[2] Discussed in my book The Business Value of Computers, The Information Economics Press, 1990.
[3] It is noteworthy, the the listing of EVA(TM) values appeared for the first time only two years ago in Fortune magazine, even though a number of economists and management thinkers have maintained for well over hundred years that economic profits and not "accounting profits" are the proper measure of corporate performance.
[4] Approximately the sum of Sales, General and Administrative plus Research and Development Expenses, if Overhead expenses are not available from detailed cost studies.
[5] The source of the EVA, Return-on-Capital and Cost-of-Capital data is the Stern Stewart Performance 1000 Database, Stern Stewart Management Services, New York, N.Y. 1995.
[6] The 1994 numbers will become available early in 1996.
[7] In 1992 that number was 56.0%, in 1991 there were 58.1% firms with negative EVA.
[8] Bureau of Economic Analysis, U.S. Commerce Department, as shown in Forbes, February 27, 1995, p.41. Information capital is defined as computers, peripherals, and telecommunciations.
[9] About 70% of the 1991-1993 turnaround in the overall economic performance of industrial companies can be explained by the improvements in EVA in the car and trucking sector. The extent to which a deliberate government policy of lowering the value of the dollar vs. the yen enabled the U.S. auto manufacturers to regain market share will be debated for a long time to come. It is noteworthy that the increase in the imported prices of Japanese cars made it possible for U.S. automobile manufacturers to keep up high prices and high profits.
[10] These buzzword are not mine. They have been extracted from the keyword index of the a popular business journal.
[11] Such as "...taking and ax and machine gun to your existing organization..."; "...shoot the dissenters...";"...reengineering will require a lobotomy...";"...what you do with the existing structure is nuke it!";"...break legs...";"...the way you deal with resistance is a bloody ax...";"..we will run over you with the train..".
[12] For fuller discussion see my book, The Politics of Information Management, The Information Economics Press, 1995, Chapter 20