“Corporate Performance Measurement” – User Story Backlog – Catering “Economic Value Added (EVA)”

1. User Story: As a financial analyst, I want to be able to calculate Economic Value Added (EVA) for our company, so that we can measure our corporate performance accurately and make informed financial decisions.

– Precondition: The necessary financial data, including net operating profit after tax (NOPAT), invested capital, and the cost of capital, must be available.
– Post condition: The EVA calculation is completed and the result is available for analysis.
– Potential business benefit: EVA provides a comprehensive measure of a company’s financial performance, enabling better decision-making and resource allocation.
– Processes impacted: Financial analysis, budgeting, and strategic planning.
– User Story description: As a financial analyst, I want to be able to calculate EVA by subtracting the cost of capital from NOPAT, and dividing the result by invested capital. This will allow us to assess the true economic value generated by our company.
– Key roles involved: Financial analysts, CFO, senior management.
– Data objects description: Financial statements, including income statement and balance sheet, are required to calculate EVA. Additionally, the cost of capital, invested capital, and NOPAT need to be available.
– Key metrics involved: EVA, NOPAT, invested capital, cost of capital.

2. User Story: As a manager, I want to be able to compare our company’s EVA with industry benchmarks, so that we can assess our relative performance and identify areas for improvement.

– Precondition: Industry benchmark data for EVA must be available.
– Post condition: The company’s EVA is compared with industry benchmarks and the analysis is available for review.
– Potential business benefit: Benchmarking EVA against industry peers helps identify areas of competitive advantage or weakness.
– Processes impacted: Competitive analysis, strategic planning.
– User Story description: As a manager, I want to be able to access industry benchmark data for EVA and compare our company’s performance against it. This will provide insights into our relative performance and help us identify areas for improvement.
– Key roles involved: Managers, CFO, competitive intelligence analysts.
– Data objects description: Industry benchmark data for EVA, company’s EVA.
– Key metrics involved: EVA, industry benchmarks.

3. User Story: As a CFO, I want to be able to track changes in our company’s EVA over time, so that we can monitor our financial performance and make adjustments as needed.

– Precondition: Historical financial data, including previous EVA calculations, must be available.
– Post condition: The company’s EVA trend analysis is completed and available for review.
– Potential business benefit: Tracking EVA over time helps identify trends and assess the impact of strategic decisions on financial performance.
– Processes impacted: Financial analysis, strategic planning.
– User Story description: As a CFO, I want to be able to analyze the historical trend of our company’s EVA by comparing it with previous periods. This will provide insights into the effectiveness of our strategic decisions and help us make adjustments if necessary.
– Key roles involved: CFO, financial analysts, senior management.
– Data objects description: Historical EVA calculations, financial statements.
– Key metrics involved: EVA, trend analysis.

4. User Story: As a financial analyst, I want to be able to perform sensitivity analysis on our company’s EVA, so that we can assess the impact of different scenarios on our financial performance.

– Precondition: Assumptions and variables for sensitivity analysis must be defined.
– Post condition: Sensitivity analysis on EVA is completed and the results are available for review.
– Potential business benefit: Sensitivity analysis helps identify the key drivers of EVA and assess the impact of changes in assumptions or variables.
– Processes impacted: Financial analysis, scenario planning.
– User Story description: As a financial analyst, I want to be able to perform sensitivity analysis on our company’s EVA by changing assumptions and variables. This will allow us to assess the impact of different scenarios on our financial performance and make more informed decisions.
– Key roles involved: Financial analysts, CFO, senior management.
– Data objects description: Assumptions and variables for sensitivity analysis, EVA calculations.
– Key metrics involved: EVA, sensitivity analysis.

5. User Story: As a CEO, I want to be able to communicate our company’s EVA performance to shareholders and investors, so that they can understand the value we are creating.

– Precondition: EVA performance data must be available.
– Post condition: EVA performance report is prepared and available for communication to shareholders and investors.
– Potential business benefit: Effective communication of EVA performance helps build investor confidence and attract potential investors.
– Processes impacted: Investor relations, financial reporting.
– User Story description: As a CEO, I want to be able to prepare a comprehensive report on our company’s EVA performance, including the calculation methodology, key drivers, and comparative analysis. This will enable effective communication with shareholders and investors.
– Key roles involved: CEO, CFO, investor relations team.
– Data objects description: EVA performance data, financial statements.
– Key metrics involved: EVA, comparative analysis.

