ECONOMIC VALUE MANAGEMENT

“Economic Value Management is an integrated approach to managing any
organization, one that is based on the principle of stewardship
(and the inexorable consequences of failed stewardship).”
Economic Value Management is a management approach, a series of
practices, that are based on stewardship, and that yield economic, valuecreating
results.
All three words, economic, value, and management, speak to the concept
of stewardship and to its consequences. (Definitions come from Webster’s
Collegiate and the Oxford English Dictionary.)
Stewardship is defined as the “conducting, supervising or managing of something,
especially the careful and responsible management of something
entrusted to one’s care,” or “the responsible use of resources, especially
money, time, and talents.”
Economic implies not accounting or record keeping, but rather means a
process “marked by careful, prudent use of resources,” “yielding advantageous
returns or results.”
Value is defined as something “held in high esteem or appreciation,” “having
worth,” something that is “valid, sound.” It is a “measurement of relative
worth,” “the estimate in which something is held related to principles or
standards of what is valuable in life,” and “the quality of a thing considered
in respect of its power and validity for a specified purpose or effect.”
Management is defined as the “judicious use of means to accomplish an
end,” “the application of skill or care in the conduct of an enterprise,” “the
exercise of executive, administrative and supervisory direction,” and “the
taking of control of the course of affairs by one’s direction.” It is
“the fulfillment
of duties,” “handled or directed with a degree of skill,” “treated
with care,” “carried on successfully” “to achieve one’s purpose.”
Source: www.thevaluealliance.com website