User Story 1:
Precondition: The company has implemented the concept of shareholder value maximization.
Post condition: The company has successfully utilized Economic Value Added (EVA) to measure its shareholder value.
Potential business benefit: Improved decision-making and resource allocation based on maximizing shareholder value.
Processes impacted: Financial planning and analysis, budgeting, strategic decision-making.
User Story description: As a financial analyst, I want to implement the concept of shareholder value maximization using Economic Value Added (EVA) to measure the company’s financial performance. By calculating EVA, we can identify areas where we are creating value for shareholders and make informed decisions to maximize shareholder value. This will help us allocate resources more effectively and align our strategic decisions with the goal of increasing shareholder wealth.
Key Roles Involved: Financial analyst, CFO, senior management.
Data Objects description: Financial statements, such as income statement and balance sheet, are used to calculate EVA.
Key metrics involved: Economic Value Added (EVA), net operating profit after tax (NOPAT), invested capital.
User Story 2:
Precondition: The company has implemented the concept of shareholder value maximization.
Post condition: The company has identified and prioritized projects based on their potential to maximize shareholder value.
Potential business benefit: Optimal allocation of resources to projects that generate the highest shareholder value.
Processes impacted: Project prioritization, resource allocation, investment decision-making.
User Story description: As a project manager, I want to prioritize projects based on their potential to maximize shareholder value. By considering the expected Economic Value Added (EVA) of each project, we can allocate resources to projects that generate the highest shareholder value. This will ensure that our limited resources are utilized optimally and that we focus on projects that contribute the most to increasing shareholder wealth.
Key Roles Involved: Project manager, finance team, senior management.
Data Objects description: Project proposals, financial projections, EVA calculations.
Key metrics involved: Economic Value Added (EVA), project costs, expected cash flows.
User Story 3:
Precondition: The company has implemented the concept of shareholder value maximization.
Post condition: The company has implemented a performance measurement system based on Economic Value Added (EVA).
Potential business benefit: Improved performance evaluation and incentive alignment with shareholder value maximization.
Processes impacted: Performance evaluation, incentive compensation, goal setting.
User Story description: As a HR manager, I want to implement a performance measurement system based on Economic Value Added (EVA) to align employee incentives with shareholder value maximization. By incorporating EVA as a performance metric, we can ensure that employees are rewarded for their contribution to increasing shareholder wealth. This will motivate employees to focus on value-creating activities and align their goals with the company’s objective of maximizing shareholder value.
Key Roles Involved: HR manager, finance team, senior management.
Data Objects description: Performance metrics, employee compensation data, EVA calculations.
Key metrics involved: Economic Value Added (EVA), employee performance ratings, incentive compensation.
User Story 4:
Precondition: The company has implemented the concept of shareholder value maximization.
Post condition: The company has integrated Economic Value Added (EVA) into its capital budgeting process.
Potential business benefit: Improved capital allocation decisions based on maximizing shareholder value.
Processes impacted: Capital budgeting, investment decision-making, financial planning.
User Story description: As a finance manager, I want to integrate Economic Value Added (EVA) into our capital budgeting process to ensure that we allocate capital to projects that generate the highest shareholder value. By calculating the EVA of each potential investment, we can prioritize projects that create value for shareholders and avoid investments that do not meet our value creation criteria. This will result in more informed capital allocation decisions and a higher likelihood of maximizing shareholder wealth.
Key Roles Involved: Finance manager, CFO, senior management.
Data Objects description: Investment proposals, financial projections, EVA calculations.
Key metrics involved: Economic Value Added (EVA), project costs, expected cash flows.
User Story 5:
Precondition: The company has implemented the concept of shareholder value maximization.
Post condition: The company has implemented a shareholder communication strategy based on Economic Value Added (EVA).
Potential business benefit: Improved transparency and communication with shareholders regarding value creation.
Processes impacted: Shareholder communication, investor relations, financial reporting.
User Story description: As a communications manager, I want to develop a shareholder communication strategy based on Economic Value Added (EVA) to effectively communicate the company’s value creation efforts to shareholders. By incorporating EVA into our investor presentations and financial reports, we can provide shareholders with a clear understanding of how the company is creating value for them. This will enhance transparency, build trust, and attract potential investors who prioritize shareholder value maximization.
Key Roles Involved: Communications manager, investor relations team, senior management.
Data Objects description: Investor presentations, financial reports, EVA calculations.
Key metrics involved: Economic Value Added (EVA), shareholder return, market value added.
