Why value based management goes wrong

Court, Simon, Davies, Matthew and New, Paul (2002). Why value based management goes wrong. Market Leader, Spring (16), pp. 7-21.


The authors introduce and describe a relatively new approach to management entitled Value Based Management which is concerned with creating long term value for shareholders by matching or exceeding their expectations. They outline what VBM is and does, describes the typical adopter of the programme and the procedures VBM initiatives take. They list some of the drawbacks including the type of people who champion VBM inside the company (who tend to come from a finance or strategic background), the consultants (who tend to be like-minded), inadequate education programmes and tendency to exclude employees from full participation. The authors conclude that while VBM has been less than spectacularly successful it would be wrong to conclude that it had failed completely. Its biggest contribution has been in reducing the incidence and frequency of reckless, value destroying decisions.

Divisions: Aston Business School > Accounting
Aston Business School > Accounting Research Group
Full Text Link: http://www.warc ... =A72534&PUB=MKT
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Published Date: 2002
Authors: Court, Simon
Davies, Matthew
New, Paul

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