The Value Mindset
Returning to the First Principles of Capitalist Enterprise
Published on 7. September 2011
452 pages
978-1-118-16091-6 (ISBN)
Description
A groundbreaking book on building long-term wealth forstakeholders
As creator of the Wealth Added Index (WAI), Stern Stewart's ErikStern has become a beacon for creating shareholder value within thecurrent storm of corporate malfeasance and poor performance. TheValue Mindset shows readers how to develop this way of thinking byblending individual manager incentives with the proper corporatestructure and the willingness to pursue value discipline over thelong term. Filled with practical concepts that have provedthemselves in the real world, this book shows readers how they cantransform a company into an organization that can deliver value andreturns to its shareholders. The Value Mindset helps readersdevelop this mindset-as well as implement it-by detailing themetrics that are necessary for any manager to measure and monitorvalue creation within the firm.
Erik Stern (London, UK) is a Senior Vice President at Stern Stewart& Co., based in London. He has designed and implementedprograms for companies in several industries in the United Statesand Europe. Mike Hutchinson (London, UK) is a Vice President atStern Stewart & Co., based in London. He worked previously forthe BBC and the Consumers' Association.
Reviews / Votes
"...this thought-provoking book is a worthy addition tothe bookshelf." (Financial Director, July 2004) "...has much to say that is sensible andprofound." (Financial Times, 27th May2004)More details
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Erik Stern | Mike Hutchinson
The Value Mindset
Returning to the First Principles of Capitalist Enterprise
Book
03/2004
1st Edition
Wiley
€30.90
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Persons
ERIK STERN is managing director of European operations and asenior vice president at Stern Stewart & Co., based in London.He has designed and implemented EVA® programs for companies inindustries throughout the United States and Europe. Erik coauthoredthe EVAluation report on cascading EVA to shop-floor employees, TheCapitalist Manifesto, and has written for a range of publications,including the Financial Times and Sunday Times in the UK,Berlingske Tidende in Denmark, El Mundo in Spain, and The Marker inIsrael. Erik has appeared on TV, including Sky Business News andBloomberg. He has an MBA from the University of Chicago and a BAfrom Brown University.
MIKE HUTCHINSON is a professional writer who workedpreviously as vice president, marketing, for Stern Stewart &Co. in Europe, as well as for the BBC and Consumers'Association. He has written for a range of publications throughoutEurope and the UK, including the Financial Times, Sunday Times, andthe Mirror, and has appeared on TV. He has an MA from TrinityCollege, Cambridge.
Content
Preface.
Acknowledgments.
Introduction.
PART ONE: VALUE MINDSET.
1. A Revolution in Value.
2. The Efficiency of the Market.
3. Other People's Money.
4. Corporate Governance in Crisis.
5. Back to Basics.
6. Introduction to Incentives.
7. Growing Value.
8. Focus on Value.
9. The Mindset of Success.
PART TWO: STRATEGIC RECONFIGURATION--UNLEASHING HIDDENVALUE.
10. Configuring Companies.
11. Changing Organizational Architecture.
12. Strategic Reconfiguration in Theory.
13. Strategic Reconfiguration in Practice.
14. The Growth of Content.
15. The Benefits of Strategic Reconfiguration.
PART THREE: FINANCIAL ARCHITECTURE--CHALLENGING EXISTINGTHINKING.
16. Paying for Size.
17. Acquisitions.
18. Outcomes as Real Options.
19. Divestments.
20. Initial Public Offerings.
21. Financing Issues.
PART FOUR: MOTIVATING MANAGERS AND EMPLOYEES TO DELIVERVALUE.
22. Awarding Decision Rights.
23. Fixed Pay and Incentives.
24. Balancing Incentives.
25. Do Options Encourage Value Creation?
26. The Value of Variable Pay.
27. Franchising as a Value Mindset.
28. Share Options.
29. Motivating All Employees to Create Value.
30. The Benefits of Variable Pay.
PART FIVE: TAKING STRATEGIC RECONFIGURATION FURTHER--THEPUBLIC SECTOR.
31. The State We're In.
32. How Did the State Grow So Large?
33. Let Us Build Up a Decent World.
34. Reconfiguring Global Relations I.
35. Reconfiguring the State.
36. Reconfiguring Global Relations II.
PART SIX: CONCLUSION.
37. Opportunity for All.
38. A Final Word.
Appendix Miscellaneous Industries.
Index.
