Vyaderm Pharmaceuticals: The EVA Decision

In 2016, the new CEO of Vyaderm Pharmaceuticals launched an Economic Value Added (EVA) program to align the company with long-term shareholder value. The EVA program consists of three elements: EVA centers (business units), EVA drivers (operating practices that improve EVA results), and an EVA-based incentive program for eligible managers. Over the next two years, program implementation will encounter several obstacles, including resistance from regional managers pushing for “line of sight” EVA drivers; the difficulty of managing a large number of EVA centers; and unexpected bonus adjustments due to poor EVA performance. The decision point focuses on the competitive situation in a business unit, in which the sudden exit of a competitor leads to an unexpected and one-time drop in profits. Senior Vyaderm managers are grappling with the question of whether to adjust EVA results to avoid demoralizing managers in future years when EVA results are likely to decline.

We don‘t have the case solution, but we pay up to $50 for yours!

• Set a reminder to receive an email after your university‘s case study deadline.
• Upload your case study solution. We will review it for quality.
• Get your money via PayPal or to your bank account.