A Value Driver Tree maps how different organisational elements generate value — helping you identify the performance drivers that matter and where to focus resources.
What is a Value Driver Tree?
A Value Driver Tree is a mapping instrument for understanding how different organisational elements generate value. The root represents your vision, the branches show influencing factors, and the leaves indicate specific actions needed to achieve objectives. They apply across many contexts — from income planning to expense management and profit optimisation.
What can you do with one?
Organisations use Value Driver Trees to clarify which areas deserve focus for growth. Whether targeting customer acquisition, retention, product development or sales, mapping these drivers provides strategic direction for resource allocation and performance improvement.
How they work
Creating one means identifying your primary value drivers, then establishing how each contributes to overarching goals: identify the most important drivers, understand each driver's contribution, focus resources on high-impact areas, improve efficiency and profitability, and clarify improvement priorities. SAP Analytics Cloud incorporates Value Driver Tree functionality for visualisation and analysis.
The benefits
These frameworks provide clear visualisation of how elements impact business goals, forcing comprehensive consideration of all performance factors. They enable progress tracking and result measurement over time, revealing hidden opportunities that conventional analysis might overlook.
