Most people who come to work each day want to do a good job. But what is ‘good’?
The way performance is measured can make a dramatic difference to the decisions managers make and the direction in which they take the company.
For any business that wants to enjoy sustained increases in the value of the enterprise, the right measures of performance must be chosen, one that will guide staff at all levels to create wealth, rather than destroy it.
Unfortunately, the most popular financial metrics like EBITDA and EPS can encourage managers to invest capital at low rates of return and destroy wealth.
We work with Boards and senior managers to research the key drivers of wealth creation for their business and then help implement performance measures that link transparently and reliably to increases in the value of the firm. These measures can then be used in planning and setting targets and in monitoring and rewarding performance and be linked to key performance indicators down through the business.
For more on our thinking on performance measures click here.