Money is not the driver of success
Value is a broad concept. Not everything of value can be expressed in terms of money, like freedom, friendship, love, enjoying nature, beautiful music or a good glass of wine. Motivation of people usually comes from other sources than money alone. So why should we limit our view to financial aspects when we talk about organisational governance?
According to the vision of VBM Partners, Value Based Management is not limited solely to economic value, but strives for value creation for all stakeholders. An important limiting condition and outcome for the continuity of commercial enterprises is obviously that sufficient profits must be generated, but that does not mean that this should be the only goal. Profit should be in healthy balance with People and Planet to create sustainable value, so Value Based Management and Corporate Social Responsibility are not conflicting but complementary, which can be expressed by using the term Value(s) Based Management.
VBM Partners has been established in 2009 by Edward Koops to help organisations (re)discover their sources of value creation, build on them and strengthen them though innovation. This is something you cannot outsource, therefore training is the foundation of the services of VBM Partners. These all revolve around successfully initiating, preparing and executing important decisions which should lead to the realisation of the strategy of organisations.
Value gets created through cooperation
During the last decades rising complexity and uncertainty have made decision making increasingly more difficult, amongst other things due to increased market dynamics and globalisation, advancing technologies, new legal requirements and changing demands in the area of corporate social responsibilities, for instance related to the environment or sustainability. How do you make sure that in your decisions you have taken into account all relevant aspects? Have you paid enough attention to uncertain developments which might have an impact on your assumptions? During the whole value creation process many decisions are being made which can have a major impact on the end result. What can possibly go wrong is illustrated in the figure below.
An important success factor for value creation in organisations is to what extent management cooperates well in decision making. Value Based Management is for 20% about numbers and for 80% about realising behavioural change of employees, clients and suppliers. For this reason VBM Partners stresses in its vision and way of working the importance of transparent decision making processes, in which all stakeholders are involved who will be impacted by a forthcoming decision. The expression ‘success has many fathers’ has certainly an element of truth in it!