With a lineage dating back to 1982, Stern Value Management is a
boutique management consulting firm with a proud history. Under
founder Joel Stern, the firm-then known as Stern Stewart &
Co.-developed the Economic Value Added® (EVA®) methodology.
Following a rebranding in 2013, Stern Value Management retained
both Joel Stern's leadership and the EVA trademark. However, the
Stern Stewart name lives on: a group of offices, headquartered in
Europe, opted to retain the Stern Stewart name and operate as a
separate firm following the rebranding. Presently, the two firms
are not affiliated.
The EVA specialists…and more
As of 2014, Stern Value Management's capabilities can be broadly
grouped into 4 main categories: operations, strategy, finance, and
governance. Because its major focus is on creating value, the
firm's methodologies apply to clients in a broad range of
industries-in fact, SVM has served more than 800 clients in both
the public and private sectors, including AB Inbev, Best Buy,
Briggs & Stratton, Credit Suisse, Coca Cola, Goldman Sachs,
Herman Miller, Hertz, Morgan Stanley, Siemens, Sony, the U.S.
Postal Service, Whole Foods, and the Williams Companies.
As founder and chairman Joel Stern writes on the firm's site,
"if firms maximize value over time, the surplus they will create
will be invested elsewhere in society and this will create
additional job opportunities and income for people who would not
otherwise be able to earn it. My focus is on creating value in
order to enhance the general welfare." Research conducted by the
firm claims that those that have implemented its Value Based
Management system have created more jobs while delivering superior
returns to shareholders than a control group.
Finance roots with a generalist approach
SVM has its roots in the revolutionary finance thinking that
started at the University of Chicago in the 1950's. Today, the firm
emphasizes recruiting generalist problem solvers who also have a
foundation in corporate finance. The firm today recruits from top
undergraduate and MBA programs, including Columbia University, the
University of Chicago, the University of Virginia, and New York
University, among other top programs.
It's about value
While the firm may have started with EVA, its list of
methodologies and proprietary tools doesn't end there. Stern's
commitment to value creation can also be found in tools such as
Market Value Added (MVA), Future Growth Value (FGV), Current
Operations Value (COV), Wealth Added Index (WAI), and Relative
Wealth Added (RWA).
In addition, the firm also conducts industry research and
publishes books and whitepapers detailing its research. More
regular contributions can be found on the SVM blog.
New brand - extended focus
Over the last few years, the firm has focused on
operationalizing value creation, extending its concepts beyond the
C-Suite and the Board and into operations. This extended focus is
one of the key drivers behind the rebranding according to Erik
Stern, the firm's President and COO.
Global consultancy with a family feeling
With clients around the world but fewer than 100 employees, SVM
is a rare breed: a global consulting firm that aims to retain the
close-knit, family feeling among employees that is the hallmark of
many boutique firms. Accordingly, the firm considers its flat
organizational structure to be one of it keys assets, along with a
diverse workforce and the opportunity for consultants at all levels
of the business to interact with its clients' senior