For Jason, the transition from capital reporting to financial reporting was swift. Two days after the meeting with Cathy, Earl, and Frank, he was in the small corporate finance conference room with Jack and Jill.

"I never thought we'd be sitting across from each other to revise my financial reporting system", Jack stated looking at Jason with a cold, hard stare. Then, softening his facial expression and glancing at Jill, he said "But, I have to admit that the concepts and rationale supporting the value-based financial performance system that we're installing do have merit and provide a good template for our operating managers to focus on. The fact that you were able to express a key target in the form of an earnings metric the VPM was probably the single most important element to bring me on board ."

"I've sensed that for some time now, Jack", Jason replied. "And, I also want you to know that there was never anything deliberate to attack accounting, except to make the point that the traditional accounting focus and measures do not usually work when trying to get to economic value."

"That point has been made abundantly clear to everyone in this company and especially to me", Jack quipped.

"Me also", Jill added. "And I look at the economic framework and approach as an enhancement to what we've traditionally done from a financial measurement and reporting perspective."

"That's a good observation and one that we...