Equitable Resources (EQT)
Combining the dual changes of a new CEO operating in a deregulating environment, the Equitable management team made an assumption: All employees needed to understand the company's strategy, as well as their role in making it work.

Equitable engaged Edgeworth to devise a communications piece, taking the form of a game, that depicted how Return on Total Capital (ROTC) was measured within the industry. From there, Equitable's own financial position was presented, with employees playing out the company's recent past and expected future. "Winning" tables were those employee teams that met or exceeded the company's cost of capital. All employees participated.

Did Equitable's strategy work? Equitable reported a 196% increase in full-year earnings per share, along with net income that rose 178% during the same period. According to the CEO, "Through an intense period of change, we have refocused our strategy to create a growth-oriented energy company with a higher-return, lower-risk profile."

As Equitable continues to make tremendous strides in shareholder value, it uses the program on an ongoing basis. The latest initiative ensures that everyone understands how the company has succeeded and how to further that success.

theGame.gif (1K)
Designed to help Equitable communicate
financial strategy for increased shareholder value.


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