User Story 6:
Precondition: The company has implemented the concept of shareholder value maximization.
Post condition: The company has implemented a shareholder value-based incentive compensation system.
Potential business benefit: Enhanced alignment of employee incentives with shareholder value maximization.
Processes impacted: Incentive compensation, performance evaluation, goal setting.
User Story description: As a compensation manager, I want to design an incentive compensation system based on shareholder value maximization to motivate employees to focus on activities that create value for shareholders. By incorporating Economic Value Added (EVA) as a performance metric, we can reward employees based on their contribution to increasing shareholder wealth. This will align employee incentives with the company’s objective of maximizing shareholder value and drive behavior that supports value creation.
Key Roles Involved: Compensation manager, HR team, senior management.
Data Objects description: Compensation plans, performance metrics, EVA calculations.
Key metrics involved: Economic Value Added (EVA), employee performance ratings, incentive compensation.
User Story 7:
Precondition: The company has implemented the concept of shareholder value maximization.
Post condition: The company has implemented a shareholder value-based pricing strategy.
Potential business benefit: Improved pricing decisions based on maximizing shareholder value.
Processes impacted: Pricing strategy, revenue management, sales and marketing.
User Story description: As a pricing manager, I want to develop a pricing strategy based on shareholder value maximization to ensure that our products and services are priced in a way that generates value for shareholders. By considering the impact of pricing decisions on Economic Value Added (EVA), we can set prices that maximize shareholder wealth. This will result in more profitable pricing decisions and a higher likelihood of creating value for shareholders.
Key Roles Involved: Pricing manager, sales and marketing team, senior management.
Data Objects description: Pricing data, sales data, EVA calculations.
Key metrics involved: Economic Value Added (EVA), pricing margins, customer profitability.
User Story 8:
Precondition: The company has implemented the concept of shareholder value maximization.
Post condition: The company has implemented a shareholder value-based supplier selection process.
Potential business benefit: Improved supplier selection decisions based on maximizing shareholder value.
Processes impacted: Supplier selection, procurement, supply chain management.
User Story description: As a procurement manager, I want to develop a supplier selection process based on shareholder value maximization to ensure that we partner with suppliers who contribute to increasing shareholder wealth. By considering the impact of supplier selection decisions on Economic Value Added (EVA), we can prioritize suppliers that offer the best value for shareholders. This will result in more strategic supplier partnerships and a higher likelihood of creating value for shareholders.
Key Roles Involved: Procurement manager, supply chain team, senior management.
Data Objects description: Supplier performance data, EVA calculations.
Key metrics involved: Economic Value Added (EVA), supplier costs, delivery performance.
User Story 9:
Precondition: The company has implemented the concept of shareholder value maximization.
Post condition: The company has implemented a shareholder value-based risk management framework.
Potential business benefit: Enhanced risk management practices aligned with shareholder value maximization.
Processes impacted: Risk management, strategic planning, decision-making.
User Story description: As a risk manager, I want to develop a risk management framework based on shareholder value maximization to ensure that our risk mitigation efforts align with the company’s objective of maximizing shareholder value. By considering the impact of risk events on Economic Value Added (EVA), we can prioritize risk mitigation strategies that protect shareholder wealth. This will result in more effective risk management practices and a higher likelihood of achieving our value creation goals.
Key Roles Involved: Risk manager, strategic planning team, senior management.
Data Objects description: Risk assessments, EVA calculations, mitigation strategies.
Key metrics involved: Economic Value Added (EVA), risk exposure, risk mitigation costs.
User Story 10:
Precondition: The company has implemented the concept of shareholder value maximization.
Post condition: The company has implemented a shareholder value-based performance evaluation system for business units.
Potential business benefit: Improved performance evaluation and resource allocation based on maximizing shareholder value.
Processes impacted: Performance evaluation, resource allocation, strategic decision-making.
User Story description: As a business unit manager, I want to implement a performance evaluation system based on shareholder value maximization to ensure that our business unit’s activities contribute to increasing shareholder wealth. By incorporating Economic Value Added (EVA) as a performance metric, we can evaluate the value created by our business unit and allocate resources accordingly. This will result in more informed resource allocation decisions and a higher likelihood of maximizing shareholder value.
Key Roles Involved: Business unit manager, finance team, senior management.
Data Objects description: Business unit performance data, EVA calculations.
Key metrics involved: Economic Value Added (EVA), business unit costs, revenue generation.