价值为基础的管理ppt课件

1、Value 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 Capita

2、l 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 public

3、ity 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 creation The p

4、rimary 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 EnablesA consistent approach to management planning, resource allocation, performance assessment, and communicationManagement t

5、o focus and prioritize on “value Alignment of management action with strategic objectives and shareholder valueVBM is NotSolely a question of choosing a performance metricLimited to implementation within the corporate planning and finance divisionEasy to implementHR Alignment Facilitates the Success

6、 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 incentivesEmp

7、irical 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 with solely Corp

8、orate 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 Behaviors and C

9、ompetenciesEmployment RelationshipPersonal Needs,Goals, and StrategiesIndividual Prioritiesand SkillsHR Policiesand ManagementPersonal VisionOrganizationPeople Requirements“Ownership Culture Decision-making Priorities ReportsAn HR Perspective on Value ManagementInvestor ScorecardTotal Shareholder Re

10、turn (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 IndicatorsEmployee Engagement

11、 & ProductivityProduct Offering & InnovationPeople StrategySHORT TERM INDICATORS (Illustrative)Decision Process and Organizational StructurePerformance Management and IncentivesInternal Resource AllocationStaffing and RecruitmentValues and CultureCommunicationsTrainingInternal Process“Alignment toVa

12、lueInternalScorecardLong Term Goals and performance targets anchored to Investor ExpectationsWhat is Value in the Business Context?TimeTodayBusiness Value: What future cash flows are worth today$Competing Perspectives:Look back at what has happenedLook forward at what will happenSpread costs smoothl

13、y over timeLook at the timing of when cash comes and goesOnly count what can be measuredCount everything that affects valueValue PerspectiveAccounting PerspectiveBridging the Gap AccountingResultsReturnsGrowthMarginsMarket shareProduct qualityStrategyManagement teamPlan for the futureInnovationCompe

14、titive position/investmentMarket ValuationStock PriceTotal Shareholder Return (TSR)Expectations of Value Likelihood of successDegree of improvementEconomic environmentMeasurement of Value Measurement of value is not a neutral act - it is a choice which signifies managements priorities and dictates t

15、he 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 Return on Equity (ROE)Return on Assets (ROA)Return on Capital (ROC)Return on Net Assets (RONA)Return Measur

16、esRevenue growthAsset growthInvestment growthMarket shareVolumeGrowth MeasuresTotal Shareholder ReturnMarket Value Added (MVA)Economic Value Added (EVA)Cash Value Added (CVA) Cash Flow Return on Investment (CFROI)Combined MeasuresDrivers of Shareholder Value ReturnsGrowthVALUEThe two most fundamenta

17、l drivers of share holder 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 C

18、apitalReturn on CapitalProfit 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

19、for long term growth potentialShort-term Returns:Returns in excess of cost of capital-RONAEP spread (%)CFROIROEShort-term Growth:Net Income growthCash Flow growthSales GrowthDividendsFree Cash FlowIndustry Factors:Not company specificMacroeconomic factorsDemographicsCommodity prices, etcInternal - C

20、ompany specific(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 alternati

21、ves (harvesting, 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 r

22、eporting and 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 competit

23、ive advantageCapabilitiesPerformance behaviors that are observable, measurable, and critical to successful performanceCompetenciesFactors that facilitate employee commitment to the organizationCommitmentBalanced MeasuresExampleFinancialMarginsCost ReductionProject Profitability ClientClient Satisfac

24、tionPerceived Value of Service OperationalOn-time Completion RatesBidding Success Rates EmployeeEmployee Survey ResultsTurnover Rates EVAPricingFixed Cost ContractsCost Plus ContractsCurrency ExposureMarket PositionCompetitive DifferentiationPerceived Value of Service Customer RelationshipsSales For

25、ce EffectivenessProject LoadIndustry SectorGeographic PenetrationBidding Success RatesNew Ordersand Order BacklogFundedNonfundedProfit MarginEBITDA/RevenuesNet Income/RevenuesTurnoverRevenues/InvestmentsOverhead/Expense Mgmt.Marketing/AdministrativeAccounts ReceivableCurrent LiabilitiesFixed Capital

26、Use of Debt LeverageInvestor RelationsAnalyst CoverageGrowthRevenuesCost of CapitalFinancial LiquidityCapital AccessibilityMarket Alternative ReturnsReturn on Total Capital (ROTC)Return on Gross Investment (ROGI)Return on InvestmentStrategic Alliance/Joint VenturesMarket FocusInvestment CapitalBranc

27、h OfficeProject Working CapitalBusiness Dev. CostsService DeliveryProject ExecutionOverall Contract ManagementTechnological CapabilitiesSubcontractor Mgmt. Operating LeverageLabor ProductivityBusiness ProcessesTranslating Value into Management SystemsContentsHR ReinforcesAnalyze critical value drive

