Showing papers in "The Antidote in 1996"
TL;DR: In this article, the authors investigate the shareholder value approach as a corporate management central objective and identify three different approaches to corporate governance: the monistic Anglo-American approach, the dualistic approach of Germany and France, and the pluralistic approach, peculiar to Japan.
Abstract: Investigates the shareholder value approach as a corporate management central objective. Alludes to the similar cultural patterns in other, well‐established economies of the English‐speaking world such as: Canada, New Zealand and Australia. Identifies three different approaches to corporate governance: the monistic Anglo‐American approach — regarding firms as owners' private property; the dualistic approach of Germany and France — prioritizing shareholders' interests but in which employees' interests are taken into account; and the pluralistic approach — peculiar to Japan — which assumes the firm belongs to its stakeholders. Uses figures to emphasize main points of interest such as would be deemed important within the sphere of this article.
11 citations
TL;DR: In this paper, a comparative analysis about the differences between the balanced scorecard and other, more traditional, financial accounting measures, such as ROI and EPS that may give misleading signals is presented.
Abstract: Gives a comparative analysis about the differences between the balanced scorecard and other, more traditional, financial accounting measures, such as ROI and EPS that may give misleading signals. Advocates that the balanced scorecard's advantages — such as giving managers the ability to view performance simultaneously in several areas. Itemizes the four main perspectives as: the customer; the internal; innovation and learning; and financial. Cautions that the four goals and measures must be reflective of the company's specific view of the world and what its own critical success factors must be, though even with these excellent balanced scorecard measures a winning strategy is not guaranteed.
9 citations
TL;DR: In this paper, the authors discuss the strong links between employee objectives in the UK and the USA at Amoco and highlight the importance of cost leadership, international growth, environmental commitment, and continuous renewal.
Abstract: Details the strong links between employee objectives in the UK and the USA at Amoco. Posits that Amoco has six overarching strategic themes: cost leadership; international growth; environmental commitment; and continuous renewal, which are designed to realize Amoco's long‐term vision. Includes a figure to show how the strategic planning committee covers the relevant areas of the company. Profiles how Amoco signals belief in the performance measurement process, by having its scorecards alongside others in the internal staff canteen.
7 citations
TL;DR: In this paper, the authors describe the performance pyramid model and give the reader good advice on all areas of the pyramid's coverage, and provide a ten-point guide to help a company measure up.
Abstract: Chronicles the above‐named model, which was invented by two consultants in 1991 and updated in 1995. Uses a figure to show exactly what and how the performance pyramid is, and the way it works. Shows the three levels (top, upper management; middle layer, middle management; and lower management or supervisor layer at the bottom). Describes how the pyramid works and gives the reader good advice on all areas of the pyramid's coverage. Closes with a ten‐point guide to help a company measure up.
4 citations
TL;DR: This paper defined market value added (MVA) as equitable with shareholder wealth and answered the question "How can the operator's energies be better directed to gain for the company?", which brings in economic value added.
Abstract: Concentrates on the best known and most model of shareholder values — developed by Stern Stewart, financial advisers — that has aroused, in equal measures, criticism and enthusiasm. Defines market value added (MVA) as equitable with shareholder wealth and answers the question ‘ How can the operator's energies be better directed to gain for the company?’, which brings in economic value added (EVA) — Stern Stewart's proprietary financial measure on economic rent. Charts, by aid of full explanation and use of figures, the use and definition of EVA and states EVA is ‘the single best measure of wealth creation’. Quantifies the contents with a final comment page using further figures for added emphasis in explanatory form.
4 citations
TL;DR: The authors compares thinking and research into employee attitudes in the UK, with regard to psychological contracts, and concludes that a lack of commitment to the business, among its employees, creates a competitive disadvantage which no company or organization can afford in the long term.
Abstract: Compares thinking and research into employee attitudes in the UK, with regard to psychological contracts. States these are the contracts of employment that are the understandings between employees and employers, whether written or unwritten. Chronicles, in depth, the problem, implications, trends, consequences and other pertinent details. Charts both management theory and management research in full, using four tables to aid in an explanation of the conclusions. Concludes that a lack of commitment to the business, among its employees, creates a competitive disadvantage which no company or organization can afford in the long term.
3 citations
TL;DR: In this paper, a three-step performance measurement model based on an organization's most important stakeholders: the problem, the possible solution, and underlying assumption is presented, with a detailed explanation of the model.
Abstract: Chronicles a three‐step performance measurement model based on an organization's most important stakeholders: the problem; the possible solution; and underlying assumption. States that the identification of the most important stakeholders, usually owners, customers and employees, but also extending to regulators, suppliers and local communities, is first. Graphic use of figures aids in explanation. Posits that periodic assessment is required to implement regular assessment of improvement and to develop regular reporting processes.
