Value-Based Management (VBM)

If implemented properly and used rigorously VBM approach can be a strategic asset in growing shareholder value. It aligns managers with shareholders, leads to strategies that work and builds a foundation for discipline in management in general. The VBM approach brings the perspective of shareholders to the forefront of managerial decision-making. In multi-business companies, both family-owned and listed, it helps decentralize the decision-making to the business unit level.

In addition to incentive compensation design, a Value-Based Management implementation typically involves work in following areas:

• Performance measurement
• Strategy formulation
• Decision support