ABSTRACT
Value based management seeks to build a performance measurement system focused on enhancing shareholder value. If well designed, integrated with other measures such as activity based management (ABM) and business process management (BPM), and fully understood by management at all levels, it provides a solid foundation for improved performance. Business process re-engineering (BPR) or BPM are techniques that replaced the decreasingly popular total quality management (TQM). Where TQM expounded the virtues of going beyond customer needs and involving all employees in applying the tools and techniques of continuous improvement, BPR expounded a more radical approach. Customer relationship management (CRM) runs the risk of using sophisticated analysis tools to match revenue to customer attributes of lifestyles, buying preferences and behaviours. ABM is the fundamental tool for understanding the behaviour of costs – the missing dimension that should be in place as part of any properly structured CRM programme.
