Management Effectiveness, Shareholder Value
Aligning Managers and Owners
We like to think that employees work for the company, but we know everyone ultimately works for themselves, serving their personal values within the incentives and constraints of their organizations. Most people will do what is right regardless of how they are paid. But people will go the extra mile only if they are rewarded for the effort.
Services:
How do you stack up against your peers in alignment of managers and owners? We can benchmark you against the best, and paint a clear picture of the likely benefits, and costs, of change to better alignment.
Case: Telecom calls us to see how their system is working for them
Case: Steel fab wants to know what we're going to do to their pay
What do your incentives encourage? Learn the power of integrating value-aligned measures and incentive compensation as an integrated system for encouraging managers to think and act like owners.
Case #1: Public apparel company
Case #2: Private textile company
The ultimate benefit of greater alignment is superior integration of finance, operations, and strategy. Apply our simple, yet sophisticated methods for linking value to strategy to your planning and decision making.
Case: Consumer goods company has a plan
Capital Budgeting with Discipline
Wrangling among business units and between management levels may seem an inevitable part of the capital budgeting process. It isn't, if you bring a value discipline into the process.
Value Creating Transfer Prices
Poor transfer prices (or cost allocations) distort your measures and lead to value-destroying decisions. Improve your intra-company transfers of value with better, and more cost-effective, intra-company charges.
Do your managers communicate in a common language of value creation? Make a value focus intuitive and second-nature for the people executing your strategies.
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