Click on one of the processes shown below, for more information:
 

Underlying Principles

• Mold the performance measurement framework to the way in which the business creates shareholder value.

• Keep it simple, but accurate and “game-proof.”

• Develop a good fact-base: where is value created (destroyed) in the business; what are the key drivers over which management has control?

• Identify where new wealth can be created – expand the core; grow new businesses; develop innovation capabilities; improve operating efficiencies.

• Is the strategy differentiated – if so, by what – unique competencies, geography, imbedded frictions in the supply chain, etc?

• Use the VBM insights to “inform” and to help craft the strategic architecture.

• Set an aspirational objective – “we will double our share value every 5 years.”

• The MIC system is both meaningful (I can make real money) and controllable (I can determine my own destiny).

• The MIC system is value-sharing – namely owners and managers win when the value of the business increases.

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