Explores the concept of economic value added (EVA) and its practical applications as a management control system for performance measurement and incentive compensation. Explains how EVA is measured and explores some of the adjustments to financial statements that are required to measure EVA. Provides a fully worked example of a firm's measurement of its EVA, both before and after adjustments to its financial statements. Describes several types of EVA bonus schemes and discusses both the benefits and limitations of EVA.

Spreadsheet Supplement for case 206016.

A small software company has remarkable success repairing its dysfunctional organizational dynamics through a form of improvisational theater. The key is an exercise in which actions truly speak louder than words.