Business Driver Matrix
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8/6/2019 Business Driver Matrix http://slidepdf.com/reader/full/business-driver-matrix 1/2 performancecontroller.com http://ww w .performancecontroller.com/2010/11/business-driver-matrix/?pfstyle=w p Performance Controller » In organizations, does having a Business Driver Matrix bind outcomes based thinking and help plan and control resources that deliver them? Gordon Wood joomla ecommerce templates massage "However beautiful the strategy, you should occasionally look at the results"...WC Print Recently, I was fortunate to join some senior people from diverse sectors for a strategic planning workshop. This session was sponsored by ZAP Technology and one of the aims of the session was to decide what drives a business and the bases of measures of performance that may be applied. The outcomes of these types of sessions typically differ in detail, but the fundamental activity motivators have on common thread. That is they are hierarchically driven by internal supply chains activity which are each in turn externally influenced. In our session a constraint was to link core business process in hierarchical internal supply order and assigning one internal and external driver to each. While client processes may haven more than one supply activity only one external diver would apply. With these constraints interesting leveling discussion pursued. The resulting matrix and how we got there I have found since leads to good debate so now I want to share a some of this. For example in a product based business, new product development may rank very high in the delivery process that drives revenue generating activity. Whereas a category retail business may have advertising ranked much higher. In a service business alliances may be a very strong influence so marketing and sales campaigns may be the primary enabler. But when we boil it all down we asked what really generates the business revenue? The combination of enablers in the delivery process will help but our session discussion resolved that it was driven by the outcomes of the planning activity. To understand this more, the full planning process which most organization take seriously, is ultimately about determining direction, and levels of activity needed to achieve the organization strategic objectives This will also including adequate return to satisfy the investor. What this does in practical terms is set up and agree goals and incentives to employ and motivate the sales force who then goes out to get the business. This in turn determines and drives delivery process objectives and defines the level resources required to met them in a then more detail resource allocation and budgeting process. Now back to our session as we extended this thinking through the value chain in our typical business generation and delivery processes As we stepped through it we came up with a matrix of internal performance based measures attached to each process and linked to one external influencers that nay constrain or propel the business. The following table shows what we came up with as a result after several brainstorming and filtering sessions. Without even considering what industry, the session produced range of external influences that typically drive any business. The table here has some types of sensible measure criteria that distilled out this into this simplified list from the group inputs. This was the outcome: External Driver Basis of Measure
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Transcript of Business Driver Matrix
8/6/2019 Business Driver Matrix
http://slidepdf.com/reader/full/business-driver-matrix 1/2
performancecontroller.com http://ww w .performancecontroller.com/2010/11/business-driver-matrix/?pfstyle=w p
Performance Controller » In organizations, does having aBusiness Driver Matrix bind outcomes based thinking andhelp plan and control resources that deliver them?
Gordon Wood joomla ecommerce templates massage
"However beautiful the strategy, you should occasionally look at the results"...WC Print
Recently, I was fortunate to join some senior people from diverse sectors for a strategicplanning workshop. This session was sponsored by ZAP Technology and one of the aims of the session was to decide what drives a business and the bases of measures of performancethat may be applied.
The outcomes of these types of sessions typically differ in detail, but the fundamental activity motivators have
on common thread. That is they are hierarchicallydriven by internal supply chains activity which are eachin turn externally influenced.
In our session a constraint was to link core businessprocess in hierarchical internal supply order andassigning one internal and external driver to each.While client processes may haven more than onesupply activity only one external diver would apply. Withthese constraints interesting leveling discussion pursued. The resulting matrix and how we got there I havefound since leads to good debate so now I want to share a some of this.
For example in a product based business, new product development may rank very high in the deliveryprocess that drives revenue generating activity. Whereas a category retail business may have advertisingranked much higher. In a service business alliances may be a very strong influence so marketing and salescampaigns may be the primary enabler.
But when we boil it all down we asked what really generates the business revenue? The combinationof enablers in the delivery process will help but our session discussion resolved that it was driven by theoutcomes of the planning activity.
To understand this more, the full planning process which most organization take seriously, is ultimately aboutdetermining direction, and levels of activity needed to achieve the organization strategic objectives This willalso including adequate return to satisfy the investor.
What this does in practical terms is set up and agree goals and incentives to employ and motivate the salesforce who then goes out to get the business. This in turn determines and drives delivery process objectivesand defines the level resources required to met them in a then more detail resource allocation andbudgeting process.
Now back to our session as we extended this thinking through the value chain in our typical businessgeneration and delivery processes As we stepped through it we came up with a matrix of internalperformance based measures attached to each process and linked to one external influencers that nayconstrain or propel the business.
The following table shows what we came up with as a result after several brainstorming and filteringsessions. Without even considering what industry, the session produced range of external influences that
typically drive any business. The table here has some types of sensible measure criteria that distilled outthis into this simplified list from the group inputs.
This was the outcome:
External Driver Basis of Measure
8/6/2019 Business Driver Matrix
http://slidepdf.com/reader/full/business-driver-matrix 2/2
Investors Asset PerformanceProduct New BusinessConsumer Capture / RetentionPresence Market shareSupplier Competitive ReliabilityCompetitor Competitive Capability Alliances Growth & RiskStandards Compliance Disclosure
We discussed this further we noted that For a high volume business retailer, presence and market share areimportant. In Hotels and Hostility the driver may be alliances with agents in the travel and tourism industry. Aspecialist or niche business should rank high their measure of competitive capability to ensure they canmaintain advantage they may have in this class of business. Whereas a financial services business sellinglife insurance may have alliances with banks to bundle insurance with their lending offerings.
It was interesting when I repeated the exercise my self with another group later. this was a more detailoutcome that gave a similar but different answer. I will post it here as a reference too.
Driver Basis of Measure Asset Risk based return on investment
Capability Market share on channel productMarket shareQuality of Process integration and OutcomesSales force capability effectivenessProcess effectivenessStrategy objectives achievementQuality of data IntegrationProcess outcomes qualityProcess efficiencyBusiness Process Efficiency
Investment Return On Investment
Leadership Market Share Growth & Asset RiskLeads New Business Lead conversionProduct Unit cost
New Product Cycle ReplacementProfit Expense contribution
Supply chain effectivenessAudit & compliance costsContribution recovery
Retention churn rateRevenue Item value for sales Unit /channel
Business Generated
MarginCustomer GrowthDelivery timelinessCustomer RetentionBusiness Growth
Unit cost Supplier benchmark
I found this quite useful to springboard ideas to get myself on the understanding page of what drives relatedprocess activity in terms of the supply chain relationships inside a business. I hope it is useful for you too.
