Understand where the company is today and where it needs to go


Financial and nonfinancial drivers interact in a company’s growth in value, as expressed in higher return on equity (ROE).
Underlying the drivers are powerful value enablers and levers.

The three key financial drivers capable of increasing enterprise value are:

  • Revenue - Market share growth - which investments in products and services will result in great customer satisfaction and loyalty.

  • Profit growth - what ways are simpler, cost effective, and easier for your organization to deliver.

  • Asset efficiency – including improving business processes and leveraging existing assets more effectively in terms of cycle time reductions and key employee leverage to focus on building deeper customer relationships.

Non-financial enterprise value drivers include:

  • Customer satisfaction – A key differentiator in a competitive marketplace, customer satisfaction measures the degree to which a customer’s expectations have been met or exceeded. This nonfinancial driver indirectly influences revenue and profit growth through improved brand value.

  • Employee satisfaction – focusing on employee needs establish a culture of loyalty, higher productivity and superior morale, and this is a primary engine of value creation.

  • Innovation – focusing on product innovation, process innovation driving operational improvements and organizational efficiency


Enterprise Value Multiplier Framework

Future growth is inextricably linked to the strength of a firm’s present business and the success of the investments it is making.

The 4 factors affecting the intrinsic value of a company are tied to the company’s ability to generate differentiated product offerings that will boost cash flow growth in the future.

Central to the Enterprise Value Multiplier Framework is the alignment of the dynamics of the five Levers of Value.
It can be applied at the corporate strategy level and at the business unit level.