28、rsReview 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 priorities Communicateto investors

29、Gain Commitment Value Driver Analysis Reinforcement Business ProcessAlignment “Push DownImplement on corporate and business unit levelCommunicate value-driven decisionsEducate, inform, and reinforceSenior level executive commitmentBroad operational buy-in Communication of philosophy and general stra

30、tegic 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 “LearningsCommunicationBusiness unit-specific alignment

31、 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 Organizational Systems to Value Drivers ha

32、s 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 will have an Impact on Business Value D

33、riversFinancial Value DriversOrganizational ImpactLeadershipStaffingRewardsOrganizationEffectivenessPerformanceVBM AlignmentDevelopmentIncreased market shareRevenue growthProfit margins Asset turnover Debt/ equity ratio Risk profile Business expansionImproved competitivenessOperational efficiencyOrg

34、anizational effectivenessOptimal capital structureGrowth Returns Cost of CapitalValue drivers Leadership is responsible for the expected behavioral changes Critical Questions that Link Management Systems to VBMCritical QuestionsHas the desired culture been articulated?Does VBM fit into the culture o

35、f 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 Certain Corporate CulturePerson OrientedPe

36、rformance 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 PerspectiveWe focus not only on what people can delive

37、r, 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 primarily with their professions.Company Oriente

38、dProfession 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 communication styles are encouraged. Newcomers feel a

39、t 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 activities, results, systems, and procedures.Syst

40、em-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 on Corporate Culture TalentManagementPriori

41、tiesandActionAlignment IssuesHaving the right people doing the right things to reach business goalsEngagement IssuesCreating the environment where the right people want to beAlignment PrioritiesEngagement PrioritiesLearningRewardingStaffingPerformingOrganizingTalentManagementPracticesCultureHR-Align

42、ment 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 MonitorStep 7:Change Mgmt. StrategyAlig

43、ning 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 corporate and business unit perspec

44、tivesAnalysis 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 strategy department or financeDefine expect

45、ations 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 tools prepared in previous stepDesign wo

46、rkshopsVBM 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 for different unit contributions to

47、 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 driversDefinition of HR-inputs for defined-v

48、alue 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 MonitorStep 7:Change Mgmt. Strategy

49、ObjectivesToolsOutcomesDefinition 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 management planAssignment of respon

50、sibilitiesBest 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 partner for business units for VBM impl

51、ementationDefinition 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 engagement of the workforceVBM-based behavio

52、rVBM-HR-Measurement SystemDefinition of needed changes in:StaffingRewardingLearningLeadershipPerformingChange plan including:Communication strategyEducation strategyLeadership alignmentTransition strategyCritical Factors Driving Successful Implementation of VBM Strong support at the executive manage

53、ment (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 Presence Worldwide ParisPragueRotterdamSt

54、. AlbansStockholmUtrechtViennaWarsawWiesbadenZrichAmsterdamBrusselsBudapestDublinEindhovenGenevaLisbonLjubljanaMadridMilanNeuchatelEuropeAuklandBangaloreBangkokGurgaonHong KongJakartaKuala LumpurManilaMelbourneMumbaiNew DelhiSeoulShanghaiSingaporeSydneyTokyoWellingtonAsia/PacificSt. LouisSan Antonio

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56、onBridgewaterBuenos AiresCalgaryCaracasCharlotteChicagoCincinnatiClevelandDallasDenverDetroitLincolnshire (HQ)More than 12,000 associates in 81 offices in 36 countries around the worldOur StandingAbout HewittA global management consulting firm specializing in human resource solutions. Our strength i

57、s helping organizations identify and implement people solutions using both the strategic and tactical approaches. Privately held since 1940; recognized as a leading employerGlobal revenue of more than US$1.3 billion in FY 2000Among the top 20 global management consulting firmsIn the top 200 of Forbe

58、s 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 firmPercent of “Fortune 500 Companies Using Hewitts Executive Compensation Consulting Services1

59、979Hewitts VBM initiative launched within compensation practice1995 - 2000Integrated Value Alignment Program implementation at client companiesExecutive and Broad Based CompensationLeadership trainingPerformance ManagementEmployee CommunicationsStaffing and Talent ManagementACA publications, Shareho

60、lder Value Incentives and Creating Equity Excitement, 1995, Unleashing Trapped Value with Business Unit Incentives, 1998VBM Conference PresentationsClient Teleconference sponsored by Hewitt and HOLT Value Associates, Oct 5th, 2000 “Beating the Fade: Impact of Employee Branding on Business ValueVBM f