Summary: The EVA Challenge

The must-read summary of Joel Stern and John Shiely's book: "The EVA Challenge: Implementing Value-Added Change in an Organization".This complete summary of the ideas from Joel Stern and John Shiely's book "The EVA Challenge" shows how Economic Value Added is the best and most direct measure of whether a business is creating wealth when the cost of its capital has been taken into account. EVA also aligns precisely the interests of the company's owners with the interests of the managers in a way that is free of the distortions and vagaries of accounting conventions. In their book, the authors demonstrate that effectively harnessing EVA will require three components: a measurement system, an incentive system and a financial management system. This summary explains each of these components and how you can implement them to analyse the success of a business.Added-value of this summary:• Save time• Understand key concepts• Expand your knowledgeTo learn more, read "The EVA Challenge" and find out how you can master the art of Economic Value Added.