Simmethod risk index
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The document describes the Simmethod Business Risk Index, a tool designed to measure and predict business strategy risks and execution effectiveness. It uses algorithms to analyze business data and provide a competitive intelligence framework that identifies strengths, weaknesses, risks, and opportunities. The index aims to enhance management's ability to execute strategies against competitors by providing insights through leading indicators and alerts.
Simmethod risk index
- 1. SIMMETHOD BUSINESS RISK INDEX How To Measure And Predict The Business Risk Of Your Strategy And Execution? 4/12/2015 1 www.simmethod.blogspot.com
- 2. SIMMETHOD How To Measure And Predict The Risk Of Your Strategy & Execution? In the words of Lou D'Ambrosio, former Sears CEO and president: • "Our first quarter was adversely impacted by unfavorable weather, economic pressures facing our customers and comparisons to last year's government-sponsored stimulus program related to the purchase of appliances”. 4/12/2015 www.simmethod.blogspot.com 2
- 3. SIMMETHOD How To Measure And Predict The Risk Of Your Strategy & Execution? • However, we also fell short on executing with excellence. We can not control the weather or economy or government spending. But we can control how we execute and leverage the potent set of assets we have." 4/12/2015 www.simmethod.blogspot.com 3
- 4. SIMMETHOD C-Level Leading Indicators In spite of billions of dollars spent on predictive analytics and business intelligence Why do companies fail to perform or continue to miss their targets? 3/20/2015 www.simmethod.blogspot.com 4
- 5. SIMMETHOD Strategy & Execution Performance Predictive Index And C-Level Risk Alerts Unlike product or process analytics or industry specific ratios, the SIMMETHOD algorithms: Review business data and stockholders valuation-decisions across business sectors and Build industry-agnostic holistic indices in order to: 4/12/2015 5www.simmethod.blogspot.com
- 6. SIMMETHOD Strategy & Execution Performance Predictive Index And Risk Alerts Identify, measure, correlate and Predict your strengths, weaknesses, risks and opportunities versus your competitors from inside or outside your industry and Receive C-level risk alerts linked to a competitive intelligence database 4/12/2015 6 www.simmethod.blogspot.com
- 7. The SIMMETHOD Algorithms SIMMETHOD Strategy & Execution Performance Predictive Index Stockholders valuation and management’s rating C-level strategy & execution Business model Management’s ability to strategize & execute against competitors Competitors strategy & execution 4/12/2015 7www.simmethod.blogspot.com
- 8. SIMMETHOD Algorithms: Measuring And Predicting The Risk Of Your Strategy & Execution SIMMETHOD Risk Index Sales Profit Cash Debt Overheads HR 4/12/2015 8 www.simmethod.blogspot.com
- 9. SIMMETHOD Risk Index (The higher the score the less risk) 0 2 4 6 8 10 12 14 SIMMETHOD Strategy & Execution Risk Index 4/12/2015 9 www.simmethod.blogspot.com SIMMETHOD Best-In-Class risk management enterprises
- 10. SIMMETHOD Risk Index (The higher the score the less risk) 0 1 2 3 4 5 6 SIMMETHOD Strategy & Execution Risk Index (2nd quartile) 4/12/2015 10 www.simmethod.blogspot.com
- 11. SIMMETHOD Risk Index (The higher the score the less risk) -4.5 -4 -3.5 -3 -2.5 -2 -1.5 -1 -0.5 0 SIMMETHOD Risk Index (3rd quartile) 4/12/2015 11 www.simmethod.blogspot.com Twitter’s SIMMETHOD Risk Index
- 12. SIMMETHOD Risk Index (The higher the score the less risk) -12 -10 -8 -6 -4 -2 0 SIMMETHOD Risk Index (4th quartile) 4/12/2015 12 www.simmethod.blogspot.com The SIMMETHOD strategy & execution high risk enterprises
- 13. SIMMETHOD Strategy & Execution Performance Predictive Index 0 10 20 30 40 50 60 70 80 SIMMETHOD Management Controllable Resources Index SIMMETHOD Strategy & Execution Performance Predictive Index 4/12/2015 13www.simmethod.blogspot.com
- 14. SIMMETHOD Strategy & Execution Performance Predictive Index -10 -5 0 5 10 15 20 25 30 35 SIMMETHOD Management Controllable Resources Index SIMMETHOD Strategy & Execution Performance Predictive Index 4/12/2015 14www.simmethod.blogspot.com
- 15. SIMMETHOD Strategy & Execution Performance Predictive Index -30 -25 -20 -15 -10 -5 0 SIMMETHOD Management Controllable Resources Index SIMMETHOD Strategy & Execution Performance Predictive Index 4/12/2015 15www.simmethod.blogspot.com The Strategy & Execution Performance Predictive Index is a new context, holistic and industry agnostic index able to provide a C- level view of your risk and performance
