Managing for Value Creation

Managing for Value Creation
August 16, 2013

The purpose of this paper is to highlight what managing for value creation means and the implications.   The paper will identify one method of managing for value creation in a business environment.   Often people think of value creation as just affecting the bottom line and increasing shareholders equity.   While that is important and the ultimate goal, there are other areas where value creation must take place in order to reach that ultimate goal.     Business owners, leaders, and managers need to understand how all areas of the organization must work together to maximize value.   Dropping the ball in one area, or excluding or ignoring an area, can have an underlying effect on the value created (or not created).   To help manage for value creation there are a number of methods.   This paper will discuss one of those methods.
Keywords: balanced scorecard, value creations, financial perspective

Value Creation Management
Managing for value creation is an across-the-board handling of all the organization's resources, both internal and external, to increase and maximize its value.   This increased value is not achieved in a vacuum.   Just because an organization has a great product it can sell for a good profit, doesn’t mean it will increase value to their shareholders.   They have to ensure they manage all aspects around the product to maximize the value it can obtain.   The value creation process includes areas such as managing marketing, transportation, production, and supplier cost.   It includes maintaining customer satisfaction and keeping employee motivated and dedicated to their mission.   When an organization is working as a team across all disciplines they increase their ability to create value.   One method to manage for value creation is called a balanced scorecard.   Management by using a balance scorecard is a method that incorporates different metrics, goals, and process improvements.   It helps manage both...