This article presents a model of Managing and Coaching by Values (MBV-CBV) as an important philosophical and practical framework for leaders and executives to use in today's chaotic business and economic environment. We briefly discuss the evolution of the management philosophy from Management by Instruction (MBI) to Management by Objectives (MBO), and finally to Management by Values (MBV). Finally, we propose the concept of Coaching by Values (CBV) and a set of tools critical for effectively managing a values-based corporate environment.

Whereas values were once considered by managers as `too soft' to be included in any serious approach to management, they have now become a central part of the organizational strategy (Dolan et al, 2006). In the rapidly emerging world, and especially in the BRIC zone (Brazil, Russia, India and China), the concept of Management by Values (MBV) should become the principal driver for reengineering a sustainable and competitive culture. Moreover, the latter should be aligned with the vision and mission of the firm. In this article I argue that coaching by leaders and adapting a managing by values philosophy can perhaps be the only remedy for achieving excellence. The focus in these approaches is on simultaneous maintenance of an organization's core values and on their alignment with the strategic objectives of the organization.

The world is seeing a marked shift in management focus. Managers are being called on to exhibit higher standards of performance as a result of society's increased demands for professional responsibility, quality and customer service. Managers must be able to lead and facilitate necessary changes in order to respond to these expectations. The world has also become a more uncertain and complicated place. Managers must possess the abilities needed to confront continuous and increasing levels of complexity, both within and outside the organization. Previously managers made their decisions and met their goals almost solely on the basis of industry-specific marketing and financial information. In today's networked and unstable environment, however, many are now turning to complexity, chaos and systems theories as a way to see beyond short-term objectives and learn how to `survive and thrive' in a new economic order.

Effective Executive Magazine, Chaotic Business Environment, Economic Environment, Organizational Strategy, Management Focus, Corporate Environment, Corporate Culture, Organizational Structures, Management by Objectives, Mechanistic Systems, Economic-Pragmatic Values, Spanish Speaking Market, Workforce Demographics, Organizational Culture, Transformational Plans.