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Economic Value Added (EVA) Education and Training

Expand your knowledge and ability to utilize economic value added analysis

By Gail L. Perry, Freelance Writer / MSW Life Coach
Economic Value Added (EVA), registered trademark of Stern Stewart & Co., is a performance metric used to measure the economic profit of a company. To measure the “true” profit of a company, calculate the operating profits (minus taxes) and subtract a reasonable amount for capitol employed. The resulting figures give shareholders an indication of their investment value.

Business EVA places value in capital as a tangible object. Therefore, understanding and effectively using economic value analysis encourages employees to seek investments with a viable rate of return. It is about increasing the spread between the return and cost of capital to reduce excess capital. Consider the following options to bring economic value added (EVA) education and training to your business:

1. Explore course offerings that feature the economic value added model.

2. Evaluate economic value added advantages with finance software.

3. Consider professional trainers to teach the economic value added formula for success.

 

See the different courses offered for economic value added (EVA)

Offering courses to your employees to help them understand and utilize the benefits of EVA can bring a new focus to the bottom line of your business. With everyone looking for the same gain, employees and managers make choices that could lead to greater coherence and success. Pay attention to the level of the course offered and choose courses aligned with the employee's finance knowledge.
Try: Financial Management Training Center offers an online short course focused on value-based finance geared toward those with finance knowledge. Cortell International offers a few options for EVA courses ranging from two hours to one day. Shaws-Larson Associates has seminars and workbooks, and soon they will offer e-learning courses for EVA knowledge.

Examine economic value addition software options

Software programs vary slightly by details, but the focus is on improving your business financially. Often software programs use economic value added calculation to evaluate and pinpoint weaknesses and strengths. Software is useful for businesses and employees who have an understanding of finance and want help pulling all the calculations and evaluations together. Most programs streamline efforts with simple installation and data entry.
Try: For business and investment valuation software (including EVA), click on SoftwareFeast. For business valuation software utilizing EVA focused on analysis and improvement, see Cash Focus.

Talk with training professionals with an economic value added example of application

There are advantages to choosing a business that specializes in training employees. They offer on-site training, seminars, online classes and/or custom programs focused on your business needs. They strive to help employees understand and utilize the valuation system to the greatest benefit of your business.
Try: Value Creation Group explains EVA plus helps improve your business focus and processes. IDG Capital Group has options including on-site corporate workshops, seminars and online training open to finance and non-finance employees. For advanced seminar training, see the National Center for Continuing Education.

 

  • Seek assistance from professionals who are aware of economic value added disadvantages, while capitalizing on the advantages.

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