The concept of performance is much more relevant than any financial indicator, such as earnings or profitability. The word contains a sportive element which suggests a much more comprehensive and sustainable reality. Performing means being “better” and not only “good”. Better in customer relationship, in the efficient use of assets, in mobilizing competences and human capital, and the ability to convince investors of the attractiveness of the business model.

Managers must integrate performance in their operating decisions whose quality will be a source of profits and sustainable profitability for the firm. Profits is only the metrics of performance and the consequence of good decisions.

This module explains the rationality which underlies the entire corporate finance approach, and builds in a consistent way the financial indicators which measure performance. A special focus is given to investment, source of any operational performance and value creation.