Understanding of the company creates real value for organizations
Top management must focus all its efforts on creating value to the organization, but not short-term value, but have the ability to create real long-term value. This process should be ongoing and long term. Of course, that this difficult task is not only top management but also must be a commitment of all employees of the organization.
If employees, not management, I mean, they feel they are a real contribution to the organization, they feel a greater level of commitment and motivation, which achieved an increase in the productivity of these. There are countless examples of organizations within the Fortune 500, to create value in the short term, taking into account only the shareholders have generated a lot of damage and destroyed value to organizations, rather than create it. The concept of value creation should not be a monetary or financial terms! This concept should be applied much more broadly.
Productivity is essential to compete in the competitive and dynamic market today. Productivity, both employees of the Organizations that are in constant research and anticipation of changes and problems.
For all the foregoing that I introduce the concept of “Value Driven Management” (VDM). VDM is a theory which focuses on creating real value in the long term, based on eight factors which always are considered individually and entirely to the point that any decision or action will be taken by the organization. These eight factors are:
• Cultures external to the organization;
• Organizational culture itself;
• Values of employees;
• Values of suppliers;
• Values of customers;
• Values of others;
• Values of competition;
• Values of the owners of the organization.
Once these factors are considered, as described above, both individually and integral can be sure that the decisions and actions will be implemented to maximize value creation in the long run, not only in monetary terms but in a broader sense. On the other hand VDM emphasizes the creation of knowledge and incentives, as might be the case for training and development, so that there is a genuine motivation of employees.
Wal-Mart is an excellent example of an organization that is constantly in search of ways to create value for it. This organization is a fundamental principle which is true at every level of the organization, this is respect for the individual. Respect for the individual not only refers to its employees but its customers, suppliers and partners.








