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"Forecasting Shareholder Value: The Missing Objective in Balanced Scorecards"

Presented at the 2006 Crystal Ball User Conference, May 1-3, Denver.

Link to the paper:  cbuc06_fsv.pdf

What it's about: If the objective is maximizing shareholder value, that a corporation's balanced scorecard or executive dashboard should highlight shareholder value creation. Both historical and forecast should be displayed.

I suggest that companies continually monitor wealth creation and forecast (from the shareholders' perspective) shareholder value (or total return) for at least two strategies:

  1. Continue to reinvest in the business
  2. Milk the business for cash and distribute this to shareholders (best by repurchasing shares)

—John Schuyler, May 2006, Revised Aug 2006

Copyright 2006 by John R. Schuyler. All rights reserved. Permission to copy with reproduction of this notice.