Value-Based Management (VBM) has been regarded traditionally as a tool to help investors evaluate firms, optimize performance management, and maximize shareholder value. However, there are mixed opinions on whether to utilize VBM as a mandatory investment or management tool. Many investors, analysts, and executives, to this day, are skeptical of the influence and role of VBM […]
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Go beyond Traditional Value-Based Management: Value Creation through Relative Shareholder Return
Contributed by Mark Bridges on August 12, 2019 in Corporate Finance, Management & Leadership, Strategy, Marketing, & Sales
What Is Value Based Management (VBM)?
Value Based Management (VBM) is a management philosophy that states management should foremost consider the interests of shareholders in its business actions. This framework encompasses the processes for creating, managing, and measuring value. It is important to note VBM differs from a profit-focused way of managing business. Specifically, VBM means that the decisions that you […]