Académique Documents
Professionnel Documents
Culture Documents
Pavan Gandhok
Deputy MD South and South-East Asia
Jakarta: 5 March 2002
80 Raffles Place
#28-02 UOB Plaza 1
Singapore 048624
Copyright 2002. All rights reserved. No part of this presentation may be reproduced or transmitted in any form or by
any means, electronic or mechanical, including photocopy, recording, or any information storage and retrieval system
without the express written consent of Stern Stewart & Co. EVA is a registered trademark of Stern Stewart & Co.
Negative MVA
Companies
1.65
1.54
87%
82%
(0.18)
(0.18)
13%
18%
Pan-Asia
0. 81
56%
(0.30)
44%
Wealth destroyers
53%
US$139b
Wealth creators
47%
US$124
Study Sponsors
<$100 MM
Revenue size
$100MM -
$1 B
- $5 B
Europe
Over $5 B
Innovation
Customer focus
Retail
Business focus
Manufacturing Retail
Services
Public
Principal
businesses
2-3
>3
Finance
Ownership
Asia
Basic Strategy
Latin
America
North America
Geography
Africa
Private
Number of
countries
2-5
6 - 10
11 - 40
> 40
< 1,000
Employees
> 50,000
1,000 - 5,000
5,000 - 9,999
10,000 - 49,999
State owned
0%
20%
40%
60%
80%
100%
0%
20%
40%
60%
80%
Source: SAI Study conducted by Stern Stewart &Co in association with Hackett Benchmarking and Research, a Division of Answerthink.
100%
20%
16%
15%
10%
5%
0%
-5%
-4%
Average annual excess return vs. peers
Value aligned
Non aligned
Source: SAI Study conducted by Stern Stewart &Co in association with Hackett Benchmarking and Research, a Division of Answerthink.
Leadership
Decision-making
Management reporting
Incentives
Source: SAI Study conducted by Stern Stewart &Co in association with Hackett Benchmarking and Research, a Division of Answerthink.
85
72
66
62
Quartile 1
Quartile 2
Quartile 3
Quartile 4
Lowest
Lowest35
35
35
Source: SAI Study conducted by Stern Stewart &Co in association with Hackett Benchmarking and Research, a Division of Answerthink.
Celebrate success
67%
60%
40%
29%
20%
0%
Leaders communicate and celebrate
successes consistently
Value-aligned
Non-Aligned
Source: SAI Study conducted by Stern Stewart &Co in association with Hackett Benchmarking and Research, a Division of Answerthink.
9%
Non-aligned
Source: SAI Study conducted by Stern Stewart &Co in association with Hackett Benchmarking and Research, a Division of Answerthink.
80%
73%
70%
60%
Value aligned
49%
47%
50%
33%
34%
40%
Unaligned
27%
30%
25%
20%
13%
20%
9%
10%
0%
Major
divisions
Geography
Revenues are tracked,
Expenses are tracked
Product lines
Revenues are tracked,
Expenses are tracked
Individual
products
As low as
possible
Source: SAI Study conducted by Stern Stewart &Co in association with Hackett Benchmarking and Research, a Division of Answerthink.
26%
0%
10%
20%
Unaligned
30%
40%
50%
60%
Value aligned
Source: SAI Study conducted by Stern Stewart &Co in association with Hackett Benchmarking and Research, a Division of Answerthink.
18%
33%
Understand business
model, value proposition,
and key strategy elements
0%
11%
10%
20%
Unaligned
30%
40%
50%
60%
Value aligned
Source: SAI Study conducted by Stern Stewart &Co in association with Hackett Benchmarking and Research, a Division of Answerthink.
93%
Value-aligned
Non-aligned
100%
80%
60%
47%
60%
40%
18%
20%
0%
We highly encourage internal
new business creation
80%
72%
60%
40%
18%
20%
0%
Value-aligned
Non-Aligned
Source: SAI Study conducted by Stern Stewart &Co in association with Hackett Benchmarking and Research, a Division of Answerthink.
Incentive Compensation
29%
Value-aligned
Non-aligned
Source: SAI Study conducted by Stern Stewart &Co in association with Hackett Benchmarking and Research, a Division of Answerthink.
Senior corporate
managers
79%
45%
Senior business
unit managers
79%
47%
Middle managers /
front line managers
64%
50%
83%
61%
91%
0%
20%
1
40%
3 to 4
60%
5 or more
80%
100%
Value-aligned
Non-aligned
Source: SAI Study conducted by Stern Stewart &Co in association with Hackett Benchmarking and Research, a Division of Answerthink.
20%
56%
13%
0%
58%
13%
51%
7%
49%
31%
20%
Unaligned
40%
60%
80%
Value aligned
Source: SAI Study conducted by Stern Stewart &Co in association with Hackett Benchmarking and Research, a Division of Answerthink.
100%
45%
55%
Value
Valuealigned
aligned
73%
73%yes
yes
Non
Nonaligned
aligned
49%
49%yes
yes
Yes
No
Source: SAI Study conducted by Stern Stewart &Co in association with Hackett Benchmarking and Research, a Division of Answerthink.
18%
0%
47%
9%
27%
4%
20%
2%
5%
47%
18%
20%
Unaligned
Value aligned
Source: SAI Study conducted by Stern Stewart &Co in association with Hackett Benchmarking and Research, a Division of Answerthink.