Question
Value drivers are defined as factors that create wealth. Which of the following is NOT considered a leading measure: Customer loyalty Product innovation Employee satisfaction Net profit
Answer
3.9
(215 Votes)
Clara
Master · Tutor for 5 years
Answer
Net profit
Explanation
## Step 1: Value Drivers in business are elements favored or allocated within an organization that boost profitability, positively impacting the return/discounts rate to effectively improve its end value. There are two types of measures used in the performance measurement system: leading and lagging measures. Lagging measures, such as net profit, indicate the outcome that results from performance. Leading measures, such as customer loyalty, product innovation, and employee satisfaction, are actions that will drive or lead to the expected future performance.