Value-Based Management for Organizations

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Author: Benjalux SAKUNASINGHA

Published in: Vol:9 No.2 / 2008

      Businesses create value and perform best when performance can be measured. One outstanding performance measurement tool is value-based management (VBM), a relatively new concept that is offering management an improved performance measure in today’s business environment. VBM links business strategy, finance, performance measurement and management processes to create value and shows how to maximize the value of an organization. Developing corporate value is the best long-term measure to show how good the present management is doing its job; however VBM indicates the current situation and future prospects of an organization. VBM helps managers and employees obtain a sharp focus of the corporate vision and financial objectives across the organization. By providing one leading measurement indicator – namely, the VBM, to enhance corporate value.

Pages: 189-199