Term Paper On Value Management


The paper discusses the importance of value management and how it is different from other forms of management. Value management is the technique through which different ways of doing things are combined together to create more value from people, products, and other resources. These elements are not unique in themselves, but when integrated in efficient and novel ways, they showcase how value management can be effective. Value management is the art of optimizing a business’s potential by tapping into the dormant or under-utilized resources that the business has. The ultimate goal of value management is to improve the efficiency of whatever business it is that one is running. Moreover, value management can help build a corporation’s brand image and supply it with a much coveted market position.

Literature Review

It is important to delineate the nature of management style most suited to the presence of networked operations. It must be noted that the value management paradigm bases its practice in the system of dialogue and exchange that signify integrated decision and policy making. Value management’s strength comes from its ability to highlight a motivational force that doesn’t exclusively rely on measures and incentives to drive practice and reform. People are motivated by their relationships with others formulated through mutual respect and combined learning. Hence, constructing successful relationships is the main objective of value management. (Stoker, 2005)

A business must realize that it ought to integrate its intellectual assets into its strategic thinking. This will maximize the value of its intellectual assets and develop a management process that will help to maximize the creation of new valuable intellectual assets. It must be recalled her that intellectual assets are part of a larger body of intellectual property that doesn’t necessarily have value. Intellectual assets fall under the all-inclusive heading of intellectual capital.

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Intellectual capital is made up of human, organizational, and customer capital. Human capital is the knowledge that each individual has and use, organizational capital is the knowledge that has been institutionalized within the structure, practices, and culture of a corporation and customer capital is the perception of value acquired by a customer from doing business with a supplier of goods and services. These elements are closely connected to and dependent on each other and value is created when knowledge flows between them. (Petrash, 1996). Conclusively, efficient value management can enable a company to more effectively tie into its collective human capital and add to its business intelligence quotient, even if it is minimally.

Further, value management is about transforming behavior in a way that encourages employees to think and act like owners. Furthermore, value creation involves much more than merely monitoring firm performance. Value is created only where managers are actively engaged in the process of identifying good investment opportunities and taking steps to capture their value potential. Value creation requires management to be effective at identifying, growing, and harvesting investment opportunities. (Martin, 2001)


Value management can help a business secure enhanced performance. If value management is applied systematically it can be highly beneficial. Value analysis was a technique pioneered by Lawrence D. Miles is the 1940’s to improve the value of existing products and to address resources other than costs.

Value management is different from other forms of management as it integrates factors that are not usually found together. Additionally, among other things, value management emphasizes creativity and innovation as means for ensuring best business practices.

Also, value management leads to improved profitability and stability of a given business. Professional businesses and firms seek the expertise of veterans to help them build effective value management models. These firms and businesses are privy of the fact that it is only through commendable value management that business efficiency can be improved.


Stoker, G. (2006). Public value management: A new narrative for networked governance?. The American review of public administration, 36(1), 41-57.
Petrash, G. (1996). Dow’s journey to a knowledge value management culture. European management journal, 14(4), 365-373.
Martin, J. D., & Petty, J. W. (2001). Value based management. Baylor business review, 19(1), 2.

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