This is where it all counts: measuring value creative performance. Trouble is you cant, or not directly, can you? Well there are techniques such as Economic Value Added which is a fine attempt by consultants to solve this problem. But in the articles below I present a much more straight forward technique for going about this problem. Concentrating on cash flow data only, the technique is simple and transparent and therefore easily accepted by those being evaluated!
Of course performance is all about measurement against a goal. Setting those goals in the corporate environment is often very vague and unstructured or simply a blunt "do 10% better than last year". Using the technique described below bases performance goals in a value creative framework: meet them and the corporate will have increased in value. Recognition of course by external investors may lag, but value creation will always be recognised at some point.
The implications are huge: embedding a value based culture throughout the corporate and aligning performance to value creation.