Regulating shareholder value: A case study of the introduction of value-based measures in a water company

The implementation of a value-based measurement system within a privatized UK regional water company is examined by means of a longitudinal case study. Evidence is presented of how the system was developed within the context of a regulatory environment, which presented special considerations to the company in designing and implementing an appropriate system. In particular the paper considers the implementation issues surrounding the management of the introduction of the value-based measures at the operational level. The authors describe the drivers behind the introduction of the new system and the technical, political and cultural challenges raised by its implementation.