Problems and prospects of implementation of value based management at domestic industrial enterprises

• Main Authors: Izmaylov Maxim, Kobzev Vladimir
• Format: Article
• Language: English
• Published: Peter the Great St. Petersburg Polytechnic University 2019-10-01
• Series: Научно-технические ведомости СПбГПУ: Экономические науки
• Subjects: value-based management; capitalization of assets; innovation economy; methods of valuation of the business; competitiveness of enterprise
• Online Access: https://economy.spbstu.ru/article/2019..16/
• ISSN: 2304-9774; 2618-8678

The article analyzes the possibilities of applying the innovative concept of cost-oriented management in Russian enterprises. The relevance of the study is due to the need to optimize the distribution of scarce resources in severe market conditions. Value-based management, or VBM, helps companies create competitive advantage by increasing business capitalization. Foreign studies show that this concept in relation to strategic financial management is more effective than the traditional accounting of profits and incomes. This is due to the specifics of counting – the VBM uses a more objective balanced scorecard, while taking into account all the functions of the organization, such as strategy, human resources and production. Especially important is the fact that, within the framework of the concept of value-based management, the setting of operational goals and the remuneration system are consistent with factors that determine the value of the company's assets, which makes employees responsible for the activities they control. The problem field of the study includes consideration of the peculiarities of doing business in Russia in the context of introducing effective methods of strategic management that could increase the adaptability of companies to market requirements. The results of statistical studies indicate that in Russia VBM was not widely used. The authors conclude that the main obstacle to the implementation of innovative management concepts are mainly “human factors” - such as the lack of top managers' interest in the development of this direction. The lack of understanding of the need to increase the value of assets permeates all levels of Russian companies, showing, among other things, that the wages of most managers do not depend on their contribution to the value. An important role is also played by the lack of necessary competencies and qualifications of financial specialists of the company for the implementation of this concept. Entirely, this calls into question the introduction of the VBM concept in the practice of Russian enterprises in the short and medium term.