A value driver tree defines the relationship between a company's financials and its major value driver areas through a graphical representation. It helps management easily identify the items that have the most impact on the company's overall value. It also allows them to easily track how any changes in those items can impact the company's value. It can also be used to identify a company's potential risks and opportunities.
A value driver tree can give an organization an improved understanding and encourage better alignmentby ensuring teams focus on the right areas.