Steve Chopp, John K. Paglia - Build a Culture of Value
Creation
When done correctly,
VBM provides an organization the opportunity to significantly improve
performance by aligning the entire organization around value creation. In
short, all employees will begin to make decisions like an owner of the firm.
However, implementing VBM is not easy. In this article, Chopp and Paglia
highlight three key steps for the implementation of a value creation
culture:
1. Gain Senior Management Commitment. Without this support, do not continue
with the program.
2. Customize VBM Framework. Be thorough and do not leave out any areas.
Don't get caught up in the numbers. The framework needs to be understandable
at all levels. Strive to keep it simple, clear and compelling.
3. Make VBM a Way of Life. Take this step very seriously because it will be
the determining factor between the success or failure of VBM at your
company.
By following these steps in an ethical and socially-responsible manner, a
corporation will be well on its way to developing a value creation
culture and a successful VBM program,
which can have a positive effect on the shareholders, employees, and the
community in which the firm operates.
Recommended Books on building a culture of
value creation
Brickley, Designing Organizations to Create
Value
Fogg,
Implementing Your Strategic Plan
Knight,
Value Based
Management. Developing a systematic approach..
Risher,
Aligning Pay and Results
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