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