Value Driver Trees are a good tool to use for modeling business scenarios and allow you to visualize the flow of a business or its operations. More importantly, these visualizations allow analysts to map their key operational processes to their most important business…

Many surveys have repeatedly shown that financial planning activities are complex, iterative and time-consuming. According to a survey of 500+ senior finance professionals, 42% of organizations take one to three months to complete their budget, and 32% take three to…

At its most basic form, a Value Driver Tree is just a visual representation of a business model, with a mathematical or a logical relationship mapping the key business performance indicators (KPI’s) and the operational drivers driving the business. When coming up…

Jack Welch, the former CEO of General Electric once characterized budgeting as follows:It sucks the energy, time, fun, and big dreams out of an organization. It hides opportunity and stunts growth. It brings out the most unproductive behaviors in an…

In the preceding blogs, we took a quick look at the origins of Value Driver Tree and a few reasons why they are making a comeback. Let’s now take a look at some of the key business use cases for Value Driver Tree. Note that Value Driver Tree models facilitate…

In the previous blog, we took a quick look at Value Driver Tree and explored its origins dating to the 1920s. While specific sectors such as mining have seen strong value driver tree adoption, it is only recently that enterprises have taken a renewed interest in the…

The Value Driver Tree traces its origin to 1920s, when DuPont used a visual model to define Return on Investment (ROI) as a function of profitability, asset turnover and financial leverage – all of which were broken down further. The model helped the firm understand the…