Economic Value Management: Applications and Techniques [Hardcover]

Eleanor Bloxham (Author)

Book Description

Series: Wiley Finance | Publication Date: November 8, 2002

An action-driven approach to assessing, creating, and protecting value

"The timing for publication of Eleanor Bloxham's Economic Value Management is providential. We are assailed by the reality that the board of directors of leading companies have approved, no, have directed, accounting practices that inflate the reported earnings but that lack economic substance. Audit firms in search of personal wealth have been selling 'earnings' from their consulting division to their full client list. This volume is uniquely couched to restore integrity to the financial understanding of corporate functioning. If you want-and you should-to start getting American business back on the right track, you should read this book."-Robert A. G. Monks, Publisher of www.ragm.com and several books about corporate governance

"Educated investors are essential to successfully functioning capital markets. At this critical time in our financial history, restoring the confidence in our financial system lost over the past year will depend upon financial advisors and investors truly understanding the companies they invest in. As Economic Value Management shows, being educated means more than understanding the unique language of the stock market, it is more than reading a prospectus or an annual report, it is more than listening to an analyst's opinions. Being educated requires a genuine understanding of the value of a company."- Mary L. Schapiro, Vice Chairman, President, Regulatory Policy and Oversight, NASD (National Association of Securities Dealers)

"Economic Value Management would have limited much of the economic turmoil we have experienced in the last eighteen months. It is the way a company should be managed."- John McCoy, Chairman of Battelle Memorial Institute, retired Chairman and CEO of Bank One Corporation

"Nothing could be more appropriate and needed at this time in history than understanding how decisions affect corporate economic value. Eleanor Bloxham's exploration of this issue is clear, easy to follow, and thorough in its breadth. Had corporate officers used economic value management techniques throughout their organizations and investors focused on such issues, there would have been much greater rationality in the stock market with much less eventual bloodletting. Indeed, in the aftermath of recent disclosures, the focus on Economic Value Management metrics should increase substantially, and this book provides a solid foundation for understanding such an approach."-Joseph A. Alutto, Dean and John W. Berry Sr., Chair in Business, Fisher College of Business, The Ohio State University

Editorial Reviews

Review

"A good read for managers who want to see the horizon as well as a foot in front of them." -- Working Knowledge, Harvard Business School

Review

?In an era when EPS has been redefined as ?expecting prison sentence,? Eleanor Bloxham?s call for back-to-value-basics is a breath of fresh air. Any CEO, director or investor who wants to get a handle on the real numbers that show how companies perform should grab a hold of Economic Value Management. Viva EVM!?--Patrick McGurn, Vice President & Special Counsel, Institutional Shareholder Services

?Bloxham has a clear, common-sense, practical approach that provides welcome guidance to managers and directors on how to measure, create, and reward value. She avoids the usual jargon with sharply drawn examples and illuminating illustrations and the result is well worth reading.?--Nell Minow Editor, The Corporate Library and Coauthor of several books including Corporate Governance

"The author has given her "all" ? rigorous scholarship, systematic thinking, and first-hand cases ? and the result is an authoritative guide for corporate leaders who want to break out of financial ratio boxes to build sustainable value."--Alexandra R. Lajoux, Editor in Chief of Director's Monthly, and Coauthor (with J. Fred Weston) of The Art of M&A: Financing and Refinancing

"As a guide to the big dig this book is invaluable. Economic Value Management requires sustainable improvement in multiple dimensions and this book, replete with real-life examples and richly illustrated by charts, tables and other exhibits, shows us exactly how to make this happen."--Thomas R. Horton, former CEO,American Management Association

"Nothing could be more appropriate and needed at this time in history than understanding how decisions affect corporate economic value. Eleanor Bloxham's exploration of this issue is clear, easy to follow, and thorough in its breadth. Had corporate officers used economic value management techniques throughout their organizations, and investors focused on such issues, there would have been much greater rationality in the stock market with much less eventual "blood letting." Indeed, in the aftermath of recent disclosures, the focus on economic value management metrics should increase substantially, and this book provides a solid foundation for understanding such an approach."--Joseph A. Alutto Dean and John W. Berry, Sr. Chair in Business Fisher College of Business, The Ohio State University

See all Editorial Reviews

Product Details

• Hardcover: 304 pages
• Publisher: Wiley; 1 edition (November 8, 2002)
• Language: English
• ISBN-10: 0471354260
• ISBN-13: 978-0471354260
• Product Dimensions: 9.1 x 6.8 x 1.1 inches
• Shipping Weight: 1.2 pounds (View shipping rates and policies)
• Average Customer Review: 4.9 out of 5 stars  See all reviews (7 customer reviews)
• Amazon Best Sellers Rank: #1,078,346 in Books (See Top 100 in Books)

More About the Author

I enjoy writing because, for me, it is a way of speaking to people I'll never meet. I enjoy sharing my thoughts and experiences and what I've learned or discovered.

