Page 142 - APM Integrated Workbook STUDENT S18-J19
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Chapter 9
7.2 Measures used in VBM
1. EVA
Primary measure.
A positive EVA
indicates value
creation.
3. SVA (shareholder
value added)
Uses discounted
cash flow
techniques.
Three key
Values whole measures
business rather than
one project.
7.3 Implementing VBM
Steps
1 Strategy developed to maximise value.
2 Key value drivers identified and targets set.
3 Plan developed to achieve targets.
Performance metrics and rewards for all levels of staff aligned to
4
targets.
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