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To: Scott Brooks who wrote (1534)	3/20/1998 12:39:00 PM
From: shane forbes	Read Replies (1) \| Respond to of 2946

close - substitute Economic for Employee <eom>

To: Scott Brooks who wrote (1534)	3/20/1998 12:54:00 PM
From: David Aegis	Read Replies (3) \| Respond to of 2946

OT Scott--EVA stands for Economic Value Added. It is derived from the term "economic rent" which is an economist's way of describing profits in excess of a company's weighted average cost of capital. The consulting firm, Stern Stewart, has trademarked the term EVA. There are a number of copycats that use different acronyms, but EVA is the popular name kind of like Kleenex is used to describe any sort of tissue. EVA wraps finance and human resources together by tying an employee incentive system based on specific, identifiable, and measurable performance metrics to capital budgeting decisions made by senior management. All of this seems pretty obvious, and the concepts are not new. However, Stern Stewart and others have succeeded in putting it together in a fancy package and creating a cult-like following. Nonetheless, it works if the proper performance metrics are identified for various employee job functions. I think it would work in the case of SVG's Lithography group. --David