Any organisation should identify its business drivers and attempt to maximize any that are under their control. Also to recognise that there are always external business drivers that they cannot influence, such as global economic conditions. As an organisation becomes more complex, identifying business drivers becomes more difficult. It therefore makes sense to continually assess, clarify and monitor business drivers. A micro driver is anything that could materially affect either a company’s earnings or the price of its stock.
Additional resources
He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem. Yes, certain leadership skills—communication, delegation, coaching, etc.—are universal.
The most common business drivers are:
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The Big Three: Key Issues Every CEO Must Tackle for Business Success
NAB has a range of business calculators and tools, along with a national network of business bankers to help you. An effective way to control debtors is to produce an aged list of debtors every week, showing which bills are overdue, and by how many days. Any payments that are overdue, suspect, or simply large should be highlighted and tracked so you can take prompt action. The key is consistency – late payers should know that you will unfailingly contact them. To make sure you don’t run out, calculate how much extra working capital you require to fund each extra 10% increase in monthly sales. If you need additional finance, we may have a business loan that could help.
- Each term includes unique information that you would not find anywhere else on the internet.
- It is a key component in decision-making, strategic planning, and prioritization of resources.
- Macro drivers are a big area of interest for fund companies running top-down strategies, as they’re often concerned with what the global investment themes will be over their time horizon.
- For example, you may be overstocking or purchasing stock that you cannot sell.
- We are exploring the use of an agile strategic planning process that links performance improvement to organizational agility.
“Business driver” – vocabulary & examples sentences
They are experts with real-world experience working in the tech industry and academia. The nominal interest rate is the stated annual rate without accounting for compounding within the year. The effective annual rate (EAR) includes the effects of intra-year compounding, providing a more accurate representation of the actual interest accrued. Examples of external drivers include customers, the economy, competitors, and regulatory agencies. A business driver is the root cause or the rationale for developing a new project. It explains why the project is needed and what expected solution the project will deliver upon its successful completion.
Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest. In this visual guide presented by our affiliate channel, Marketing Business Network on YouTube, we explain what a “Business Driver” is using straightforward language and easy-to-understand examples.
They can also rank drivers by level of influence, which may help them find groups that slip through the cracks. For example, a little-known department might actually play a key role in delivering a company’s product or service. Investing in that department could result in better returns for the business as a whole.
That’s why your goal should be to prioritize business drivers that best serve your organization. But identifying key behaviors will help you define your leadership culture. Depending on the scope of your leadership development program, you may be identifying the business drivers of your entire organization. Or you might be looking at the business drivers for a particular business unit, function, or department. And they’re the first step to identifying and prioritizing the key skills you want to build in any leadership development program. Once the most important business drivers have been identified (using the process above), it’s important to monitor the results of the business and make strategic decisions to improve performance in the future.