An Excerpt From:
The Value Approach to Demutualization
By Eleanor Bloxham
Published in National Underwriter, October 26, 1998
"Value management is fast winning acceptance by analysts and institutional investors as the standard in corporate governance. The value metrics used in this type of management
system help an organization determine where value has been created and where value has been destroyed."
"One area where value management is different is the focus on value creation. A value management system eliminates the problem of more traditional measurement systems that tend to involve a number of measures for managers to balance but provide no or arbitrary mechanisms for doing so."
"Because of the clarity created, the organization is better able to achieve results, that prior to its use, would not have been possible. In this way, value management provides for an integrated and
focused corporate governance system that can unleash the organization's potential."
"Management can better communicate their game plans to investors in value terms. This can make it possible to win investor and analyst support for longer-term investments and to explain occasional blips in business segment results. As a result, investors and analysts tend to discount the stock less for "risk" in the information flow. Most importantly, however, because analysts and institutional investors appreciate the impact of a value management system on the organization, the rewards are stock prices that more realistically reflect the full value of the company."