Translating Strategy into Shareholder Value: A Company-Wide Approach to Value Creation

ABM, see activity-based management

acquisitions

buyer, 26, 40-42

supplier, 36, 38-39

see also mergers and acquisitions

activity-based costing (ABC), 6, 164

activity-based management (ABM), 6, 147, 163-182

advantages of, 166-168

conventional budgeting vs., 164-166

creating cost attributes in, 178-179

creating high-level process maps in, 172-175

creating model for, 168-180

defining end result in, 169-172

developing activity dictionary in, 175-177

driving costs into strategic elements in, 179-180

mapping costs into activities in, 177-178

in strategic decision making, 181-182

strengths of, 180-181

weaknesses of, 181

activity dictionary, 175-177

"adding value", 13, 20

adoption rate (of IT), 73-74

alignment

in Balanced Scorecard model, 137-139

organizational levels of, 254

of strategy and finance, xi-xiii

of strategy and value creation, xi

of valuation framework and organization, 254

application service providers (ASPs), 52

assets, 150

capital, 214

in financial leverage, 155, 156

fixed, 214

intangible, 208

physical, 208

see also return on assets

asset turnover (AT), 154, 155, 200

assumptions, SWAV, 257-258

AT, see asset turnover

At the Speed of Thought (Bill Gates), 49

attributes

cost, 178-179

of power, 254-256