EVX™ Value Module
Typical financial measures and indicators have proved inadequate in presenting or predicting the fundamental, sustainable strength of an organisation at any given point. Many other business management measures are generally short term, performance orientated and not value or asset focused. The design and structure of the EVX™ framework is based on extensive formal and informal research over many years by a team of experienced business leaders. The core results of this research indicate that physical & financial assets (the only assets measured on the balance sheet of organisations) ranked last and third last (out of 11 research classes) respectively, on a list of what are regarded as the most valuable strategic & financial assets in modern organisations. This ranking applies specifically to the achievement and sustainability of superior organisational performance and competitive advantage. These results tie in well with a range of emerging required global integrated reporting standards, as well as recent international strategic and competitive business practice trends.
Business leaders agree that physical & financial assets are not the most important value drivers, as they are a direct result of how other assets are managed and optimised.
The market and financial value of organisations is driven directly by a range of assets that need to be measured and monitored, as accurately, as consistently and as comprehensively (if not more so) as financial assets are.
The EVX™ has identified 10 'areas of capital', collectively forming the Competitive Capital of any modern organisation and provides a framework for measuring, quantifying and appropriate benchmarking of each of the 10 areas. Competitive Capital is the term used for the combined assets that render the achievement and sustainability, innovative and superior organisational performance and competitive advantage. The EVX™ has a unique, proprietary, integrated and dynamic structure in which areas of capital are broken down into identified entity-specific categories; elements within categories; measures within elements; and for each measure, has a formula and standard that results in a score out of ten for each and every level of enterprise asset.
The EVX™ is an integrated business management approach, framework and system, with a comprehensive toolset, designed to support the identification, measurement, monitoring and management of all the core business assets within modern enterprises. The EVX™ can be utilised for various strategic business purposes, including:
- The core ongoing organisation asset-based reporting framework, including financial, human, sustainability, risk management, intangible assets, as well as other key governance, compliance and asset-based measurement indicators.
- Once-off or periodic inputs to strategic planning, internal reviews, etc.
- Due diligence exercises, organisation valuations, focused investigations, as well as the packaging of organisational value that is not presented easily though standard financial analysis valuation processes.