The document discusses SIMMETHOD, a strategy that uses predictive indices to measure corporate risk, performance, and value creation. It highlights how SIMMETHOD identifies best-in-class performers and provides alerts about risks and opportunities by comparing companies' metrics. Several charts show how best-in-class companies in 2012-2013 outperformed other companies on key financial metrics like profit margins, cash generated per employee, and value created per employee.
2. The Way We Measure Corporate
Performance Is Broken
Why do
Businesses
fail?
Blockbuster
Borders
Circuit City
Mervyns
Wachovia
Washington
Mutual
Linen n’
Things
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4. SIMMETHOD Strategy and Execution
Performance Predictive Index
Technology, Software, Social
Media, Human Resources and
Business services
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5. SIMMETHOD Strategy and Execution
Performance Predictive Index
In an article dated March 27 and titled “The
Mini Tech Crash Is The Biggest Story In The
Market Right Now” Business Insider’s Joe
Weisenthal commented:
• “There’s been a lot of pain in a specific area:
High beta and tech. This tweet from Sammy
The Walrus captures a lot of it: We have a
mini tech stock crash going on”.
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6. SIMMETHOD Strategy and Execution
Performance Predictive Index
• “AMZN at 6-month lows. Down 12% in a
week. GOOG down 6% in a week
• Twitter down 14% in 3 days
• Others have been getting hammered as well.
• Facebook is down to $59 from a high of $72.
• The Social Media ETF SOCL is down over 2.5%
just today and it is down 17% from recent
highs”.
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7. Disrupting the Way We Measure
Corporate Risk and Performance
SIMMETHOD
Tomorrow’s growth and profit
hidden in today’s Strategy &
Execution Performance
Predictive Index
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8. Disrupting the Way We Measure
Corporate Risk and Performance
Key predictive questions:
• Are your C-level risk and
performance metrics and ratios
based on industrial-era analytics
that were not designed to
capture intangible values or the
dynamic industry-agnostic
relationships between businesses
and their value chains?
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9. Strategy and Execution Performance
Predictive Index
• How to link your C-level
management-decisions,
resources, business
processes, metrics,
strategy and execution to
your future risk,
performance and
outcomes and
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10. Strategy and Execution Performance
Predictive Index
• Compare them against
the market’s Best-In-Class
in order to receive early
warning risk and
opportunities alerts from
within and outside your
industry?
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11. The Value Creation Power of the
SIMMETHOD Best-in-Class
The link between a high
score on the SIMMETHOD
Strategy & Execution
Performance Predictive
Index and Best-In-Class
performance
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12. Linking Your Management Controllable
Resources to Your Risk and Performance
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12
-20
-10
0
10
20
30
40
50
60
NHN
Visa
Apple
Mastercard
Checkpoint
Baidu
Infosys
Netease
Google
Yahoo
Cognizant
Priceline
TataServices
Cielo
Intuit
AOL
Paychex
Wipro
Vmware
Aggreko
Accenture
Experian
Dassault
HCL
Moody's
Oracle
Citrix
LinkedIn
Microsoft
Amadeus
SAP
H&RBlock
DKSH
IBM
Salesforce
Amazon
Ebay
Teradata
Management
Controllable
Resources Index
Strategy &
Execution
Performance
Predictive Index
Minimum
Company Business
Model Index
Value Creation
Index
13. Linking Your Management Controllable
Resources to Your Risk and Performance
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-50
-40
-30
-20
-10
0
10
20
Adobe
Brambles
ThomasCook
VeriskAnalytics
EMC
AutomaticData
Facebook
HoneywellInternational
Randstad
CompalElecronics
HP
WesternUnion
QuantaComputer
Alliance
UnitedTechnology
Innolux
CA
Fiserv
Sodexco
Tui
NetApp
Manpower
Dell
ComputerSciences
FidelityNationalInformation
Adecco
Symantec
Capgemini
Atos
Expedia
AmericanExpress
Management
Controllable
Resources Index
Strategy &
Execution
Performance
Predictive Index
Minimum
Company
Business Model
Index
Value Creation
Index
14. Partial Profiles of the SIMMETHOD
2012 and 2013 Best-In-Class
• Partial profiles of the
2012 and 2013 Best-In-
Class as selected by the
Strategy and Execution
Performance Predictive
Index
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15. The Strategy and Execution
Performance Predictive Index
High score index =
reduced risk and Best-
In-Class performance
Low score index =
increased risk and
below average
performance
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16. The Value Creation Power of the
SIMMETHOD 2012 Best-In-Class
Best-In-Class create
$2.9 of value for
each $1 of assets
Laggards create
$0.90 of value for
each $1 of assets
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17. The Value Creation Power of the
SIMMETHOD 2013 Best-In-Class
Best-In-Class create
$2.5 of value for
each $1 of assets
Laggards create $1
of value for each
$1 of assets
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21. SIMMETHOD’s 2013 Bottom 50%
$1 of
overheads
generates
$0.60 of
profits
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22. SIMMETHOD’s 2012 Best-in-Class and
Laggards’ Index
Cash generated by
each employee =
$275K
Cash generated by
each employee =
$47K
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26. SIMMETHOD’s 2013 Bottom 50%
Overheads
needed to
support each
employee =
$119K
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27. SIMMETHOD’s 2012 Best-in-Class and
Laggards’ Index
Profit generated
by each employee
= $147K
Profit generated
by each
employee = $24K
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29. SIMMETHOD’s 2013 Bottom 50%
Profit
created by
each
employee =
$27K
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30. SIMMETHOD’s 2012 Best-in-Class and
Laggards’ Index
Value created by
each employee =
$2.8M
Value created by
each employee =
$420K
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35. C-Level Strategy & Execution Performance
Predictive Index and Risk Alerts
• When the Best-In-Class and
your SIMMETHOD C-Level
indices are moving in opposite
directions, your ability to
compete weakens in proportion
to your widening gap to the
Best-In-Class
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36. SIMMETHOD
Risk and Opportunities Alerts
The SIMMETHOD algorithms review business
data and stockholders valuation-decisions
across business sectors and build industry-
agnostic indices in order to:
• Identify, measure, correlate and predict your
strengths, weaknesses, risks and
opportunities against your current and
potential future competitors from inside
or outside your industry.
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37. SIMMETHOD
2014 Industry and Business Trends
• SIMMETHOD’s Strategy & Execution
Performance Predictive Indices and trends
are not deterministic. Businesses that acted
on their SIMMETHOD leading indicators and
risk alerts will improve their 2014
performance as will be shown in the
forthcoming update of the SIMMETHOD
database, performance predictive
indices and correlations.
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38. SIMMETHOD
Risk and Opportunities Alerts
SIMMETHOD is in the top
1% of most viewed in
Slideshare and has been
“Hot” on LinkedIn,
Twitter and Facebook 47
times.
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39. 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
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