VDMN: A Graphical Notation for Modelling Value Driver Trees

TL;DR

This paper introduces the Value Driver Modelling Notation (VDMN), a systematic graphical notation designed to improve the consistency and clarity of Value Driver Tree models used in business decision-making.

Contribution

The paper presents VDMN, a new graphical notation with semantic constructs and syntax, to standardize and support the modelling of Value Driver Trees.

Findings

VDMN supports consistent VDT modelling

Expert interviews confirm VDMN's utility

Case studies demonstrate practical application

Abstract

Value Driver Trees (VDTs) are conceptual models used to illustrate and analyse the causal relationships between key performance indicators and business outcomes, thereby supporting managerial decision-making and value-based management. Despite their increasing application, there are still no systematic guidelines for the modelling of such conceptual models. To fill this gap, this study introduces the Value Driver Modelling Notation (VDMN), a graphical notation developed to systematically guide VDT modelling. This notation includes a comprehensive set of semantic constructs and an intuitive graphical syntax. To evaluate its practical utility, the VDMN was applied in two case studies and assessed through expert interviews. The results show that the notation supports a consistent and comprehensible modelling of VDTs. The VDMN thus represents a significant step towards the systematisation and standardisation of VDT modelling.