Stop analysing and start thinking: the importance of good thinking skills in a value‐managed company

The last 15 years or so have seen the emergence of a powerful management philosophy known as value‐based management (VBM). The premiss underlying this philosophy is that management’s primary responsibility is to maximize value for shareholders. Much of the work which has been done in this field has focused on value measurement rather than value creation. Argues that we need to shift the focus from value measurement to value creation and to do this, we need to accept that shareholder value creation is a creative act, not an analytical process. Value creation requires a combination of creative and analytical thinking skills. These skills can be developed, and if properly integrated into a hybrid thinking process, can lead to better strategies, better financial performance and much more satisfied employees.