Vyaderm Size Up - Generic o 75% of company sales o lower margins and 16months for FDA approval (relatively short)

o KSF price cost reputation/brand (trustworthy) - Patent o 25% of company sales o 10years until it becomes generic o KSF innovation quality (has to work) reputation/brand Changes in control system - 50% objective 50% subjective - only focused on EPS - what does the change actually include? o EVA center => separate business unit w/ its own BS and IS before they went from one BU the whole company to 15BU (15 too many to manage) then changed into 4BU (based on product division) 1 to 15 to better gauge the performance of the EVA centers switched 15 to 4 because it was difficult to manage, currency therefore they switched into 4 BU based on product division o EVA drivers => in order to improve EVA numbers profitable growth, operating efficiencies, and utilization of assets previously they looked at EPS didn't take into account these two factors this EVA encompasses concrete EVA added to the whole company o EVA based incentive program 3 components EVA target (based on improvements from one year to the next) , unlimited upside and downside incentive really good incentive, because EVA target is expected improvement from one year to another (if one year has really good improvement then the next year poor performance) ***