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Using EVA to measure performance and assess strategy

Al Ehrbar (Senior vice president of Stern Stewart & Co.)

Strategy & Leadership

ISSN: 1087-8572

Article publication date: 1 March 1999


Of all the measures that corporations use to gauge their performance, none is more accurate or use‐ful than economic value added, or EVA. Used to its fullest, EVA can help corporations achieve remarkable success. In fact, most of the companies using EVA as their framework for financial management and incentive compensation have substantially outperformed their competitors.


Ehrbar, A. (1999), "Using EVA to measure performance and assess strategy", Strategy & Leadership, Vol. 27 No. 3, pp. 20-24.




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