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Full implementation of MSV program

Managing for Shareholder Value – the key to commercial success

Creation of Shareholder Value is the performance yardstick by which CEOs and Boards are measured throughout the commercial world. Managing for Shareholder Value (MSV) is PA’s comprehensive management approach to delivering this performance. No other approach requires the same rigorous attention to a core guiding principle nor offers the proven, significant long-term benefits in terms of performance, profitability, value creation, returns to shareholders and share price.

However, whilst many understand the objectives of an MSV approach and are enthusiastic about the benefits delivered, they are unsure of where to start and on what to focus.

How can top management ensure that it delivers value and avoids its shareholders taking action?

Top management must ensure that it is explicitly managing for shareholder value, driving for rapid alignment of strategy and performance management and then following through to ensure that the value is delivered year on year.

MSV is a top management issue. The first stage is to commit to MSV and to a Total Shareholder Return (TSR) target. The second stage is to align strategy and performance management with this new target. Only with real focus on change management can the Board confidently expect that its initiatives will deliver the value required.

If you think these insights will help you create shareholder value, please go to our new MSV survey questionnaire.

See also:

Value-based strategy

Value-based remuneration

Strategic information management

Marketing for Shareholder Value

Value-based investor relations