Holistic Integration Model in Strategic Map
July 16th, 2009
Totok Sugiharto | Wed, 07/15/2009 1:44 PM | Supplement
Value-based management (VBM) inspires everyone in an organization to make decisions based on an understanding of how their decisions will contribute to the organization’s value. VBM focuses on creating value and increasing shareholder wealth.
VBM has three objectives. First, as an integrated approach to align the vision, strategy, management processes and people in an organization that is aimed at continually increasing share value; second, as a framework to link goals, strategies, resource allocation, performance assessment, and compensation to value; and third, to understand investors perspectives when assessing a corporation’s performance and linking it to the stock price.