Reporting nonfinancials

Reporting Nonfinancials......Page 3
Contents......Page 7
Foreword......Page 13
Acknowledgments......Page 15
Introduction: Goodwill and Blue Skies? Getting a Grip on Nonfinancials......Page 17
Closing the gap between book value and market cap......Page 18
Step 1: Classifying nonfinancials......Page 21
Step 2: Adjusting to regional priorities......Page 22
Step 3: From consciousness to action......Page 23
Part I: The Why......Page 25
1 True and Fair View? The Glaring Deficiencies of Financial Reporting......Page 27
The old economy’s reporting paradigm......Page 28
Change reporting, not accounting......Page 30
Getting form to follow function......Page 32
Nonfinancials: The overheads of the 21st century......Page 34
2 Open Sesame? Nonfinancial Reporting between Pressures, Paradoxes and Potentials......Page 39
Pressures: Regulators, investors and public opinion......Page 41
Paradoxes: A singular lack of clarity and concreteness......Page 43
Potentials: Professionalisation on the march......Page 45
Part II: The What......Page 51
3 Competitive Value Brands, Customers and Markets......Page 53
A. Brands: Engines of Growth and Reputation......Page 54
Calculating brand value . . .......Page 55
. . . and reporting on brand equity......Page 57
Rescuing the brand: Reporting as a part of crisis management......Page 59
Strategies for product . . .......Page 61
. . . and corporate brands......Page 63
B. Customers: The Key Entrepreneurial Asset......Page 67
Customer orientation: Beyond lip worship......Page 69
Customer loyalty: Beyond retention......Page 70
Customer satisfaction: Early warning system or success barometer?......Page 72
Customer commitment: Showing true grit......Page 74
C. Markets: Targeting Niches, Segments and Sectors......Page 79
Marketing metrics: From market share . . .......Page 81
. . . to sectorial insights......Page 83
Marketing strategy: Between brand positioning . . .......Page 84
. . . and financial results......Page 85
Summary of Competitive Value......Page 88
4 Management Value Strategy, Governance and Outlook......Page 95
A. Strategy: An Amalgam of Processes and Visions......Page 96
Systematising strategy: Concentrating on targets . . .......Page 99
. . . and on market trends......Page 100
Strategy as a structured process . . .......Page 103
. . . and as an exercise in restructuring......Page 104
Strategy derived from the vision of a leader . . .......Page 106
. . . and his insights on markets – or hers......Page 109
B. Governance: Shades of Transparency......Page 113
Regional pressures and structural differences......Page 115
Are governance premiums sufficient incentives for coherent reporting?......Page 117
Reporting approaches: Between formalism . . .......Page 120
. . . and hardcore information......Page 122
C. Outlook: Forecasting as the Ultimate Challenge......Page 127
Between expectations and regulations......Page 128
Inputs and outputs: Systematising forecasting......Page 129
Uncorking the champagne – or biting the bullet......Page 132
Paths to growth and glory: Unorthodox approaches......Page 135
Summary of Management Value......Page 137
5 Human Resources Value Productivity, Motivation and Potential......Page 145
Can people be capitalised? Ambitious concepts, modest results......Page 146
Leveraging human resources: Pinpointing indicators . . .......Page 148
. . . and reporting coherently......Page 150
A. Productivity: Promoting Effectivity and Efficiency......Page 153
Ways to productivity: The cultural factor......Page 155
Factual approaches: From basic documentation . . .......Page 158
. . . to a strategic overview......Page 159
Focusing on the essentials......Page 162
B. Motivation: Wild Card for Excellence?......Page 164
Corporate culture: The backbone of motivation......Page 165
Mobilising employees: Between satisfaction . . .......Page 169
. . . and engagement......Page 172
C. Potential: Protecting Property and Harnessing Talents......Page 175
Exploiting intellectual property: Defensive and offensive approaches......Page 176
Managing diversity: Qualitative solutions . . .......Page 178
. . . and quantitative evidence......Page 181
Training: An investment in superior performance......Page 184
Summary of HR Value......Page 187
6 Ethical Value CSR, Sustainability and Stakeholder Dialogue......Page 195
Good ethics=superior financial performance?......Page 196
Evolution of reporting: From accounting to assurance......Page 199
A. Corporate Social Responsibility: Charity or Policy?......Page 203
Reporting trends: Quantity and quality on the rise?......Page 206
Concretising commitment . . .......Page 208
. . . and concentrating on core business......Page 209
An emphasis on issues . . .......Page 211
. . . and on mission......Page 214
B. Sustainability: Between Triple Bottom Line and Realistic Targets......Page 218
Reporting between minimalist requirements and maximalist demands......Page 220
From triple bottom line . . .......Page 224
. . . to challenges and dilemmas......Page 225
Setting targets and executing strategies......Page 226
C. Stakeholder Dialogue: Conflict-Shooting or Win–Win Strategy?......Page 232
Curing corporate myopia......Page 234
Systematising processes, developing indicators......Page 236
Addressing specific issues . . .......Page 238
. . . and systematising consultation......Page 240
Ethical value: A must or a sham?......Page 243
Summary of Ethical Value......Page 246
Part III: The How......Page 253
7 Says Who? Addressing Stakeholders and Facing Issues......Page 255
Low standards of accountability . . .......Page 256
. . . and cultural proclivities......Page 258
Focusing on audiences: Communities, employees . . .......Page 260
. . . the financial community . . .......Page 262
. . . and NGOs......Page 263
Focusing on specific issues . . .......Page 267
. . . and tackling general concerns......Page 269
Dialogue as an ongoing process......Page 273
Dialogue perspectives: From evasiveness to civic sense......Page 277
8 New Wine in New Bottles? Strategy, Structure and Style......Page 289
Strategy: From fundamental questions to an integrated approach......Page 290
Structure: The road to clarity and materiality......Page 295
Style: From story-telling to substance......Page 307
Coherence, brevity, accountability......Page 316
Bibliography......Page 323
Index......Page 327