Value drivers for management and value generation: Financial analysis in a Higher Education Institution

Abstract

Objective. To describe, from a value management perspective, the impact of applying operational value drivers and microvalue drivers in a Private Higher Education Institution located in Medellín, Colombia. Methodology. This is qualitative research framed as a descriptive case study. It employs three stages to identify, determine, and propose value drivers for generating and managing value within the institution. Tools used for data collection included: (i) A reporting table to determine institutional microvalue drivers; (ii) financial statements from the last three years, and (iii) a report and recommendation for implementing value drivers within the organization. Results. The results showed it does not effectively build value despite the Private Higher Education Institution generating surpluses. Moreover, the institution’s performance analysis reveals that operational and non-operational expenses have grown at rates that overshadow revenue growth. Conclusions. The study concludes that while the institution is profitable, it struggles with value creation due to onerous asset costs relative to net surpluses. The findings indicate potential medium to long-term liquidity issues due to inefficient working capital management and increased delinquency rates, suggesting that profitability and liquidity drivers are not optimally managed.