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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.