Economic value added. Concepts. Approaches. Instruments

Abstract

KPMG is the international chain of advisory, tax and audit service companies. In June, 2010 it conducted an open conference devoted to the economic value added, its principles and methodology. The conference became a significant event for Russian business and discovered  common acceptance for necessity of new and up to date concepts of management. Two leaders of Stern Stewart & Co, the first rate consulting company, were invited especially for the event. Appearance of Joel Stern, founder of the Company, became unprecedented occurrence for such meetings in Russia. Stern Stewart & Co (www.sternstewart.com) is a leading strategic consultancy and value management company. It was founded in 1982, New York, and became a pioneer in the business economics and applied corporate finance. In the late eighties the company invented and took out a patent the concept of management based on economic value added (EVA®), which today presents one of the most  developed and popular concepts in real business. Stern Stewart & Co  is based in many countries in the North America, Europe, Latin America, Australia, China, India, SAR and in the others. Russia is virtually a single country where analysis based on the value and consultancy services applying value based management are almost  not presented. Joel Stern, the founder of EVA® concept, presented the main report devoted to the company’s system of management. Due to the KPMG request Corporate finance center of SU-HSE (www.cfcenter.ru) and Performance and Technology KPMG in the May-June 2010 conducted joint investigation devoted to the Russian companies’ practices of management and analysis of factors of their value. The results of the investigation were also presented on the conference.