Value Based Management (VBM) has been defined in many different ways .  Value Creation Group, Inc., as its name implies, is a strong proponent of Value Based Management.  Value Based Management can be simply stated as:

management system in which entire organization is

• focused
• measured
• compensated

for creating value for stakeholders (i.e., customers, shareholders, employees, vendors)

It is really a philosophy of management rather than one particular technique.  VBM is really a combination of techniques such as 

• Balanced Scorecard
• Activity Based Management,
• Performance Management, Performance Measures
• Process Management
• Predictive Management etc.

which focus to create value for stakeholders.

Haspeslagh, Philippe; Noda, Tomo; Boulos, Fares, Managing for Value: It 's Not Just About the Numbers, HBR, July-August 2001, P.64
Hansen, Fay, "Value Based Management Commitment", Business Finance, Supplement to Sept. 2001, p. 2
Leahy, Tad, "Devil's in Details", Business Finance, Supplement to Sept. 2001, p. 7
Martin, John & William Petty, Value Based Management, Harvard Business School Press, (Cambridge, MA2000) 
Sammer, Joanne, "Missing Link", Business Finance, Supplement to Sept.2001, p. 11

Call or email below John Antos or Jim Brimson to find out how Value Based Management can help your organization.