PPM/PGM Overview

1. Performance Predictability/Predictive
Growth Modeling
Copyright - 2016- Eric G.
Woods - Do not duplicate

2. PPM/PGM
• PPM/PGM
– Performance Predictability Model (PPM) is used for pre acquisition valuation to determine
the likelihood of continued, accelerated, or declining performance after the acquisition
utilizing non-financial leading indicators
– Predictive Growth Model (PGM) is used to identify key elements that are restricting short
or long term revenue and growth within an existing company, division, or product set.
• Consists of 3 primary elements
– Health Rating Image – a visual identifier of strengths and weaknesses
– Significance Tornado – adjusts HRI into specific priorities
– PPM/PGM Report – detailed report of findings and recommendations
• Health Rating Image
– 6 main categories or “Index Groupings” (IG)
– 24 scaled subcategories “Vertical Index Line” (VIL)
– Concentric circles represent “Risk Measurement Level” (RML) – PPM only
• Significance Tornado
– Adjusts VIL measurements to identify specific significance to performance/growth goals
– Removes outliers from VIS measurements
– Utilizes IG co-efficient variables to adjust for industry accuracy

3. 20 point Vertical Index Scale (VIS) on 24
Vertical Index Lines (VIL) within 6 Index
Groupings (IG)
• Vision
– Executive Leadership/ Vision
– Team Understanding/acceptance
– Aligned with client need
– Future Industry Aligned Vision
• Product
– Quality
– Diversity
– Availability
– Key product knowledge
• Marketing/Database
– Strategy/Market Segmentation
– Database Quality
– Marketing/Sales Integration
– Delivery Effectiveness
• Sales
– Leadership Rating
– Database/Customer Access/Management
– Sales Efficiency
– Tool Usage/Forecasting Ability
• Execution
– On time delivery
– Order Accuracy/Initial Installation
– Punch/Installation Follow-up
– Partner participation/Brand Visibility
• Association Partners
– Association Knowledge
– Member Participation
– Marketing Opportunities/Database Access
– Endorsements
Data collection for VIS rating
established through, interviews,
questionnaires, database
review, online research,
costumer surveys in each Index
Grouping (IL)
Building the PPM/PGM

4. Understanding the HRI
Visio
n
Partners
hips
Produ
ct
Execut
ion
Market
ing/Dat
abase
Vertical Index
Lines (24) –
each line has
a VIS of 20 Index
Grouping
(IG) – Total
of 6
Risk Measurement Level (high, medium, low)

5. Turning Data in to an Image
Once collected, data is valued and
plotted to create the Health Rating
Image

6. Copyright - 2012 - Eric G.
Woods - Do not duplicate
Vision
Partnerships
Product
Execution
Sales
Marketing
/Database
Health Rating Image

7. Turning the HRI into Action
Running the HRI through the
PPM/PGM Algorithm

8. Significance Tornado
Each element on the Significance Tornado will have a numeric
value and “tail”. The value determines the rating, the tail
determines the confidence factor. Ex: Association Memberships
– V=156 with a Tail of 2.5 (Tails are represented in red).
-20 0 20 40 60 80 100 120 140 160 180
Marketing Deliverables
Marketing Database
Order Accuracy
Sales Tools
Sales Leadership
Product Knowledge
Partner Confidence
Product availability
On time Delivery
Marketing Strategy
Product Diversity
Post Installation
Sales Effeciency
Shared Marketing
Member Participation
Association Engagements
Assoc Membership
Tornado Tail

9. Final Report
All the data collected is published in
a final report identifying
methodologies, results,
recommendations, and calculations
and data findings

10. Report
Report includes:
• Summary data in
HRI, full rating
report, Significance
Tornado, individual
VIL information
• PowerPoint
presentation with
findings and
recommendations
• Identification and
explanations of
findings and
primary concerns
• Strategies, actions,
tactics, ownership,
and measurements
to address and fix
low marks
• Overall Health
Score (PPM only)
Sales Efficiency
Sales Database
Marketing
Database
Marketing Strategy
Association Participation
Association Branding
Forecasting
Vision
Copyright – Eric G Woods - 2016
The PPM/PGM Report