Why value based management goes wrong

Simon Court, Matthew Davies, Paul New

Research output: Contribution to specialist publicationArticle

Abstract

The authors introduce and describe a relatively new approach to management entitled Value Based Management which is concerned with creating long term value for shareholders by matching or exceeding their expectations. They outline what VBM is and does, describes the typical adopter of the programme and the procedures VBM initiatives take. They list some of the drawbacks including the type of people who champion VBM inside the company (who tend to come from a finance or strategic background), the consultants (who tend to be like-minded), inadequate education programmes and tendency to exclude employees from full participation. The authors conclude that while VBM has been less than spectacularly successful it would be wrong to conclude that it had failed completely. Its biggest contribution has been in reducing the incidence and frequency of reckless, value destroying decisions.
Original languageEnglish
Pages7-21
Number of pages15
VolumeSpring
No.16
Specialist publicationMarket Leader
Publication statusPublished - 2002

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    Court, S., Davies, M., & New, P. (2002). Why value based management goes wrong. Market Leader, Spring(16), 7-21.