EVA fundamentally measures value added over all costs, including cost of capital. This provides a simple, easy method for non-financial managers to understand if their decisions regarding programs and investments make economic sense to enterprise. EVA metrics can also improve effectiveness of compensation or bonus programs normally used to enhance worker productivity. EVA allows a business to objectively determine if task (programs, new product, etc.) creates or destroys shareholder value.

 Competence information - Perhaps one of more esoteric of measurements Drucker talks about, but none-the-less equally as important is competence information. A business must find ways to measure and constantly analyze their core competence. At minimum, businesses should do this as a part of their yearly planning exercise. Marketing folks call it a SWOT analysis - strengths, weakness, opportunities and threats. However, I would suggest quarterly would be more appropriate. The core competency of any business determines its ability to be a market leader. In other words leadership is ability to do something other companies in your field cannot or find extremely difficult. Core competency blends together customer value with enterprises' special ability to produce or service customers better than any competitor.

Companies that already get this point use benchmarking as a tool to determine trends in core competency. They determine what their special ability is and objectively compare it to direct and emerging competitors. On-going analysis (monthly is not unusual for certain companies) track and trend what is working and not working in market place. What works should be straightened. What doesn't work needs further review, and may provide an indication that your customers are losing value in your offering or finding degradation in your core competency. Either way, it becomes an early warning that a change is occurring in your targeted customers' valuation of your product or service. You may then, more effectively, redirect corporate assets to meet this threat. This brings added opportunity and continued leadership.

Final Thoughts Peter Drucker as CEO. Of course it can't happen, but it stimulated me into thinking of possibilities that I may not have otherwise thought about. There is no ‘silver-bullet' that magically transforms your business, but hopefully this article presented a thoughtful blend of Drucker's wisdom, experience, and knowledge wrapped in his pragmatic approach and directed at motivating you to focus on creating shareholder wealth.

You might find a new book from John E. Flaherty, Peter Drucker: Shaping Managerial Mind - How World's Foremost Management Thinker Crafted Essentials of Business Success worth read. It helped to shape some of my thoughts as I wrote this piece.

Drucker is quoted as saying, "Efficiency is doing things right; effectiveness is doing right things. " Which is your business doing and what measurements are you using that give you this truth?