By Ivy McLemore. But if you develop meaningful business metrics, you can greatly improve the odds. By Tad Leahy, Business Finance June 2000, Page 49. Value-based management says, in a nutshell, the key to increased shareholder value lies in the integration of strategic planning, performance measurement and compensation. By Tad Leahy Business Finance , Supplement to September 2000, Page 6 Targeting the metrics most relevant to a company s strategy and allocating funding where it will do the most good are essential for excellent long-term performance and overall financial health.
Nonfinancial metrics can greatly impact a company s ability to create shareholder value.
But developing key metrics is no slam dunk. Here s how finance can apply business intelligence to the mother lode of available data, improve the forecasting process and create performance reports that drive profitability.