Management commitment - gaining and using it

• The whole EVA process begins normally with CFO´s or CEO´s interest in the subject (often investors or colleagues from other companies have raised the interest)
• First step in implementing EVA should be informing the whole management team thoroughly about the subject
  • It is more than likely that some managers are suspicious at the beginning and therefore it is very important to make sure that everyone understands the consept thoroughly (discussing essential - not one-sided informing)
    • After all the managers know exactly what EVA is all about and what differences there are compared to other measures like EPS and ROI it is very unlikely that someone is against the consept any longer
  • After gaining the commitment of upper management it is very impoortant to use it
    • CEO and all the division managers etc. should signal prominently to their subordinates that they support and believe in the consept

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