Enterprise Value Map
Deloitte Enterprise Value MapTM
(Practical paths to increase shareholder value)
It’s easy to say shareholder value is important.
Not so easy to make it influence the decisions that are made every day: where to spend time and resources, how best to get things done, and, ultimately, how to win in the competitive marketplace. This Map is designed to accelerate the connection between actions you can take and shareholder value. It is not rocket science and it is not complete, but it can jump-start the process of focusing on the things that matter most and then choosing practical ways to get them done.
Here are two simple ways to use it:
Start at the top. Working your way down, at each step ask yourself, How will we improve this? This will help ensure that your tactics support your objectives.
Start at the bottom. Working your way up, at each step ask yourself, Why are we doing this? This will help ensure that every tactic leads to shareholder value.
Operating Margin
Revenue Growth
Asset Efficiency
(after taxes)
Expectations
How Value is Created
(Value Drivers)
Volume
Acquire New Customers
Selling, General &
Administrative
(SG&A)
Price Realization
Retain and Grow Current
Customers
Leverage IncomeGenerating Assets
Improve
Improve
Improve
Improve
Customer Interaction
Efficiency
Strengthen Pricing
Income Taxes
Cost of Goods Sold
(COGS)
Corporate/Shared Services
Development & Production
Efficiency
Efficiency
Inventory
Receivables
& Payables
Company Strengths
Improve
Improve
Improve
Inventory
Receivables & Payables
Efficiency
Efficiency
Efficiency
External Factors
Improve
PP&E
Efficiency
Efficiency
Improve
Income Tax
Logistics & Service
Provision
What You Can Do
Property, Plant &
Equipment
(PP&E)
Management & Governance
Effectiveness
Improve
Execution Capabilities
(Improvement Levers: Business
(Practical paths to increase shareholder value)
It’s easy to say shareholder value is important.
Not so easy to make it influence the decisions that are made every day: where to spend time and resources, how best to get things done, and, ultimately, how to win in the competitive marketplace. This Map is designed to accelerate the connection between actions you can take and shareholder value. It is not rocket science and it is not complete, but it can jump-start the process of focusing on the things that matter most and then choosing practical ways to get them done.
Here are two simple ways to use it:
Start at the top. Working your way down, at each step ask yourself, How will we improve this? This will help ensure that your tactics support your objectives.
Start at the bottom. Working your way up, at each step ask yourself, Why are we doing this? This will help ensure that every tactic leads to shareholder value.
Operating Margin
Revenue Growth
Asset Efficiency
(after taxes)
Expectations
How Value is Created
(Value Drivers)
Volume
Acquire New Customers
Selling, General &
Administrative
(SG&A)
Price Realization
Retain and Grow Current
Customers
Leverage IncomeGenerating Assets
Improve
Improve
Improve
Improve
Customer Interaction
Efficiency
Strengthen Pricing
Income Taxes
Cost of Goods Sold
(COGS)
Corporate/Shared Services
Development & Production
Efficiency
Efficiency
Inventory
Receivables
& Payables
Company Strengths
Improve
Improve
Improve
Inventory
Receivables & Payables
Efficiency
Efficiency
Efficiency
External Factors
Improve
PP&E
Efficiency
Efficiency
Improve
Income Tax
Logistics & Service
Provision
What You Can Do
Property, Plant &
Equipment
(PP&E)
Management & Governance
Effectiveness
Improve
Execution Capabilities
(Improvement Levers: Business