价值为基础的管理课件.ppt

Value Based ManagementHewitt Associates August 2001,Creating Shareholder Value is Gaining Importance Due to a Variety of Factors,Regional/Capital Markets Perspective,Greater Focus onShareholder Value,Integration of OrganizationalStructures,Deregulation,Privatization,Integration of Capital Markets,WTO,Capital MarketInvestment Objectives,Mergers andAcquisitions,Globalization,Corporate Specific/TopManagement Perspective,Traditional accounting measures are not reliably linked toshareholder value,Growing recognition of the need to align management actions and rewards to long-term value creation,Increasing publicity ofshareholder value creationrankings (e.g., FT. Fortune),Possibility of takeoverby investors seeking“under” managed assets,“Buy in” by Corporate leaders,What is Value Based Management ?,A consistent framework that aligns management action and strategic objectives with shareholder value creation 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,HR Alignment Facilitates the Success of VBM Implementation,16.6%,6.7%,8.6%,7.1%,10.0%,3.0%,0%,2%,4%,6%,8%,10%,12%,14%,16%,18%,5-year Average %,TSR,CFROI,Sales Growth,Companies aligned to VBM objectives,Companies not aligned, VBM measures used for planning and compensation VBM goal setting Performance system Training Business unit and corporate incentives,Empirical Results Show a Link Between Organizational Implementation and Value Creation,Companies with business unit specific long-term incentives tied to shareholder value creation outperform companies without these incentives,Companies with Corporateand Business unit incentives,Companies with solely Corporate VBM incentives,3-year TSR%,23.3,20.5,22.8,25.5,22.5,25.4,20,21,22,23,24,25,26,1997-2000,1994-97,1991-94,Value-Creating Behaviors, Priorities, Decisions, and Measurement,Linking HR to VBM,VBM-AlignedManagement Processes,Corporate StructureAlignment,Corporate CultureVBM-Alignment,Desired Value-Creating Behaviors and Competencies,Employment Relationship,Personal Needs,Goals, and Strategies,Individual Prioritiesand Skills,HR Policiesand Management,Personal Vision,Organization,People Requirements,“Ownership” Culture, Decision-making Priorities Reports,An HR Perspective on Value Management,Investor ScorecardTotal Shareholder Return (TSR)Market Value Added (MVA),Management Track RecordGrowth / Return ProfileBusiness Strategy Investments in Future GrowthEconomic Value ImprovementIntellectual Capital,Investor Expectations of future earnings & risk,People Strategy,Decision Process and Organizational StructurePerformance Management and IncentivesInternal Resource AllocationStaffing and RecruitmentValues and CultureCommunicationsTraining,Internal Process“Alignment toValue”,InternalScorecard,Long Term Goals and performance targets anchored to Investor Expectations,What is Value in the Business Context?,Business Value: What future cash flows are worth today,$,$,$,$,$,Competing Perspectives:,Look back at what has happened,Look forward at what will happen,Spread costs smoothly over time,Look at the timing of when cash comes and goes,Only count what can be measured,Count everything that affects value,Value Perspective,Bridging the Gap,Accounting,ResultsReturnsGrowthMarginsMarket shareProduct quality,StrategyManagement teamPlan for the futureInnovationCompetitive position/investment,Market ValuationStock PriceTotal Shareholder Return (TSR),Expectations of Value Likelihood of successDegree of improvementEconomic environment,Measurement of Value,Measurement of value is not a neutral act - it is a choice which signifies managements priorities 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 :,Managing Shareholder Value,The 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 Capital,Profit MarginsAsset Turnover,Shareholder Value,Hierarchy of Tradeoffs,Dimensions of Value,Shareholder Value Creation,Performance measures and targets are customized to capture short term tradeoffs in view of long term value,Short-termTradeoffs,Long-term InvestmentsCapital Investment for long term growth potential,Short-term Returns:Returns in excess of cost of capital-RONAEP spread (%)CFROIROE,Short-term Growth:Net Income growthCash Flow growthSales Growth,DividendsFree Cash Flow,Industry Factors:Not company specificMacroeconomic factorsDemographicsCommodity prices, etc,Internal - Company specific(Customized metrics including EP, CVA, CFROI, TBR, and other value