- Improving capital allotment and overall business performance
- Encouraging greater entrepreneurial behaviour among employees
- Making business outcomes more predictable
- Avoiding “undesirable short term behaviours” seen in the multi-step variable plan that exists in most companies.
- Greater alignment among various functions and alignment to the vision of the organisation.
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Buy-in from every stakeholder that EVA should be the single parameter being measured across the organisation.
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A simple yet effective cascade process i.e. E^X^ simulation that broke down EVA for every function within the organisation in a language that they understood.
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Integrating it with the culture – Every decision including reduction of inventory, material value engineering, renegotiation of vendor terms, changing the hiring pie mix taken was measured in terms of its impact on EVA thus improving performance orientation and alignment with larger goals
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Collaborative work practices – Shared goals, clear dependencies and understanding of the collective impact on EVA ensured the teams chase one common parameter instead of their individual departmental goals.
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Clear linkage to Performance incentives, ESOPs and rewards in form of opportunities to gain more with Delta improvement in EVA.
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