Since 1986 the Consortium for Advanced Manufacturing-International (CAM-I), through its Cost Management System (CMS) Program, has provided a forum for members of industry, academia, and government to collectively challenge and improve cost management systems. The companies that sponsor CAM-I - many of them leaders in their field - recognize the need for continual improvement throughout their organizations.

CMS Program members from various companies and industries formed an investment management work group with the aim of rethinking the investment process. They realized that previous methods and criteria for decision making may prove misleading or even disastrous in today's business environment.

This book is a collection of the ideas and experiences of the members of the work group and is based on several research projects sponsored by the CMS Program. It provides a summary of the major findings of these research studies. The Institute of Management Accountants (IMA) has participated in CAM-I since inception and is collaborating actively on common study themes. IMA was instrumental in shaping the beginnings of the CMS Program and has continued to support its work since then.