Description
This book explores the concept of Value Based Management (VBM), a comprehensive managerial approach centered on maximizing value for shareholders and owners. The core idea of VBM is to move beyond traditional accounting metrics, such as earnings per share, and instead focus on creating real economic value by ensuring that a company’s return on invested capital exceeds its cost of capital. The text outlines how a company can implement VBM by aligning its strategic planning, management processes, and even employee incentives to focus on key value drivers. It serves as a guide for leaders and managers, helping them to instill a culture where employees at all levels are empowered to make decisions that contribute directly to the company’s long-term value, ultimately encouraging them to think and act like owners.
