Value Based Management

What are the benefits of Value Based Management?

 

Value Based Management aligns a company’s overall aspirations, analytical techniques, and management processes with the key drivers of value.

 

The three elements of Value Based Management:

 

Creating Value: How the company can increase or generate maximum future value. More or less equal to strategy.

 

Managing for Value: Governance, change management, organizational culture, communication, leadership.

 

Measuring Value: Value Based Management is dependent on the corporate purpose and the corporate values. The corporate purpose can either be economic (Shareholder Value) or can also aim at other constituents directly (Stakeholder Value).

 

Where can Iberfinance help you?

  • Can maximize value creation consistently.
  • It helps to balance your short-term, middle-term and long-term goals.
  • It sets clear your management priorities.
  • Facilitates to improve decision making.
  • Encourages value-creating investments.
  • It increases corporate transparency in your organisation.
  • It helps you to deal with globalized and deregulated capital markets.
  • Aligns the interests of the (top) managers with the interests of shareholders and stakeholders.
  • Facilitates communication with investors, analysts and communication with stakeholders.
  • Improves internal communication about the strategy.
  • Prevents undervaluation of the stock.
  • Improves the allocation of resources.
  • Streamlines planning and budgeting.
  • It sets effective targets for compensation.
  • Facilitates the use of stocks for mergers or acquisitions.
  • Prevents takeovers.
  • It helps to better manage increased complexity and greater uncertainty and risk.