased market sharerevenue growthprofit margins asset turnover debt/ equity ratio risk profile business expansionimproved co

31、mpetitivenessoperational efficiencyorganizational effectivenessoptimal capital structuregrowth returns cost of capitalvalue drivers leadership is responsible for the expected behavioral changes critical questions that link management systems to vbmcritical questions has the desired culture been arti

32、culated? does vbm fit into the culture of the corporation and/or of business units? what are the key messages you want people to get from vbm? how do you want peoples behavior to change under vbm? do managers and employees have the ability to impact the vbm implementation?implementing vbm requires a

33、 certain corporate cultureperson orientedperformance orientationwe emphasize how things are done. a focus on the processes and activities that lead to high performance.we emphasize what is accomplished.the result is more important than the procedure.process orientedresults orientedpeople perspective

34、we focus not only on what people can deliver, but also on each person as an individual.we focus on getting the job done. our concern for people is based primarily on what they deliver for the organization.identity perspectiveemployees identify primarily with our organization.employees identify prima

35、rily with their professions.company orientedprofession orientedopenness perspectivethere is a defined organizational type of person, viewpoint, and communication style. there are often lengthy induction and orientation periods which fortify our culture.diversity of people, viewpoints, and communicat

36、ion styles are encouraged. newcomers feel at home soon after arrival.closed systemopen systemcontrol orientationactivities, results, and procedures are developed, managed, and maintained by the organization.individuals, teams, and smaller organizational units take accountability for their own activi

37、ties, results, systems, and procedures.system-drivenself-drivenflexibilitywe adhere to well-established standards and procedures to deal with customers.standards and procedures are flexibly applied to meet customer expectationsnormativepragmaticjob orientedaligning talent management practices based

38、on corporate culture talentmanagementprioritiesandactionalignment issueshaving the right people doing the right things to reach business goalsengagement issuescreating the environment where the right people want to bealignment prioritiesengagement prioritieslearningrewardingstaffingperformingorganiz

39、ingtalentmanagementpracticeshr-alignment follows the vbm implementation processhr-vbm-audithr-alignmentstep 1:strategic assessmentstep 2:current statestep 4:value drivers financial/operationalstep 3:future statestep 5:hr policy alignmentstep 6: hr structure and service deliverystep 8:measure and mon

40、itorstep 7:change mgmt. strategyaligning hr to vbm: implementation is a complex processstep 1:strategic assessmentstep 2:future statestep 4:value drivers financial/operationalstep 3:current stateobjectivestoolsoutcomesgathering data on business issues with vbm implementationassessing the gap between

41、 corporate and business unit perspectivesanalysis of current state concerning:culturebusiness processesvalue enhancing behaviorsdesign of the future state in respect to:long-term business goalsbusiness processesculturebehaviorsstructured interviewexisting data and material analysisinput from strateg

42、y department or financedefine expectations from corporateperspective on value creationdefine main problems of business unit managersownership for the problemsexpectations for hr rolecultural assessment surveybusiness process monitoring and mappingstructured interviews and design workshopsuse of tool

43、s prepared in previous stepdesign workshopsvbm culture gapcheck of existing business processes - vbm related with an hr-impactcheck of hr-business processes and programsassessment of behaviors enhancing/hindering value creationcascading value-driver tree to business unit levelssecuring understanding

44、 for different unit contributions to value creationcompensation alignment with vbmvalue-driver generationindustry benchmarkslink to corporate objectivesincentive design, performance designaction plan concerning needed changes in the respective areasdefinition of business unit-specific value driversd

45、efinition of hr-inputs for defined-value driversdefinition of main hr-programs to reinforce strategy and value creation, e.g compensation, performance managementaligning hr to vbm implementation is a complex processstep 5:hr policy alignmentstep 6: hr structure and service deliverystep 8:measure and

46、 monitorstep 7:change mgmt. strategyobjectivestoolsoutcomesdefinition of the workforce strategyalignment of all hr systemsdefinition of value enhancing hr structure and service deliverydivision of tasks between corporate and business unitdefinition of a change management plandefinition of transition

47、 management planassignment of responsibilitiesbest practicesdesign tools and workshopsbest practicesorganizational design toolscost analysis (activity based)process mappingaction plan structure concerning needed changes in the respective areasimplementation tools for managerspositioning of hr as par

48、tner for business units for vbm implementationdefinition of roles and services providedassessing the vbm-implementation planfeedback and milestone checkfocus accountabilityengagement modelcontinuous reporting and communicationsdefinition of corrective measuresdefinition of vbm impact on the engageme

49、nt of the workforcevbm-based behaviorvbm-hr-measurement systemdefinition of needed changes in:staffingrewardinglearningleadershipperformingchange plan including:communication strategyeducation strategyleadership alignmenttransition strategycritical factors driving successful implementation of vbm st

50、rong support at the executive management (ceo) level effective communication throughout the organization aligned management and organizational systems developed focus on strategic planning resource allocation on the basis of value creation persistence and patience about hewitt associates - our prese

51、nce worldwide parispraguerotterdamst. albansstockholmutrechtviennawarsawwiesbadenzrichamsterdambrusselsbudapestdublineindhovengenevalisbonljubljanamadridmilanneuchateleuropeauklandbangalorebangkokbeijinggurgaonhong kongjakartakuala lumpurmanilamelbournemumbainew delhiseoulshanghaisingaporesydneytoky

52、owellingtonasia/pacificst. louissan antoniosan franciscosan juansantiagoso paulosanto domingotampathe woodlandstorontovancouverwashington, d.c. (consulting)washington, d.c. (research)los angelesmexico citymcleanmilwaukeeminneapolismontralnew yorknewport beachorlandophiladelphiaphoenix/scottsdalepitt

53、sburghreginarowaytonthe americasatlantabostonbridgewaterbuenos airescalgarycaracascharlottechicagocincinnaticlevelanddallasdenverdetroitlincolnshire (hq)more than 12,000 associates in 81 offices in 36 countries around the worldour standingabout hewitta global management consulting firm specializing

54、in human resource solutions. our strength is helping organizations identify and implement people solutions using both the strategic and tactical approaches. privately held since 1940; recognized as a leading employer global revenue of more than us$1.3 billion in fy 2000 among the top 20 global manag

55、ement consulting firms in the top 200 of forbes magazines “top 500 private companies” “wrote the book” on workforce management, the talent solution: aligning strategy and people to achieve extraordinary results. leading executive compensation consulting firm0%5%10%15%20%25%30%f100f100-200f200-300f30

56、0-400f400-500percent of “fortune 500” companies using hewitts executive compensation consulting services1979hewitts vbm initiative launched within compensation practice1995 - 2000integrated value alignment program implementation at client companiesexecutive and broad based compensationleadership tra

57、iningperformance managementemployee communicationsstaffing and talent managementaca publications, shareholder value incentives and creating equity excitement, 1995, unleashing trapped value with business unit incentives, 1998vbm conference presentationsvbm conference presentationsclient teleconferen

58、ce sponsored by hewitt and holt value associates, oct 5th, 2000 “beating the fade: impact of employee branding on business value”vbm for financial institutions, london, 2000vbm- linking strategic planning, performance measurement and compensation, executive programs course at kellogg graduate school

59、 of management, 1998 to present. global finance conference, 2000vbm employee education programvbm employee education programcreating value working to win, a video based vbm and eva training program featuring abbie smith, university of chicago, graduate school of businessresearch breakthroughresearch

60、 breakthroughwachovia bank, linking employee engagement to business results1980 - 1990vbm compensation client projects-examplesvan dornmattelpacific 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; collabora