Financial Services Industry
Industry: Email Alert RSS FeedQuality in 3D: EVA, CVA, and employees. (economic value-added, customer value-added) (From FEI)
Financial Executive, July, 1993 by Ferling, Rhona L.
The quality program driving AT&T in the 1990s focuses on economic value-added (EVA), customer value-added (CVA) and employee satisfaction. EVA is used by the firm not only as a measure of shareholder value, but also as a measure of major business decisions. The second component of the three-pronged program, CVA, is used as a measure of customer attitudes regarding the worth of an AT&T product in relation to its price. The company assesses the third performance facet, employee satisfaction, by working closely with employees. Management is trying to deepen its understanding of how financial decisions affect the workforce. EVA, CVA and employee satisfaction measures are embraced by all AT&T business units but they are tailored to suit each unit's products and operations.
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