Unformatted text preview: This will give the shop-level employees a connection to EVA targets. 2. How could a company identify value drivers for its overall Economic Value Added metrics? The author suggested the concept of value mapping in identifying value drivers. Value mapping involves breaking down the components of EVA to the point at which the drivers of the value creation become relevant to the employees. 3. What roles should education and reporting play in the process of using value drivers? To achieve the overall goals, employees at all levels must understand how the process is working and how the value driver will affect overall EVA. They need to understand how their control will be affecting the overall performance. Management has to be able to provide reporting systems to track performance on the drivers and to make metrics easy to measure and understand. If the operational employees feel disconnected from the overall EVA, they will not have the proper motivation....
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This note was uploaded on 09/13/2011 for the course FIN 6301 taught by Professor El-asmawanti during the Fall '09 term at University of Texas at Dallas, Richardson.
- Fall '09