What is value based management?

Value-Based Management (VBM) is a customer-focused system built upon shared principles and core values, which is designed to instill an ownership culture within an organization. VBM is catalyzed by "authentic leaders" who actively seek to empower others; it is developed and sustained from the ground-up. Value-Based Management follows the market-oriented theory of economic justice first advanced by the ESOP inventor Louis Kelso and the philosopher Mortimer Adler. (See chapters 4 and 9 in CESJ's Curing World Poverty: The New Role of Property.)Value-Based Management offers workers an opportunity to participate as first-class shareholders in the company's equity growth, and in monthly and annual profits on a profit center basis. Experience has shown that where reinforced by a VBM culture, people become empowered to make better decisions, discipline their own behavior, and work together more effectively as a team. Because each person contributes, risks and shares as an owner, as well as a worker, VBM helps unite everyone's self interest around the company's bottom-line and corporate values.Value-Based Management calls for a new philosophy of leadership. It holds that a genuine leader sees himself or herself as the ultimate servant and a teacher, one who empowers others to realize their hidden potential, not one who rules by fear or refuses to be accountable to others.