- 16. SIMMETHOD Strategy & Execution Performance Predictive Index -60 -50 -40 -30 -20 -10 0 AT&T Atos ThomasCook Adecco GrupoTelevisa FidelityNational… ComputerSciences Sodexco Verizoncomm AmericanExpress TimeWarnerCable CompalElecronics HP Expedia Capgemini Comcast Libertyinteractive Telefonica VeriskAnalytics Cablevision Centurylink Innolux SIMMETHOD Management Controllable Resources Index SIMMETHOD Strategy & Execution Performance Predictive Index 4/12/2015 16www.simmethod.blogspot.com
- 17. SIMMETHOD Link Between The Risk Index And Your Future Performance -50.00 -40.00 -30.00 -20.00 -10.00 0.00 10.00 20.00 30.00 40.00 50.00 60.00 Top 25% Top 50% Bottom 50% Bottom 25% SIMMETHOD avg Strategy & Execution Performance Predictive Index Margin SIMMETHOD Risk Index 4/12/2015 17 www.simmethod.blogspot.com
- 18. SIMMETHOD Link Between The Risk Index And Your Future Performance -20 -10 0 10 20 30 40 50 Top 25% Top 50% Bottom 50% Bottom 25% Enterprise value created by $1 of overheads SIMMETHOD Risk Index 4/12/2015 18 www.simmethod.blogspot.com
- 19. SIMMETHOD Link Between The Risk Index And Your Future Performance -50.00 -40.00 -30.00 -20.00 -10.00 0.00 10.00 20.00 30.00 40.00 50.00 60.00 Top 25% Top 50% Bottom 50% Bottom 25% SIMMETHOD avg Strategy & Execution Performance Predictive Index Enterprise value created by $1 of cash SIMMETHOD Risk Index 4/12/2015 19 www.simmethod.blogspot.com
- 20. SIMMETHOD Correlation between the Risk Index And The Strategy & Execution Performance Predictive Index 4/12/2015 www.simmethod.blogspot.com 20 0 10 20 30 40 50 60 70 80 SIMMETHOD Risk Index SIMMETHOD Strategy & Execution Performance Predictive Index
- 21. SIMMETHOD Correlation between the Risk Index And The Strategy & Execution Performance Predictive Index 4/12/2015 www.simmethod.blogspot.com 21 -60 -50 -40 -30 -20 -10 0 10 20 30 40 50 SIMMETHOD Risk Index SIMMETHOD Strategy & Execution Performance Predictive Index
- 22. SIMMETHOD Correlation between the Risk Index And The Strategy & Execution Performance Predictive Index -50 -40 -30 -20 -10 0 10 20 30 40 50 SIMMETHOD Risk Index SIMMETHOD Strategy & Execution Performance Predictive Index 4/12/2015 22 www.simmethod.blogspot.com
- 23. SIMMETHOD Correlation between the Risk Index And The Strategy & Execution Performance Predictive Index -60 -50 -40 -30 -20 -10 0 10 20 SIMMETHOD Risk Index SIMMETHOD Strategy & Execution Performance Predictive Index 4/12/2015 23 www.simmethod.blogspot.com
- 24. SIMMETHOD Strategy & Execution Performance Predictive Index And Risk Alerts SIMMETHOD’s Strategy & Execution Performance Predictive Indices and Risk Profiles are not deterministic. Businesses that act on their SIMMETHOD leading indicators and risk alerts will improve their performance. 4/12/2015 www.simmethod.blogspot.com 24
- 25. SIMMETHOD’s Disclaimer • The purpose of the SIMMETHOD Strategy & Execution Performance Predictive Index and risk and opportunities alerts is not to make a business right or wrong but rather contribute towards the understanding of management actions in comparison to industry’s peers and the SIMMETHOD Best In Class. 4/12/2015 www.simmethod.blogspot.com 25
- 26. SIMMETHOD’s Disclaimer • SIMMETHOD’s Global Strategy & Execution Performance Predictive Index and risk and opportunities alerts do not seek to be exact but rather serve as a conduit to ask better questions and seek better answers in the performance improvement, risk minimization and value creation journey. 4/12/2015 www.simmethod.blogspot.com 26
- 27. SIMMETHOD’s Disclaimer • Sometimes, the value of a metric in itself does not provide the greatest of insights, but valuable actionable knowledge is gained from its ability to provide a trend or a common comparison yardstick with other businesses across a range of industries. 4/12/2015 www.simmethod.blogspot.com 27
- 28. SIMMETHOD’s Disclaimer • This Presentation is for informational purpose only and SIMMETHOD shall not be liable for the contents of the Presentation or for any damage incurred or alleged to be incurred to any of the businesses included in the Presentation as a result of its content. 4/12/2015 www.simmethod.blogspot.com 28
- 29. Jorge Oscar Tabacman jtabacman@gmail.com Twitter ID: SIMMETHOD SIMMETHOD A new way to measure and predict the risk and performance of your business and alert you of new threats and opportunities 4/12/2015 29www.simmethod.blogspot.com