Valuing Non-Financial Performance
This important one-day event will take place on 13 November 2012, at Nyenrode Business Universiteit, Netherlands, and will bring together company managers, asset managers, asset owners, advisers, researchers, scholars and key commentators. Expressions of interest in contributing to the programme and registration are now open.
Key points
This important one-day event will bring together company managers, asset managers, asset owners, advisers, researchers, scholars and key commentators.
- Date and location: 13 November 2012 (09:00-18:00), Nyenrode Business Universiteit, Breukelen, Netherlands (close Schiphol Airport)
- Price: Free to EABIS and CSR Europe members, and selected contributors.
- Deadline: For expressions of interest in contributing to the programme and registration for event - October 19, 2012
- Numbers are limited so early registration is advised.
- Contact for all questions: valuedrivers@nyenrode.nl
Context
There is growing awareness that the value of the business organisation is not adequately presented by financial performance, and that non-financial performance should play a more prominent role in strategy and investment decisions. Current value measurement models are set up to measure easily quantifiable data for which there are commonly accepted standards of measurement - hence the emphasis on traditional financial performance indicators –and may no longer be fit for purpose. When making strategy and investment decisions, business leaders and investors operate with only partial information.
Investors and companies that assess performance only through short-term quarterly earnings and consequent movements in stock price tend to overlook less tangible drivers which are instrumental in the creation (or destruction) of companies’ sustainable value. With 80% of stock markets’ value not represented in ‘financials’ we are seeing the growth of trends to expand the concept of value such as stakeholder or shared value and value chains and the search for valuation models and management tools that better reflect these trends.
The concept of value is expanding in time (from short term to long term, sustainable value) and space (from single shareholders to multiple stakeholders). So how can we:
1. identify more effective ways in which companies and investors can monetise or valorise non-financial factors in existing investment case or valuation processes and models?
2. where this is not possible, develop indicators that more truly represent the full value (including the full risks), short and long term, of a business organization and help investors (asset owners and asset managers) and business leaders (boards, CEOs and CFO’s) to make better informed decisions?
3. ensure business schools integrate these concepts to ensure current and future business leaders have a good understanding of valuing non-financial performance?
Defining the current state of knowledge
The Academy of Business in Society and CSR Europe are co-convenors of a collaborative venture exploring the relationship between financial and non-financial performance of organisations. There are two primary components:
1. A company project investigating the measurement and management of non-financial performance in the pursuit of improvement in both and a rationale for greater alignment with strategy and key business results
2. An investor project, Delphi, comprising major asset managers, asset owners and advisers in identifying the most material non-financial drivers of financial performance (and its ESG underpinnings)
Both projects draw on the work of the Laboratory on Valuing Non-Financial Performance and the parallel EABIS-funded research ‘Sustainable Value’.
This event seeks to advance knowledge and understanding of the relationship between financial and non-financial performance and address those three key questions. The focus will be on:
1. exploration by company managers of the relationship between financial and non-financial performance drivers and the potential impact of those linkages, inter alia, on:
a) access to finance
b) internal investment/business case analysis
c) risk assessment
d) credit analysis
e) HR, project and supply chain planning
f) financial and integrated reporting
2. asset managers pooling intellectual property to define and refine a framework of material non-financial performance indicators and related factors;
3. a parallel discussion of asset owners on the rationale and validity of the emergent findings of both companies and asset managers;
4. examination of the state of academic knowledge in this area and the gaps in research and management education.
Your active participation is sought
This call for contributions is aimed at potential participants in this one-day event, where numbers are limited, and seeks expressions of interest from those with knowledge and experience in relevant fields such as:
1. Company analysis and practical application in business models and management tools
2. Development of investment case, risk, project management, credit analysis models etc
3. Financial and non-financial analysis and modeling in equity, bond and other capital markets
4. ESG research, particularly where integrated in mainstream investment decision making
5. Development of due diligence analysis particularly where linked to M&A activity and/or subsequent IPO placements
We are keen to have contributions from:
1. Company practitioners in fields of:
a) Finance and/or corporate development
b) Risk and corporate governance
c) Project management
d) Product/market development and allied marketing
e) Human and intellectual capital management
2. Asset managers and owners
3. Financial analysts and industry experts including index modellers
4. Corporate finance and commercial market and fixed income analysts
5. Equity finance and venture capital analysts and investors
6. Associated developing markets such as impact and real estate investment and equity/capital investors in emerging and developing economies
7. Researchers, scholars and educators in:
a) Finance & strategy
b) Organisational behaviour
c) Operations
d)Sustainability
Outcomes
By bringing together thought leaders in the field of valuing non-financial performance, this event will create a community of practice of professionals and researchers better equipped to pursue this agenda collaboratively and within their own organisations. The outcomes of this event will be captured in the latest of EABIS’ Thought Leadership publication series (subject to permission of individual contributors).
How to engage
Please email valuedrivers@nyenrode.nl if you wish to participate in the event, outlining your area of interest or expertise and potential contribution (in no more than 500 words). Supporting papers or presentations are welcomed.
This event is sponsored by:
