Summary : The Eva Challenge - Joel Stern and John Shiely: Implementing Value-Added Change In An Organization

This work offers a summary of the book "THE EVA CHALLENGE: Implementing Value-Added Change In An Organization" by Joel Stern and John Shiely.Joel Stern is cofounder and Managing Partner of Stern Stewart & Co.

John Shiely is President of Briggs & Stratton Corporation, the world's largest producer of air-cooled gasoline engines.

This company is one of the most successful implementors of EVA.Economic Value Added (EVA) is the best and most direct measure of whether a business is creating wealth when the cost of its capital has been taken into account.

EVA also aligns precisely the interests of the company's owners with the interests of the managers in a way that is free of the distortions and vagaries of accounting conventions.The challenge is to harness EVA effectively to increase true economic profitability.

According to Stern and Shiely, that will require three components - a measurement system, an incentive system and a financial management system which are all EVA based.

Without those components, it will be impossible to tell whether or not a business is succeeding in making its capital worth more over time.

The Eva Challenge demonstrates that EVA is the best and most definitive financial performance measure.

In this valuable guide, the authors master the art of explaining EVA in a simple way.