Value Based Management

Hewitt Associates

August 2001
Creating Shareholder Value is Gaining Importance Due to a Variety of Factors
What is Value Based Management ?
 A consistent framework that aligns management action and strategic objectives with shareholder value creation

 The primary goal of value based management is to build a corporate mindset in which management decision making and execution are focused on the creation of shareholder value  

HR Alignment Facilitates the Success of VBM Implementation
Empirical Results Show a Link Between  Organizational Implementation and Value Creation
Linking HR to VBM
An HR Perspective on Value Management
What is Value in the Business Context?
Competing Perspectives:
Bridging the Gap
 
Measurement of Value 
 Measurement of value is not a neutral act - it is a choice which signifies management’s priorities and dictates the organization’s view of itself
 
 Selecting a performance measure aligned with enhancement of value influences not only that measure but also all those measures not selected   
Measurement of Value