About VDM

A total of 30 students from 6 participating European universities have worked together on a project to create a training model for companies which outlines the benefits of implementing Value Driven Management (VDM).
Each group was allocated one of the five VDM topics which were brought together to develop a single approach.
Below is a synopsis of the core concept (VDM), alongside the 5 major topics to which it relates.
This project is a continuation of the wider VDM project which commenced in 2011/12 in Bacau, "George Bacovia" University, Romania.

Value Driven Management

Value driven management (VDM) is a comprehensive and complex philosophy focused on the theory that values drive and motivate action (Pohlman et al., 2000). VDM is considered to arise from a combination of plans, decisions, actions and rewards (Ginsburg and Miller, 1992) and organisations must “create an environment that embraces this philosophy (VDM) over the long term” (Pohlman, 1997:XX) in order to successfully implement VDM. A vital ingredient of the philosophy is based upon effective thinking; start thinking, think well and think things through (Pohlman et al. 2000). “Values management is the process by which an organisation actively measures, monitors and responds to its casual indicators of performance in such a way that it adjusts its culture and way of being to sustain high performance (output) and meets its objectives (outcomes)” (Barrat, 2006:169).

According to Pohlman (1997; et al 2000), there are eight facets of VDM:
1.     External cultures to the organisations
2.     Organisational culture
3.     Employee values
4.     Supplier values
5.     Customer values
6.     Third party values
7.     Competitor values
8.     Owners’ values

A new value equation has emerged through the development of VDM regarding how employees and their values must be in sync with those of the organisation for. An effective employee-organisational relationship allows the employee to learn, develop, grow and truly enjoy their work (Pohlman et al, 2000).
It is significant to emphasise that VDM does not undermine previous management techniques such as Total Quality Management and market-based management, yet these processes need to be utilised with the objective to maximise Value Over Time (VOT) (Pohlman, 1997). Decision makers must be focussed on creating value in order to grow the organisation and to remain competitive. The main objective of VDM is to create VOT maximisation, a VDM approach leads to superior decision making which result in VOT (Pohlman, 1997).