2 citations
TL;DR: In this paper, the authors describe value-based management (VBM) as it is approached by Boston Consulting Group (BCG) and uses figures to add emphasis to this system.
Abstract: Chronicles value‐based management (VBM) as it is approached by Boston Consulting Group (BCG) and uses figures to add emphasis to this system. States that the yardstick used by BCG is total shareholder return (TSR), giving historic appraisal and comparison between companies. Demonstrates that TSR is an objective function that is appropriate only at the corporate level. Believes that companies with top quartile TSR's usually have some factors in common, e.g. good management, sound strategies and competitive operating skills. Concludes BCG have no particular doctrine as consultants but try to work with both managing director and finance director to ease their individual company concerns and always focusing on behavioural consequences of making changes.
1 citations
TL;DR: In this paper, the authors identify high performers/excellent companies, who are repeatedly undermined through high failure rates in identified companies, and suggest management needs to understand differing groups' expectations and lists stakeholders tolerance zone as follows: shareholders - have high tolerance but rarely active and inclined to sell; customers - potentially most powerful group owing to their spending power; managers - affected by salaries, etc. plus peer group jealousies; employees - more company dependent than either managers or shareholders; creditors - banks and other lenders have power to liquidate the firm; and others - suppliers, government, local community
Abstract: Undertakes to identify high performers/excellent companies, who are repeatedly undermined through high failure rates in identified companies. Suggests management needs to understand differing groups' expectations and lists stakeholders tolerance zone as follows: shareholders — have high tolerance but rarely active and inclined to sell; customers — potentially most powerful group owing to their spending power; managers — affected by salaries, etc. plus peer group jealousies; employees — more company dependent than either managers or shareholders; creditors — banks and other lenders have power to liquidate the firm; and others — suppliers, government, local community and minority groups — on which business survival depends.
1 citations
TL;DR: The authors argued that companies recruit more sales staff as a response to a slow down in revenue growth, drop prices to new customers, adding new products, and this reduces productivity at a high cost.
Abstract: Argues the case for developing loyalty among customers, as applied to stakeholders and including investor loyalty. Uses an illustration of a man wagging his finger at a dog as a dig at present thinking, regarding the social contract between employers and employees. Describes how companies recruit more sales staff as a response to a slow down in revenue growth, drop prices to new customers, adding new products. States this reduces productivity at a high cost — from inexperienced sales staff, unhappy customers pressured into making purchases subsequently regretted, or customers who price‐hop, plus higher production line costs — all of which lead to the company being worse off and prospects damaged in the long‐term.
1 citations
TL;DR: In this article, the authors investigate how organizations pick which non-financial measures to use to enable managers to know what requires attention, and what can be ignored for now, and highlight the potential pitfalls of running down with use and stress the importance of looking at internally generated criteria in the light of external values.
Abstract: Investigates how organizations pick which non‐financial measures to use to enable managers to know what requires attention, and what can be ignored for now. Lists out in a table format these essential differences between financial and non‐financial measures. Stresses there are two potential pitfalls: first is the tendency for non‐financial measures to run down with use; and, second, stresses the importance of looking at internally‐generated criteria in the light of external values. Confirms that reiteration of essential differences is a strong reminder of the ease in which non‐financial measures can multiply.
TL;DR: English Nature, a public body financed by grant-in-aid from the UK Department of the Environment, was formed when the former Nature Conservancy Council for Great Britain was disbanded five years previously as discussed by the authors.
Abstract: Elaborates on English Nature, a public body financed by grant‐in‐aid from the UK Department of the Environment, which was formed when the former Nature Conservancy Council for Great Britain was disbanded five years previously. Pinpoints that four types of performance measures are used by English Nature and these are: quantified corporate targets; strategic indicators; service standards; and soft indicators. States results show that English Nature is still quite risk averse ‐ in part due to Government constraints and procedures. Closes with a question and answer panel with Andy Brown, Chief Officer of the Joint Nature Committee.
TL;DR: The authors reviewed some of the economic arguments for taking environmental policy development seriously and concluded that positive aspects of the raised profile of environmental issues are becoming clear, and organizations recognize that it is more sensible and economically better to be green.
Abstract: Reviews some of the economic arguments for taking environmental policy development seriously. States that enhancing a positive environmental image, integrating environmental considerations into the corporate strategy, realizing new market opportunities, are all seen as ways for firms to grow their profits. Believes the environmental challenge need not be seen only in terms of costly regulations, but as one that can offer greater opportunities. Concludes that positive aspects of the raised profile of environmental issues are becoming clear, and organizations recognize that it is more sensible and economically better to be ‘green’.