Customer Reviews

Value Based Management: Developing a Systematic Approach to Creating Shareholder Value

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I've watched the words "Shareholder Value" creep into our business vocabulary over the past decade or so, and I've heard many explanations of how to optimize it. Unfortunately, there about as many definitions and techniques for measuring and managing it as there are books on the subject. I've read many of these other texts and worked with the other consultants Mr. Knight mentions in his book. But none of them have approached the precision and clarity of this book. Mr Knight starts with why management should understand the shareholder's needs and the proper methods for addressing those needs, then he takes the reader logically through all the steps (including the subtle nuances) of implementing such a program. There is no more comprehensive nor better written book on this subject on the market. If only Mr. Knight had written his book 10 years ago, many of us would have been saved from endless hours of vague and confusing meetings about what we were really trying to accomplish.

This book shows how to develop and implement strategies regarding value creation for shareholders. It has a very good mix of theory and business cases. The core aspect of this book is the theory behind the imperative link of: Strategic Planning, Budgeting, Financial Reporting and Incentive Compensation. This theory is tested against many sucessful business cases. The author also shows why some companies fail after incomplete or wrong assumptions on the value based management implementation.

I expected much more of it. Very basic in it's assesments and definition. I cannot get a real signification of EVA until chapter 6. Good for earliers beginners not awaiting for much academic support