Value-based management

Value-based management (VBM) is a business management approach that focuses on creating long-term value for stakeholders, including shareholders, employees, customers, suppliers, and the wider community. VBM aims to align the interests of all stakeholders with the goal of maximizing value over the long term, rather than focusing solely on short-term profits.

The key principles of value-based management include:

Focus on creating long-term value: VBM prioritizes sustainable growth and profitability over short-term gains.

Align interests of stakeholders: VBM aims to create alignment between the interests of shareholders, employees, customers, suppliers, and the wider community.

Measure and manage value: VBM uses a range of financial and non-financial metrics to measure and manage value creation.

Continuous improvement: VBM encourages a culture of continuous improvement, seeking to optimize all aspects of the business to maximize value.

Empowerment and accountability: VBM emphasizes the importance of empowering employees and holding them accountable for achieving value-creation goals.

VBM has gained widespread acceptance as a framework for business management, with many companies adopting VBM principles in their decision-making processes. By focusing on long-term value creation and stakeholder alignment, VBM can help companies build sustainable competitive advantages and deliver sustainable growth and profitability over the long term.

Quality improvement (QI) tools are increasingly being used to calibrate healthcare quality. Achieving healthcare quality is essential, as there is a movement toward value-based healthcare delivery. Visual management, such as a living Pareto chart, is a strategy for improvement within the QI framework.