drivers),External - Industry specific,Short-termTradeoffs,What metrics do we subscribe to?,Shareholder Value Enhancement Imperatives,Identification of value centers within the organization Evaluation of strategic alternatives (harvesting, divesting, 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 of value creation Rewards aligned with “value based” performance,Generic Value Driver Tree,Commitment,Competencies,Capabilities,Implementation Through People,Financial Results,Operational Outcomes,Balanced Measures,Example,FinancialMarginsCost ReductionProject Profitability ClientClient SatisfactionPerceived Value of Service OperationalOn-time Completion RatesBidding Success Rates EmployeeEmployee Survey ResultsTurnover Rates,EVA,PricingFixed Cost ContractsCost Plus ContractsCurrency Exposure,Market PositionCompetitive DifferentiationPerceived Value of Service Customer RelationshipsSales Force Effectiveness,Project LoadIndustry SectorGeographic PenetrationBidding Success RatesNew Ordersand Order BacklogFundedNonfunded,Profit MarginEBITDA/RevenuesNet Income/Revenues,TurnoverRevenues/Investments,Overhead/Expense Mgmt.Marketing/AdministrativeAccounts ReceivableCurrent LiabilitiesFixed Capital,Use of Debt LeverageInvestor RelationsAnalyst Coverage,GrowthRevenues,Cost of CapitalFinancial LiquidityCapital AccessibilityMarket Alternative Returns,Strategic Alliance/Joint VenturesMarket FocusInvestment CapitalBranch OfficeProject Working CapitalBusiness Dev. Costs,Service Delivery,Project ExecutionOverall Contract ManagementTechnological CapabilitiesSubcontractor Mgmt. Operating LeverageLabor Productivity,Business Processes,Translating Value into Management Systems,Contents,HR Reinforces,Analyze critical value driversReview performance metricsAlign performance metrics to objectives,Realign Business Processes Target setting Planning Budgeting Resource allocation Reporting Performance assessment,Align business unit-specific processesAlign decision making processes based on value priorities Communicateto investors,Implement on corporate and business unit levelCommunicate value-driven decisionsEducate, inform, and reinforce,Senior level executive commitmentBroad operational buy-in Communication of philosophy and general strategic objectives,Broad educational initiative for managersAlignment of communication,Alignment of performance criteriaInput for ease of implementation,HR-alignment of all functions, especially incentive design and performance management,Sharing the “Learnings”CommunicationBusiness unit-specific alignment of HR programs,Broad educational effort for all employeesFurther HR-systems alignment,The HR-function can significantly contribute to the success of the implementation,Value-Creating Behaviors, Ownership culture, Priorities, Decisions, and Measurement,Linking Organizational Systems to Value Drivers has Multi-point Linkages,VBM-Aligned ManagementProcesses and Structure,Corporate CultureVBM-Alignment,Desired Value-Creating Behaviors and Competencies,HR Policiesand Management,Employment Relationships(“Whats the deal?”),Organization,An Aligned Organizational Strategy will have an Impact on Business Value Drivers,Financial Value Drivers,Organizational Impact,Increased market share,Revenue growth,Profit margins,Asset turnover,Debt/ equity ratio,Risk profile,Business expansion,Improved competitiveness,Operational efficiency,Organizational effectiveness,Optimal capital structure,Growth,Returns,Cost of Capital,Value drivers,Leadership is responsible for the expected behavioral changes,Critical Questions that Link Management Systems to VBM,Critical QuestionsHas the desired culture been articulated?Does 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 Corporate Culture,Person Oriented,Performance Orientation,We 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 Oriented,Results Oriented,People Perspective,We focus not 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 Perspective,Employees identify primarily with our organization.,Employees identify primarily with their professions.,Company Oriented,Profession Oriented,Openness Perspective,There 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 are encouraged. Newcomers feel at home soon after arrival.,Closed System,Open System,Control Orientation,Activities, results, and procedures are developed, managed, and maintained by the organization.,Individuals, teams, and smaller organizational