Company / Market Based Management

Market-Based Management®

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.

Guiding Principles
1. INTEGRITY Conduct all affairs with integrity, for which courage is the foundation.
2. COMPLIANCE Strive for 10,000% compliance with all laws and regulations, which requires 100% of employees fully complying 100% of the time. Stop, think and ask.
3. VALUE CREATION Create long-term value by the economic means for customers, the company and society. Apply MBM to achieve superior results by making better decisions, pursuing safety and environmental excellence, eliminating waste, optimizing and innovating.
4. PRINCIPLED ENTREPRENEURSHIP™ Apply the judgment, responsibility, initiative, economic and critical thinking skills, and sense of urgency necessary to generate the greatest contribution, consistent with the company®s risk philosophy.
5. CUSTOMER FOCUS Understand and develop relationships with customers to profitably anticipate and satisfy their needs.
6. KNOWLEDGE Seek and use the best knowledge and proactively share your knowledge while embracing a challenge process. Develop measures that lead to profitable action.
7. CHANGE Anticipate and embrace change. Envision what could be, challenge the status quo and drive creative destruction through experimental discovery.
8. HUMILITY Exemplify humility and intellectual honesty. Constantly seek to understand and constructively deal with reality to create value and achieve personal improvement. Hold yourself and others accountable.
9. RESPECT Treat others with honesty, dignity, respect and sensitivity. Appreciate the value of diversity. Encourage and practice teamwork.
10. FULFILLMENT Find fulfillment and meaning in your work by fully developing your capabilities to produce results that create the greatest value.