The Corporate Goal
In summary, HandHolding® oxygenates and sustains the survival and growth of sound business initiatives as well as the continued actualization of corporate goals by providing end-to-end partnership support beyond traditional financial capital. By unleashing the recursive, four-step process, oxygenation naturally takes place and, stakeholder goals are satisfied.
We measure the collective stakeholder goal satisfaction using the Adjusted Residual Income (ARI) statistic. Adjusted residual income (ARI) is post-tax income in excess of opportunity costs of capital plus a measure of sustainability risk. Six quarter continuous positive ARI is a measure of sustainably strong performance. The achievement of positive ARI index is de facto the successful oxygenation of target candidates.
The ARI index is a better measure than traditional profit because:
- It helps in monitoring the problem areas and hence taking corrective actions.
- Higher ARI implies higher bonuses to the managers who will, in turn, work hard.
- Unlike accounting profit, ARI is based on the idea that a business must cover both the operating costs, the capital costs and other sustainability risks. It thus presents a better and truer picture of the company to stakeholders.
- Using ARI evaluate projects independently will enable better decisions.