Value Driven Management Essay Example
Introduction Value driven management involves the maximization of the long-term good of a company by understanding the value theory. The value theory states that what people value drives their actions. In other words, people are motivated by things that are significant to them. This may be different for each individual as some people are driven by money and others are driven by achievement. This form of management takes into consideration the effect of business decisions on the organization and its stakeholders. With this in mind, it encourages the creation of value over time in order to help sustain the company. Creating such value over time requires an organization to pay attention to eight key value drivers. These value drivers include external cultural values, organizational cultural values, individual employees, customer values, supplier values, third party values, owner values and competitor values (Pohlman & Gardiner, 2000, p.36). Many organizations today, use value driven management to achieve success. However, many organizations have different methods of achieving the same goal. In this paper, we will discuss the practices of two major corporations to see how they use value driven management in their organization. We will compare how these two companies use the value driven management approach to gain enormous success in their respective industries. The two companies we have chosen are Best Buy and Procter & Gamble. These are two companies that have been in existence for a number of years. Both of these organizations have managed to excel in their respective industries. Therefore, they must be doing something right. Hopefully we can get to know these companies better and find out what they are really about. In doing so, we will be able to learn a great deal about these organizations and how they function. In addition, we will be able to apply the concepts of value driven management in order to have a better understanding of how it works.
Best Buy
Best Buy