What is this practice and how effective is it?

Key value drivers are the processes and practices that have the greatest impact on shareholder value. Valuation theory tells us that the market value of the firm is the sum of the present value of its future free cash flows. But what drives these cash flows? There are a small number of key value drivers, but few organizations understand what they are or how to maximize their impact. We will look more deeply at the value-driver model and suggest ways of identifying key value drivers and how managers can best use their power.

Alternative names and related topics: performance drivers; driver analysis; shareholder value analysis

A key value driver (KVD) is any variable that drives ...

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