Difference between revisions of "Business Drivers"
(A business driver is a resource, process or condition that is vital for the continued success and growth of a business. A company must identify its business drivers and attempt to maximize any that are under their control.) |
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− | A business driver is a resource, process or condition that is vital for the continued success and growth of a business. A company must identify its business drivers and attempt to maximize any that are under their control. There are always outside business drivers that a company cannot influence, such as economic conditions or trade relations with other nations.<ref>Definition - What does Business Driver mean? [https://www.techopedia.com/definition/28013/business-driver Techopedia]</ref> | + | A [[business]] driver is a resource, [[process]] or condition that is vital for the continued success and growth of a business. A company must identify its business drivers and attempt to maximize any that are under their [[control]]. There are always outside business drivers that a company cannot influence, such as economic conditions or trade relations with other nations.<ref>Definition - What does Business Driver mean? [https://www.techopedia.com/definition/28013/business-driver Techopedia]</ref> |
− | Identifying and monitoring the key drivers of your business is critical to boosting profitability. A key business driver is something that has a major impact on the performance of your specific business. A whole range of internal and external factors affects the performance of every small business. The secret is to focus on a handful of key drivers that: | + | Identifying and monitoring the key drivers of your business is critical to boosting profitability. A key business driver is something that has a major [[impact]] on the performance of your specific business. A whole range of internal and external factors affects the performance of every small business. The secret is to focus on a handful of key drivers that: |
*reflect the performance and progress of your business | *reflect the performance and progress of your business | ||
*are measurable | *are measurable | ||
− | *can be compared to a standard, such as a budget or last year's figures, or an industry average | + | *can be compared to a [[standard]], such as a [[budget]] or last year's figures, or an [[industry]] average |
*can be acted upon | *can be acted upon | ||
The range of business drivers varies enormously from business to business. For example: | The range of business drivers varies enormously from business to business. For example: | ||
− | *sales leads in a capital goods or service business | + | *sales leads in a [[capital]] goods or [[service]] business |
*sales per square meter in a retail business | *sales per square meter in a retail business | ||
*machine downtime in a factory | *machine downtime in a factory | ||
*'first time fix' in a maintenance business | *'first time fix' in a maintenance business | ||
− | Even direct competitors may use different drivers to improve their business performance. For example, prime location is not a key driver for an internet-based business selling computer parts, but it is for a 'bricks and mortar' competitor that relies on well-located retail stores to attract foot traffic.<ref>Identifying your Business Drivers [http://www.nab.com.au/business/small-business/cashflow-planning-and-tax/identify-business-drivers NAB]</ref> | + | Even direct competitors may use different drivers to improve their business performance. For example, prime location is not a key driver for an [[internet]]-based business selling [[computer]] parts, but it is for a 'bricks and mortar' competitor that relies on well-located retail stores to attract foot traffic.<ref>Identifying your Business Drivers [http://www.nab.com.au/business/small-business/cashflow-planning-and-tax/identify-business-drivers NAB]</ref> |
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===Further Reading=== | ===Further Reading=== | ||
*How to identify the Business Driver of my company? [http://evolvedesign.ie/visual-communication/identify-business-driver-company/ evolve design] | *How to identify the Business Driver of my company? [http://evolvedesign.ie/visual-communication/identify-business-driver-company/ evolve design] | ||
− | *Strategic Planning: Developing Business Drivers for Performance Improvement [https://insights.sei.cmu.edu/sei_blog/2012/11/strategic-planning-developing-business-drivers-for-performance-improvement.html cmu.edu] | + | *[[Strategic Planning]]: Developing Business Drivers for Performance [[Improvement]] [https://insights.sei.cmu.edu/sei_blog/2012/11/strategic-planning-developing-business-drivers-for-performance-improvement.html cmu.edu] |
Revision as of 14:11, 6 February 2021
A business driver is a resource, process or condition that is vital for the continued success and growth of a business. A company must identify its business drivers and attempt to maximize any that are under their control. There are always outside business drivers that a company cannot influence, such as economic conditions or trade relations with other nations.[1]
Identifying and monitoring the key drivers of your business is critical to boosting profitability. A key business driver is something that has a major impact on the performance of your specific business. A whole range of internal and external factors affects the performance of every small business. The secret is to focus on a handful of key drivers that:
- reflect the performance and progress of your business
- are measurable
- can be compared to a standard, such as a budget or last year's figures, or an industry average
- can be acted upon
The range of business drivers varies enormously from business to business. For example:
- sales leads in a capital goods or service business
- sales per square meter in a retail business
- machine downtime in a factory
- 'first time fix' in a maintenance business
Even direct competitors may use different drivers to improve their business performance. For example, prime location is not a key driver for an internet-based business selling computer parts, but it is for a 'bricks and mortar' competitor that relies on well-located retail stores to attract foot traffic.[2]
References
- ↑ Definition - What does Business Driver mean? Techopedia
- ↑ Identifying your Business Drivers NAB
Further Reading
- How to identify the Business Driver of my company? evolve design
- Strategic Planning: Developing Business Drivers for Performance Improvement cmu.edu