What is a “first” or “second” generation Performance Management and Measurement framework? Let’s begin by defining these concepts. First generation Performance Management and Measurement frameworks derive Key Performance Indicators (KPIs) from strategy. These include well known and established frameworks, such as Balanced Scorecard (BSC) and EFQM Excellence Model. These first generation frameworks have led organizations to increase the […]
Tag Archives | Value Creation
Are You Still Using a First Generation Performance Framework?
Contributed by David Tang on April 12, 2017 in Operations & Supply Chain, 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 […]