If we apply value principles to our business, how should we measure performance; what insights do we gain about how and where we create value today?

Key Questions
 

• How should we convert traditional accounting statements into economic, value-based statements that capture the way the business create shareholder value?

• What is our cost of capital and how can we apply it to different types of projects, countries and economic conditions?

• What businesses create value today; what businesses destroy value?

• Do our competitors create economic profit?

• What has to change for the weak businesses to justify new investment; what has to remain the same for strong businesses to continue to grow?

• Where in the value chain do we create value? Is the value sustainable?

• Does our financial analysis of where we create economic profit confirm to our perception of our competencies and skills?

• Have we established a quantifiable link between economic profit and operational drivers (customer satisfaction, employee commitment, etc)

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