Market-Based Management® (MBM®) is the engine that powers Georgia-Pacific. MBM is a holistic approach to management that integrates theory and practice and prepares organizations to deal successfully with the challenges of growth and change. The theory of MBM is rooted in the Science of Human Action and is defined by five dimensions:
Vision: Determining where and how the organization can create the greatest long-term value.
Virtue and Talents: Helping ensure that people with the right values, skills and capabilities are hired, retained and developed.
Knowledge Processes: Creating, acquiring, sharing and applying relevant knowledge, and measuring and tracking profitability.
Decision Rights: Ensuring the right people are in the right roles with the right authority to make decisions and holding them accountable.
Incentives: Rewarding people according to the value they create for the organization.
When these dimensions are applied in an integrated, mutually reinforcing manner, they create continuous transformation and positive growth.