VBM Thought Leader: Joel M.
Stern and John S. Shiely
The EVA Challenge - Implementing Value-added
Change in an Organization
Joel M. Stern: biography / resume / curriculum vitae
Joel M. Stern has been
the managing partner of Stern Stewart & Co. since its founding in 1982.
Prior to that he
served as president of Chase Financial Policy, the financial advisory arm of
Chase Manhattan Bank, which he joined after completing his graduate studies
in economics and finance at the University of Chicago.
Mr. Stern has been a
pioneer and leading advocate of the concept of managing for shareholder
value and is an expert in implementing EVA.
The EVA Challenge: Implementing Value-added Change in an Organization
This book provides
insight into implementing EVA and into the practical implementation of
shareholder value (EVA)
orientation at beginners level.
Authors Joel Stern and
John Shiely advocated a revolution in the way companies are valued and
measured. They make a convincing case for using EVA ("Economic Value Added")
as the primary measure of corporate performance. The authors argue that the
SEC's yardstick for corporate reporting, the "Generally Accepted Accounting
Procedures" (GAAP), was designed to protect lenders by depicting a company's
liquidation value. As such, US GAAP provides an overly conservative and only
marginally accurate picture of financial health. EVA principles - at least
according to the consultants who advise companies on using them - evaluate
intangible assets more realistically and correspond more closely to stock
executives who seek an introduction to implementing EVA, and to investors interested in
understanding how value is created and maintained.