Question

Explain why is it important to clearly understand what your business drivers and triggers are

Answer 1

Business Driver can be defined as component, process or resource that are important for business success and growth. It can also be defined as something that have imapct on business performance.

It is important to understand business driver as they help in determining the value of a business and these drivers requires constant monitoring to get latest trend in marketing. Business Drivers are key elements that help either to build or protect the value of business. These drivers can be identified as:

• Which are the factors that have significant impacy on business?
• which factors can be effectively managed?

Management should understand about the key drivers of business to run operation efficiently. These drivers helps in:

• it helps in improving the customer satisfaction
• it helps in improving product quality
• it helps in minimizing risk in business and etc.
• can work more efficiently
• help in reducing waste

Business Triggers are used to measure the business health and improve business performance. Management should develop measurements that are especially created to change performance level.

Organisation should set triggers that focused on the business important area. These triggers include Revenue, Profile, Cash flows etc.

It is important to understand Business Triggers clearly as it help business leaders to take immediate corrective actions and help in avoiding the consequences quickly.

• it also helps in investigate reason behind poor business performance
• it helps in analysing capabilities
• it helps in minimising thresholds