价值为基础的管理(英文版).pptx

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1、HewittValue 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

2、Capital 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

3、publicity 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 creati

4、on The primary 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 Enables A consistent approach to management planning, resource allocation, performance assessment, and communication Ma

5、nagement to focus and prioritize on “value” Alignment of management action with strategic objectives and shareholder valueVBM is Not Solely a question of choosing a performance metric Limited to implementation within the corporate planning and finance division Easy to implementHR Alignment Facilitat

6、es the Success 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

7、 incentivesEmpirical 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 wi

8、th solely Corporate 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 B

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

10、 Shareholder Return (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 IndicatorsEmpl

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

12、“Alignment toValue”InternalScorecardLong Term Goals and performance targets anchored to Investor ExpectationsWhat is Value in the Business Context?Competing Perspectives:Bridging the Gap Measurement of Value Measurement of value is not a neutral act - it is a choice which signifies managements prior

13、ities and dictates the 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 Drivers of Shareholder Value The two most fundamental drivers of share holder value : M

14、anaging 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 CapitalReturn on CapitalProfit Margi

15、nsAsset 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 for long term growth potentialShort

16、-term Returns:Returns in excess of cost of capital- RONA EP spread (%) CFROI ROEShort-term Growth: Net Income growth Cash Flow growth Sales GrowthDividendsFree Cash FlowIndustry Factors:Not company specific Macroeconomic factors Demographics Commodity prices, etcInternal - Company specific(Customize

17、d 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 alternatives (harvesting, divestin

18、g, 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 reporting and monitoring o

19、f 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 competitive advantageCapabilitie

20、sPerformance behaviors that are observable, measurable, and critical to successful performanceCompetenciesFactors that facilitate employee commitment to the organizationCommitmentBalanced MeasuresExampleFinancial Margins Cost Reduction Project Profitability Client Client Satisfaction Perceived Value

21、 of Service Operational On-time Completion Rates Bidding Success Rates Employee Employee Survey Results Turnover Rates EVAPricing Fixed Cost Contracts Cost Plus Contracts Currency ExposureMarket Position Competitive Differentiation Perceived Value of Service Customer Relationships Sales Force Effect

22、ivenessProject Load Industry Sector Geographic Penetration Bidding Success Rates New Ordersand Order Backlog Funded NonfundedProfit Margin EBITDA/Revenues Net Income/RevenuesTurnover Revenues/InvestmentsOverhead/Expense Mgmt. Marketing/Administrative Accounts Receivable Current Liabilities Fixed Cap

23、ital Use of Debt Leverage Investor Relations Analyst CoverageGrowth RevenuesCost of Capital Financial Liquidity Capital Accessibility Market Alternative Returns Return on Total Capital (ROTC) Return on Gross Investment (ROGI)Return on Investment Strategic Alliance/Joint Ventures Market Focus Investm

24、ent Capital Branch Office Project Working Capital Business Dev. CostsService DeliveryProject Execution Overall Contract Management Technological Capabilities Subcontractor Mgmt. Operating Leverage Labor ProductivityBusiness ProcessesTranslating Value into Management SystemsContentsHR ReinforcesAnaly

25、ze critical value driversReview 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 C

26、ommunicateto investors Gain Commitment Value Driver Analysis Reinforcement Business ProcessAlignment “Push Down”Implement on corporate and business unit levelCommunicate value-driven decisionsEducate, inform, and reinforceSenior level executive commitmentBroad operational buy-in Communication of phi

27、losophy and general strategic 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 “Learnings”CommunicationBusines

28、s unit-specific alignment 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 Sy

29、stems to Value Drivers has 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

30、Impact on Business Value DriversFinancial Value DriversOrganizational ImpactLeadershipStaffingRewardsOrganizationEffectivenessPerformanceVBM AlignmentDevelopmentIncreased market shareRevenue growthProfit margins Asset turnover Debt/ equity ratio Risk profile Business expansionImproved competitivenes

31、sOperational efficiencyOrganizational effectivenessOptimal capital structureGrowth Returns Cost of CapitalValue drivers Leadership is responsible for the expected behavioral changes Critical Questions that Link Management Systems to VBMCritical Questions Has the desired culture been articulated? Doe

32、s VBM fit into the culture of 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 Cor

33、porate CulturePerson OrientedPerformance 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

34、 only on what people can deliver, 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 th

35、eir professions.Company OrientedProfession 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 a

36、re encouraged. Newcomers feel at 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, result

37、s, systems, and procedures.System-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

38、 Culture TalentManagementPrioritiesandActionAlignment IssuesHaving the right people doing the right things to reach business goalsEngagement IssuesCreating the environment where the right people want to beAlignment PrioritiesEngagement PrioritiesLearningRewardingStaffingPerformingOrganizingTalentMan

39、agementPracticesHR-Alignment 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:C

40、hange Mgmt. StrategyAligning 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 a

41、nd business unit perspectivesAnalysis 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

42、 or financeDefine expectations 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 i

43、n previous stepDesign workshopsVBM 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 differe

44、nt unit contributions to 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

45、 HR-inputs for defined-value 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

46、 7:Change Mgmt. StrategyObjectivesToolsOutcomesDefinition 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

47、planAssignment of responsibilitiesBest 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 bus

48、iness units for VBM implementationDefinition 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 wo

49、rkforceVBM-based behaviorVBM-HR-Measurement SystemDefinition of needed changes in:StaffingRewardingLearningLeadershipPerformingChange plan including:Communication strategyEducation strategyLeadership alignmentTransition strategyCritical Factors Driving Successful Implementation of VBM Strong support

50、 at the executive management (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 Worldwid