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Outperform with Expectations-Based Management: A State-of-the-Art Approach to Creating and Enhancing Shareholder Value



Outperform with Expectations-Based Management: A State-of-the-Art Approach to Creating and Enhancing Shareholder Value

Tom Copeland, Aaron Dolgoff

ISBN: 978-1-118-16105-0 September 2011 384 Pages


CEOs and managers live and die by delivering superior performance to shareholders. This is why expectations-based management has been developed. Outperform with Expectations-Based Management (EBM) introduces a revolutionary new performance metric that links performance standards, performance measurement, and the achievement of performance.

It's easy to say that if a CEO can get performance measurement right, then performance improvement will follow. But what is the "right" measure of performance, and how do you use it to improve performance? Authors Tom Copeland and Aaron Dolgoff answer these questions and many more, as they show you how to find the measure of performance that has the strongest link to the creation of wealth for the owners of both public and private companies. They answer the puzzle of why growth in earnings is not correlated with shareholder returns and explain the under- and over-investment traps. And they explain how clear communications to investors and managers alike improve value.

The bottom line is that share prices go up when companies exceed expectations -- short-term and long-term -- of income statement and balance sheet performance and daily operating value drivers. Gain a complete understanding of EBM and discover how to do this, and much more, while staying competitive in an unforgiving business environment.


Dedications and Acknowledgments.


Chapter 1: The Right Objective, Strategy, and Metric.

Chapter 2: Expectations Count: The Evidence.


Chapter 3: Management of Existing Businesses.

Chapter 4: New Investment and Business Mix Decisions.

Chapter 5: What About the WACC?

Chapter 6: Capital Efficiency.

Chapter 7: Reverse Engineer the Value of Your Firm.

Chapter 8: Investor Relations.

Chapter 9: Incentive Design.

Chapter 10: Implementing an EBM System.


Chapter 11: Investor Relations: Understanding the Investor’s Perspective.

Chapter 12: Comparison of Value-Based Management Systems.

Chapter 13: Expectations, Noise, and Public Policy.

Chapter 14: Summary and Conclusions.



* Explains why EBMTM is the most effective performance measurement metric for CEOs. Performance measurement is the most important topic for CEOs and other business managers. This book introduces a revolutionary new performance metric, EBMTM, created by The Monitor Group's international strategy, managerial, and organizational development consultants.

* Documents EBM's outperformance relative to other popular performance metrics, such as economic value added (EVA®). Based on academic studies, EBM is estimated to be 10 times better than other performance metrics with which it was compared.

* Helps you understand the cause/effect relationship between performance and your stock price. Shows that business unit performance is not measured relative to the cost of capital, but rather whether or not actual performance is better than expected.