What is Value-Based Management? 

Value Based Management (VBM) is the management philosophy whereby managers focus on the creation, management, and measurement of corporate value. 

What is Value in a Business Organization? 

Value in a corporation has traditionally meant maximizing shareholder value. This is consistent with the agency theory of corporate governance. 

A broader concept of value creation includes generating value for all stakeholders of organization. This is consistent with the stakeholder approach to corporate governance. 

What are the Elements of Value-Based Management?

Value-based management includes planning and execution that aligns the following:

• Vision and Mission
• Company-Level and Competitive Strategy
• Governance 
• Culture
• Organization and Structure
•  Communication
• Decision-making procedures and systems
• Performance Management Processes and systems
• Reward and Incentive Systems