Value Creation Index - Explained
What is the Value Creation Index?
Written by J. Mance Gordon
Updated at April 21st, 2024
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What is the Value Creation Index?
The Value Creation Index, created by Cap Gemini, Ernst & Young, demonstrates the relationship between a company’s market valuation and the company’s non-financial performance (such as innovation, people, ideas, and brand).
Non-financial factors for creating value are difficult to quantify and are not accounted for in generally accepted accounting practices. Thus, these metrics go unreported.
Categories of Intangible Value Drivers
Categories of intangible performance that determine corporate value creation
- Innovation.
- Customer relations.
- Management capabilities.
- Alliances.
- Technology.
- Brand value.
- Employee relations.
- Environmental and community issues.
Related Topics
- How Strategies Arise
- Intended, Deliberate, Realized, and Emergent Strategies
- Management and Strategic Planning
- Mintzberg's Schools of Strategic Development
- Design School
- Planning School
- Positioning School
- Entrepreneurial School
- Cognitive School
- Learning School
- Power School
- Culture School
- Environmental School
- Configuration School
- Mintzberg's 5Ps of Strategy
- McKinseys 7s Model
- ***Industry Analysis to Build a Strategy***
- Strategic Analysis
- SWOT Analysis
- SPACE Analysis
- Situational Analysis - 7C
- Competition Profile Matrix
- Stakeholder Analysis
- Stakeholder Mapping
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- VMOST
- Core Competency
- VRIO Analysis
- Value Chain Analysis
- Internal Factor Analysis
- Value Creation Index
- Minimum Efficient Scale
- PEST(LE) Analysis
- Industry Lifecycle Analysis
- Company Lifecycle - Definition
- Porter's Five Forces
- Modes of Management
- External Factor Evaluation
- Business Performance Measurement
- Benchmarking
- Balanced Scorecard
- Economic Value Added
- Activity-Based Management
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- Business Activity Monitoring
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