Technical Note | HBS Case Collection | March 2014

Performance and Value Analysis

by Eric Van den Steen

Abstract

This note introduces the Performance and Value Analysis (PVA) framework, an integrated framework to analyze strategic performance (i.e., performance corrected for temporary and random effects). This framework (quantitatively) decomposes a firm's performance into 3 consistent parts — common performance, value creation advantage, and bargaining advantage — and then provides frameworks to analyze each.

Keywords: Strategic Analysis; economic analysis; competitive advantage; sustainable competitive advantage; strategic planning; strategy; value creation; Value Capture; Strategy; Competitive Advantage; Strategic Planning; Competitive Strategy; Competency and Skills; Competition; Value Creation;

Citation:

Van den Steen, Eric. "Performance and Value Analysis." Harvard Business School Technical Note 714-490, March 2014.