While I may share concrete experiences what always drives my writing are larger concepts. Often what I write about is a new way of thinking about something or a trend that I see coming. I like to turn ideas and experiences upside down and analyze meanings from different perspectives. I also like to weave together separate ideas or trends which have been segmented in the larger consciousness but share interesting relationships or similarities.

Sometimes what appears in my writing is completely spontaneous -- the act of writing itself becomes the genesis for discovery. When I am writing, I get the most enjoyment from genres where I can create the space required for readers to have a conversational experience -- a discovery of your own thoughts, feelings and aha moments. I want you to make your own connections and create your experience and I see the written page as the vehicle to a truth you may already have (partially) known all along.

For more information about me, please visit my website www.thevaluealliance.com

Customer Reviews

Most Helpful Customer Reviews

3 of 3 people found the following review helpful:

5.0 out of 5 stars Cutting Through the Confusion about Performance Metrics, March 31, 2003

By 

arnold j ziegel (stowe, vt United States) - See all my reviews

Amazon Verified Purchase

This review is from: Economic Value Management: Applications and Techniques (Hardcover)

Corporate senior executives are subjected to pressure for performance from many constituents - shareholders, customers, employees, governmental and regulatory authorities, rating agencies, board members, and securities analysts. And, since these are by definition high achieving individuals, some of the greatest pressure is from within. The existence of many constituents, many with conflicting objectives, often makes it very difficult for CEO's, CFO's and board members to focus on key performance goals and metrics. Over the course of my 34 year career as a corporate banker, I've seen many confused executives, pressured for EPS growth, revenue growth, ROE, but not necessarily understanding the long run impact of any or all of these performance metrics.

Ms. Bloxham has produced a superb book that takes a "holistic" view of the process of identifying performance criteria for senior executives, and not just for those in the private sector. She and I share common views about the benefits of economic value added metrics, but she has gone well beyond this to address many of the conflicts for performance faced by executives. She provides an excellent framework for establishing a set of logical goals and performance metrics for managing complex businesses and non-profit organizations.

2 of 2 people found the following review helpful:

5.0 out of 5 stars This Book is a Must Read to Understand Economic Profit, July 6, 2003

By 

Gary Cokins (Cary, North Carolina) - See all my reviews
(REAL NAME)   

This review is from: Economic Value Management: Applications and Techniques (Hardcover)

When practitioners, who have actually rolled up their sleeves and implemented, write a book, it is usually a good read. In Eleanor Bloxham's case, this is a great read.

There is so much confusion about what operational and strategic levers an organization should push or pull to create rather than destroy shareholder wealth. Most articles slip into gross platitudes and sloganeering and sidestep the "how to." Bloxham's book dives in but explains adnmittedly complex interelationships in a way you can understand them. She does a fine job integrating the component tools, like the balanced scorecard and activity based costing, into economic value management.

Some day boards of directors may find this to be the standard book for assisting their shareholders make, not lose, money.

1 of 1 people found the following review helpful:

5.0 out of 5 stars essential, but enjoyable reading for excecutives, February 9, 2003

By A Customer

This review is from: Economic Value Management: Applications and Techniques (Hardcover)

A friend of mine recommended this book to be, but when I first saw the title of the book I wasn't sure what it was going to
be about. It seemed a bit intimidating. However, the book is very easy to read, has incredible insights and having read it, I now can certainly understand why the book was named a late addition candidate to "ONE OF THE BEST BOOKS of 2002" and a CEO "RECOMMENDED READ" by CEO refresher, an independent editorial board recognized by the Harvard Business School and
the Wall Street Journal. I think it is one of the best books on business I've ever read.

I'm on my second reading of this book and as I go through it I'm revising my business unit's plans for the coming fiscal year. As Bloxham points out, change is a difficult process, but worth it, so I'm sure I'll be referring to this book for years to come.