Use the Stern Stewart Integrated EVA framework (Stern Stewart) to measure not just profitability, but also economic value add and shareholder value. This framework uses this equation to identify the true profitability of your organization:
Net Operating Profit - Total Capital Charges = Economic Value Add
The Stern Stewart framework uses these perspectives:
EVA and EVA drivers—Identifies the financial components of EVA and the financial EVA drivers map.
Customer—Describes how to drive revenue by defining the customer base and managing customer needs.
Cost— Identifies how the cost of items such as production, materials, labor transform into services and products, through activities and processes.
Capabilities—Identifies the tasks required to maintain, develop, and renew the knowledge needed to satisfy customer need.