Understanding Value Drivers Analysis in Performance Management: Can You Share Examples?

Hi Seniors, I am working on a project about Performance Management Systems. Could you please help me understand the term Value Drivers Analysis and its usage with some examples? I need this information as soon as possible.

Thank you very much.

Value drivers are similar to KRAs/KPIs. In PMS, value drivers are set and measured. In L&T, this practice is being followed.

Regards, Pon

Hi Pon, thank you for your response. Could you please explain to me how the Value Drivers are to be set?

Regards, Praise

Value drivers are set in the fields of:

1. Financial - Targets in value of production, sales, collection, etc. For higher levels - working capital, cash flow, Return on Capital Employed, Gross margin, etc.
2. Process - Operation target, customer satisfaction, quality, safety, etc.
3. People - Training & development.

You may devise according to the line of your business.

Regards,
Ponraj