This briefing is an attempt to draw attention to the
context, tools, techniques and philosophy of managing
for shareholder value, or value-based management (VBM)
as it is sometimes known. It is not meant to be
prescriptive. Like other management concepts, managing
for value has been adapted by companies to suit their
circumstances. There can be no “one size fits all”
model.
The briefing is divided into three sections
corresponding to the main VBM components: ● strategy –
for value creation; ● metrics – for value measurement;
and ● management – encompassing governance,
remuneration, culture, structure and stakeholder
relationships. It also provides insights from senior
finance professionals with direct experience of managing
for value and a brief discussion of some of the key
barriers and drawbacks of attempting to implement VBM
programmes. pdf
