Value-Based Management

Value-Based Management (VBM) is a strategic approach that focuses on maximizing the value a company provides to its shareholders and stakeholders. It involves making decisions—such as investments, operations, and priorities—that enhance the company's long-term worth. VBM uses financial metrics like net present value and economic value added to guide those decisions, ensuring resources are allocated efficiently. The goal is to align management actions with creating sustainable value, balancing growth, profitability, and risk, so that the company genuinely benefits those invested in it.