units take accountability for their own activities, results, systems, and procedures.,System-Driven,Self-Driven,Flexibility,We adhere to well-established standards and procedures to deal with customers.,Standards and procedures are flexibly applied to meet customer expectations,Normative,Pragmatic,Job Oriented,Aligning Talent Management Practices Based on Corporate Culture,TalentManagementPrioritiesandAction,Alignment IssuesHaving the right people doing the right things to reach business goals,Engagement IssuesCreating the environment where the right people want to be,Alignment Priorities,Engagement Priorities,Learning,Rewarding,Staffing,Performing,Organizing,TalentManagementPractices,Culture,HR-Alignment Follows the VBM Implementation Process,HR-VBM-Audit,HR-Alignment,Aligning HR to VBM: Implementation is a Complex Process,Objectives,Tools,Outcomes,Gathering data on business issues with VBM implementationAssessing the gap between corporate and business unit perspectives,Analysis of current state concerning:CultureBusiness ProcessesValue Enhancing Behaviors,Design of the future state in respect to:Long-Term Business GoalsBusiness ProcessesCultureBehaviors,Structured interviewExisting data and material analysisInput from strategy department or finance,Define expectations from CorporatePerspective on value creationDefine main problems of business unit managersOwnership for the problemsExpectations for HR Role,Cultural assessment surveyBusiness process monitoring and mappingStructured interviews and design workshops,Use of tools prepared in previous stepDesign workshops,VBM Culture GapCheck of existing business processes - VBM related with an HR-impactCheck of HR-Business processes and programsAssessment of behaviors enhancing/hindering value creation,Cascading value-driver tree to business unit levelsSecuring understanding for different unit contributions to value creationCompensation alignment with VBM,Value-driver generationIndustry benchmarksLink to corporate objectivesIncentive design, Performance design,Action plan concerning needed changes in the respective areas,Definition of business unit-specific value driversDefinition of HR-inputs for defined-value driversDefinition of main HR-programs to reinforce strategy and value creation, e.g Compensation, Performance Management,Aligning HR to VBM Implementation is a Complex Process,Objectives,Tools,Outcomes,Definition of the workforce strategyAlignment of all HR systems,Definition of value enhancing HR structure and service deliveryDivision of tasks between corporate and business unit,Definition of a change management planDefinition of transition management planAssignment of responsibilities,Best practicesDesign tools and workshops,Best practicesOrganizational design toolsCost analysis (Activity based)Process mapping,Action plan structure concerning needed changes in the respective areasImplementation tools for managers,Positioning of HR as partner for business units for VBM implementationDefinition of roles and services provided,Assessing the VBM-implementation planFeedback and milestone checkFocus accountability,Engagement modelContinuous reporting and communications,Definition of corrective measuresDefinition of VBM impact on the engagement of the workforceVBM-based behaviorVBM-HR-Measurement System,Definition of needed changes in:StaffingRewardingLearningLeadershipPerforming,Change plan including:Communication strategyEducation strategyLeadership alignmentTransition strategy,Critical Factors Driving Successful Implementation of VBM,Strong support 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 Worldwide,AuklandBangaloreBangkokBeijingGurgaonHong KongJakartaKuala LumpurManila,MelbourneMumbaiNew DelhiSeoulShanghaiSingaporeSydneyTokyoWellington,Asia/Pacific,More than 12,000 associates in 81 offices in 36 countries around the world,Our Standing,About HewittA global management consulting firm specializing in human resource solutions. Our strength is helping organizations identify and implement people solutions using both the strategic and tactical approaches. Privately held since 1940; recognized as a leading employerGlobal revenue of more than US$1.3 billion in FY 2000Among the top 20 global management consulting firmsIn the top 200 of Forbes magazines “Top 500 Private Companies” “Wrote the book” on workforce management, The Talent Solution: Aligning Strategy and People to Achieve Extraordina