Do online business models offer insurance companies potential for optimization?
Value-based management must be seen as a guiding concept of modern corporate governance. It means aligning business activities to increasing enterprise value.
Each and every process and decision in a company has a direct or indirect influence on its enterprise value. It either increases it or reduces it.
The shareholder value approach, for example, involves gearing management to the aims of the company’s owners, who are mainly interested in increasing the value of its equity capital.
Using this approach, enterprise value can only be increased to a limited extent in the long term, so in practice the stakeholder value approach is used more frequently. It takes into account both the interests of shareholders in increasing the enterprise value and those of the employees, the state, customers, suppliers etc.
In the context of value-based management enterprise value enhancement options include increasing the return on sales, reducing capital costs, improving capital productivity, and optimizing the portfolio.
Integrated value-based management has many influencing factors and must be designed for the individual company and implemented step by step. Efficacy checks play an important part in preventing mismanagement.
mgm consulting partners has the experience and expertise and will help you to draw up a consistent concept – and to implement it in the company.
Factors that influence value-based management:
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