Performance Dashboards and Analysis for Value Creation (Wiley Finance)

What it’s about

Written by former CFO, consultant, and Babson professor Jack Alexander, this book demystifies valuation and shows managers exactly how their operating decisions build (or destroy) long-term shareholder value. It builds a foundation in finance and valuation, then introduces the Value Performance Framework (VPF)—a system that links six controllable value drivers (sales growth, relative pricing strength, operating effectiveness, capital effectiveness, cost of capital, and the intangibles) to specific business processes, key performance indicators, and high-visual-impact 'dashboards.' Grounded in a benchmark study of more than 125 companies and packed with practical Excel models and sample dashboards, the book teaches managers to identify high-leverage improvement opportunities, quantify their impact on value via discounted cash flow, evaluate mergers and acquisitions economically, and implement a performance management framework that creates context, assigns accountability, and provides leading indicators of future performance.

The through-line

Who it’s for

A manager, executive, or director who wants to build long-term sustainable shareholder value and understand how business activities connect to it.

The problem

Operating performance, financial measures, and shareholder value are not integrated, so managers can't see how their activities drive value or identify high-leverage improvements. They feel uncertain and disconnected—wanting to do the right things but not understanding how their role relates to company success and long-term value.

The plan

1. Build a foundation in finance, valuation, and business models.
2. Identify your company's six value drivers and assess performance via benchmarking and process evaluation.
3. Link each driver to critical processes and select leading performance measures.
4. Build high-visual-impact dashboards and quantify high-leverage improvement opportunities via DCF.
5. Institutionalize a performance management framework integrated with planning, compensation, and investor communication.

The payoff

Managers and employees understand how their activities build shareholder value. · The firm grows while earning returns above its cost of capital. · Problems and threats are detected early through leading indicators, enabling timely correction.

See our guide

• Measure And Steer The Business With Financial Data →

Additional reading

• Damodaran on Valuation · Aswath Damodaran

  Recommended by the author as another foundational text for deeper understanding of business valuation.

Featured in these guides

• Measure And Steer The Business With Financial Data →Cited source