Value-based management

In this lesson

1. 0:00 Value based management overview
2. 1:11 Why value based management developed
3. 2:00 Core concepts and economic value added
4. 3:06 Tools and techniques for VBM
5. 3:53 Implementing value based management
6. 5:04 Building blocks model and culture
7. 5:47 Benefits and limitations of VBM
8. 6:50 Further resources and exam preparation

About this lesson

You'll discover the key difference between shareholder value and profit, explore the tools used to implement VBM (including Economic Value Added), and understand how to cascade value drivers through an organisation so that every employee's objectives connect to shareholder wealth creation. The video covers the practical implementation of value-based management, from developing an overall strategy focused on maximising shareholder value through to establishing performance targets, KPIs and reward systems linked to value creation. You'll see how VBM addresses the limitations of traditional profit-based measures by taking a long-term view and identifying what actually drives shareholder wealth. The session also examines the real benefits and challenges of implementing VBM, including the cultural and organisational changes required, and explains why identifying value drivers at all levels is crucial for making this approach work effectively in practice. This topic is relevant to Advanced Performance Management and other strategic performance modules where you need to demonstrate understanding of modern approaches to performance measurement beyond traditional profit maximisation.

Duration: 8m