top of page

Understanding Value Drivers: The Parts Behind Your Business's Engine

 

Executive Summary:

Value Drivers have been around for decades as a measurement of profitability, organizational excellence and as an indicator of future performance.   

​

They allow the business owner, key employees or potential investors or buyers to diagnose the business in manageable pieces while comparing those parts to known standards and measurements.

We use them to optimize areas within the business, to lift the entire business in areas of:

  • Growth

  • Transferable Value, and/or

  • Overall Organizational Excellence.

15057497_l (1)_edited.jpg

Further Understanding:

Just as a vehicle's perfomance depends on each individual part, your business's success relies on key value drivers that often remain unseen beneath the hood.  Too many people only peek under the hood when the "warning light" comes on, when something is truly wrong.  This reactive approach misses the rich opportunity to diagnose and strengthen the business engine throughout its growth cycle.  Business mechanics know, however, routine maintenance keeps your car performing at its optimum. 

​

Value drivers are like the parts of your business engine.  Financial components (such as revenue growth and profit margins) provide immediate power and benefits, while non-financial components (like brand strength and customer loyalty) produce the essential mileage that supports long-term growth.  Some are internal which should be totally under the control of the organization.  Some are external pressures that are harder to control, but nonetheless the business should know how to respond to and prepare for.

​

​What makes your business unique is its specific combination of these parts. While one company's engine might thrive on technological innovation, another's success might grow from the deep roots of customer service. The key is identifying and maintaining those parts that make your business profitable and productive.

We look at 16 Drivers, see how they're operating and see how we can build performance into what you already have.

The use of Value Driver "Maintenance" is a proven and time-tested solution for growth, used by business investors, sellers and buyers alike to provide comparable measurements of growth and profitability.

​

For a quick history and for further understanding, click here.

Fine tuning the right parts for your situation ensures scalable growth, both for top and bottom lines.

When you actively maintain your value drivers, you're essentially maintaining a powerful business. These careful diagnostics yield two vital objectives:

  1. Immediate performance: Enhanced operational efficiency and increased profitability.

  2. Future wealth: A more finely-tuned and maintained vehicle when it's time to sell, which is therefore worth more.

The M&A Perspective

Businesses change hands every day. M&A firms know that potential buyers carefully examine each part, understanding that a business machine's true value lies in its complete performance over time. Smart owners know that the same parts that produce today's performance also attract tomorrow's buyers.

13639751_l_edited.jpg

Essential Insights: 

  • Value drivers are the performance parts supporting your business's economic engine. 

  • Both internal and external conditions contribute performance. 

  • Regular maintenance ensures sustainable and scalable growth. 

  • Strategic maintenance, coupled with a management team acting as the "pit crew", creates a thriving growth culture.

 

Remember: The sooner you identify and maintain your business's vital parts, the stronger your business engine becomes – and growth in the natural outcome of your engine maintenance.​

Are unknown performance issues slowing down your growth acceleration?

8523485_l.jpg

Let's find out.

The value driver methodology is the fastest and most complete way to:

  • Build A Solid Foundation for Growth Beyond Just Industry Trends

  • Quickly Add 'Curb Appeal' and Value Before You Sell

  • Develop Organizational Excellence, with All the Value, Growth and Intrinsic Benefits Implied

​​

I'd like to have a conversation with you...just a simple chat.

Let's talk about your business and what you'd like to see in the future.  You can get your questions answered.  I can even offer a quick, initial assessment that will accurately determine the top drivers that, based on your goals, need your attention.

​

It's free.  It's easy.  It's just a chat with a lot of insight.

​

Why Not Book it Now?

bottom of page