Build a value creation culture

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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