Hr Specialist - Policy,compehsation &
Compensation And Policy

Hi everyone,
Can some one describe what is value creation index, description.
This is what I am told to work on for presentation to the management. I am lookiing for input a general idea so that I can compile with my understanding to present to the management for introducing this measure into our practice.

From Saudi Arabia
Greetings RashidMiya,

I initially thought you are Rashid Musa at least your post suggest us this anyway. I like your postings of very intelligent and intellectual questioning that makes me happy to interact and share knowledge.

The value creation index is a tool the was designed to quantify the link between an organization’s non-financial performance and its valuation in the market.
Traditional methods of assessing organization performance are no longer adequate in today’s economy. The price of a stock is less and less determined by earnings or its asset base. Value creation in today’s companies is increasingly represented by the intangible drivers like innovations, people, ideas and brand.
But the non-financial factor for creating value are difficult to quantify. Also they are rarely acknowledged in accounting methods. Finally they are not adequately measured, not adequately managed and not adequately reported, by organization.

Categories of intangible performance that determine corporate value creation;
  • Innovation
  • Management Capability
  • Alliances
  • Technology
  • Brand Value
  • Employee Relations
  • Environment and Community issues
Not Cultural Issue like “ Diwali Celebrations in Office”



From Saudi Arabia
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