6. User Story: As a financial analyst, I want to be able to conduct scenario analysis on our company’s EVA, so that we can evaluate the potential impact of different strategic initiatives on our financial performance.

– Precondition: Assumptions and variables for scenario analysis must be defined.
– Post condition: Scenario analysis on EVA is completed and the results are available for review.
– Potential business benefit: Scenario analysis helps evaluate the financial impact of different strategic initiatives and prioritize investment decisions.
– Processes impacted: Financial analysis, strategic planning.
– User Story description: As a financial analyst, I want to be able to perform scenario analysis on our company’s EVA by considering different strategic initiatives and their potential financial impact. This will allow us to evaluate the feasibility and prioritize investment decisions.
– Key roles involved: Financial analysts, CFO, senior management.
– Data objects description: Assumptions and variables for scenario analysis, EVA calculations.
– Key metrics involved: EVA, scenario analysis.

7. User Story: As a CFO, I want to be able to integrate EVA calculations into our company’s performance management system, so that we can align financial incentives with value creation.

– Precondition: Performance management system must be in place.
– Post condition: EVA calculations are integrated into the performance management system and the incentive structure is updated accordingly.
– Potential business benefit: Aligning financial incentives with EVA helps drive value creation and motivates employees to focus on improving financial performance.
– Processes impacted: Performance management, incentive compensation.
– User Story description: As a CFO, I want to be able to integrate EVA calculations into our company’s performance management system, so that financial incentives are aligned with value creation. This will help drive better financial performance and motivate employees to focus on value-added activities.
– Key roles involved: CFO, HR, senior management.
– Data objects description: Performance management system, EVA calculations.
– Key metrics involved: EVA, performance management metrics.

8. User Story: As a financial analyst, I want to be able to conduct competitor analysis using EVA, so that we can assess the relative financial performance of our competitors and identify areas of competitive advantage.

– Precondition: Competitor financial data, including EVA calculations, must be available.
– Post condition: Competitor analysis using EVA is completed and the results are available for review.
– Potential business benefit: EVA-based competitor analysis helps identify areas of competitive advantage or weakness and informs strategic decision-making.
– Processes impacted: Competitive analysis, strategic planning.
– User Story description: As a financial analyst, I want to be able to analyze our competitors’ financial performance using EVA, comparing their EVA calculations with ours. This will provide insights into their relative performance and help us identify areas of competitive advantage or weakness.
– Key roles involved: Financial analysts, CFO, competitive intelligence analysts.
– Data objects description: Competitor financial statements, EVA calculations.
– Key metrics involved: EVA, competitor analysis.

9. User Story: As a CFO, I want to be able to conduct sensitivity analysis on the cost of capital, so that we can assess the impact of changes in the cost of capital on our company’s EVA.

– Precondition: Assumptions and variables for sensitivity analysis on the cost of capital must be defined.
– Post condition: Sensitivity analysis on the cost of capital is completed and the results are available for review.
– Potential business benefit: Sensitivity analysis on the cost of capital helps assess the impact of changes in the cost of capital on EVA and informs financial decision-making.
– Processes impacted: Financial analysis, strategic planning.
– User Story description: As a CFO, I want to be able to perform sensitivity analysis on the cost of capital by changing assumptions and variables. This will allow us to assess the impact of changes in the cost of capital on our company’s EVA and make more informed financial decisions.
– Key roles involved: CFO, financial analysts, senior management.
– Data objects description: Assumptions and variables for sensitivity analysis, EVA calculations.
– Key metrics involved: EVA, sensitivity analysis.

10. User Story: As a financial analyst, I want to be able to calculate EVA for different business units or divisions within our company, so that we can assess their individual financial performance and allocate resources effectively.

– Precondition: Financial data for each business unit or division must be available.
– Post condition: EVA calculations for each business unit or division are completed and the results are available for analysis.
– Potential business benefit: Calculating EVA for different business units or divisions helps assess their individual financial performance and inform resource allocation decisions.
– Processes impacted: Financial analysis, resource allocation.
– User Story description: As a financial analyst, I want to be able to calculate EVA for each business unit or division within our company by considering their respective financial data. This will allow us to assess their individual financial performance and allocate resources effectively.
– Key roles involved: Financial analysts, CFO, senior management.
– Data objects description: Financial data for each business unit or division, EVA calculations.
– Key metrics involved: EVA, financial performance analysis.

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