The Business Drivers

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The Business Drivers

Posted on April 28, 2010 by Pieter van Schalkwyk

There are 6 business value drivers identified by Jack Alexander in his book Performance Dashboards and Analysis for Value Creation that are under management’s control to influence:

1. Sales Growth

2. Relative Pricing Strength

3. Operating Effectiveness

4. Capital Management

5. Cost of Capital

6. Intangibles, Credibility, Future Expectations

These business value drivers can be influenced through a pro-active performance management approach. Improving the business performance can be achieved through a number of mechanisms both hard and soft in the organisation. Business processes are one of the tangible mechanisms that can easily be addressed to impact business performance. Pro-active process management impact most of the value drivers in a direct fashion. It can influence sales growth, drive and manage operating effectiveness, assist with capital management and manage intangibles.

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