Introduction

• customer satisfaction

• Sales prices

• Costs

• capital expenditure

• Employee salaries

• have to be defined

• have to be made operational (necessary level of detail)

• have to be measured (from month to month)

• have to be controlled (by line management)

VBM is at its best a marriage between

 a value creation mindset

and

 management processes and systems that are

necessary to translate that mindset into action.

decision making at all levels using value-based

performance metrics managing

 the balance sheet

 the cost of capital

 The cash-flow statement

 the income statement