History of Value Based Management (VBM)

History of Value Based Management (VBM)

Value based management arose thanks to the influence of shareholders and financial markets to maximize the market value of the organizations. That's why lots of firms choose this concept and focus on creating financial value in their businesses.
VBM means that first the added value of the new strategy or investment-decision has to be known before real decisions can be made.
Managers should be careful because such long-term choices can not be undone fast.