The Financial Radar Screen (FRS) is an EVA-based enterprise software system that helps CFOs, financial analysts, corporate planners, development officers, and IR directors make more informed and ultimately more valuable decisions.
FRS converts reported accounting data into real financial intelligence by measuring, benchmarking, dissecting, projecting and valuing financial performance through an EVA lens. It can be applied to a consolidated company, a private business or individual lines of business, or even for acquisition or divestiture candidates. You simply upload your accounting numbers via a structured Excel spreadsheet and FRS replies with economic insights that will help you make better decisions faster.
Through a related subscription service, you can also automatically benchmark performance against a custom peer group drawn from the 20,000 public firms covered in our global database.
What are the typical benefits?
- You remove the blind spots of conventional financial measures and see the total profitability performance of your businesses, spanning operating efficiency and asset management, and including growth and retrenchment, with the power of EVA.
- You give line managers an incredibly revealing EVA diagnostic report card for quarterly performance and for their plans during the planning process—to stimulate them to develop better, more valuable plans.
- You set financial targets that are more accurate, more credible, more actionable, and more directly linked to value.
- You understand and communicate your company’s value more effectively—to your board and investors.
- You create a common language and overall financial score that spans all your business lines.
- You price acquisitions more accurately and insightfully—based on their real economic value, and by looking beyond misleading book earnings and multiples.
- You benchmark the drivers of economic profit across lines of business and versus public peers to spot trends, identify where your operations fall short, and quantify and target the best improvement opportunities.
- You upgrade the financial literacy of your finance staff and equip it with powerful tools to generate real financial intelligence and to be more responsive to critical planning questions as they arise.
- You save time, increase productivity, and you extinguish modeling errors.
Our clients typically start with a one-year program to evaluate the software and become completely comfortable using the EVA metrics at the corporate level before rolling it out more fully to divisional heads and line teams. We also offer shorter pilot programs to test drive the model, including our very popular “Concierge Program” in which we populate the software with your financial results and generate a comprehensive set of insights to share with you—with a minimal call on your staff resources.
We also offer on-going training and support so that you can bring our EVA methodology in–house and put it to work through the regular rhythms of how you report, plan, and manage your business.