Implementation Issues

• Consistent link of financial and non financial

  value drivers (e.g. Balanced Scorecard)

• Value based goal setting considering capital market expectations.

• Interlocking of company value as a target figure in strategic and operative controlling, especially complementing strategic Controlling with value based analyses instruments

• Consistent modification of incentive schemes for executives via integration of company value based performance KPI's

• Coordinated design of accounting und equity-based

  Compensation components

An ideal control effect is reached when the same financial

KPI's are used continuously

Beneath the four control levers for value

added operative value drivers can be identified

Beneath the four control levers for value

added operative value drivers can be identified

1. Promising to increase company value helps a Value-Based Management (VBM) program boost stock prices.

2. Successful VBM companies train most of their managers and more staff compared to less successful ones.

3. Including more employees in VBM bonus programs increases the likelihood of success.

4. Successful VBM companies often combine all resource allocation into one system measured by value management.

5. Companies doing well with VBM prefer funding broad strategies over individual projects.

• Linkage of value enhancement targets (‚strategy‘) and day-

  to-day business

• Recording of non-financial factors of success

• Focus on (still) formable future-oriented variables

• Reduction of business complexity to manageable size

  („simplicity“)

• Mobilization of employees („Make Strategy Everyone‘s Everyday Job“)

• Strategy-orientated performance-measuring

• Lack of Commitment / involvement of top management

• Lack of participation of employees

• Dogmatic administration

• Inadequate reduction of complexity