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Obermatt's methods, metrics and products are new. But they are grounded in a firm foundation of finance and management theory, research and practice. This section places Obermatt's innovations in the larger context from which they evolved.
Beyond benchmarking, Obermatt indexes corporate operating performance to measure, rank and compare key financial ratios standardized as Operating Alpha—a measure of true operating performance independent of external factors.
Benchmarking is an important part of Performance Measurement, which is itself a key process of Performance Management. Value-Based Management is the most widely accepted and implemented form of modern Performance Management.
Indexing Operating Performance to measure Operating Alpha represents the next step in Value-Based Management. It is the most current and sophisticated approach to measuring operating performance today.
In this section you will find information about general Performance Measurement and Performance Management, also known as Business Intelligence (BI), Business Performance Measurement (BPM), or Corporate Performance Measurement (CPM).
You will also find more specific information about Value-Based Management: its theoretical origins, metrics, history and applications. This includes an explanation of the importance of Cost of Capital, EVA or economic profit, and value-based incentive compensation systems.
Finally, you will find detailed information about Obermatt's method of Indexing Operating Performance to measure Operating Alpha. You can view the new tools we use to represent indexed performance and Operating Alpha graphically. And you can learn about the unique advantages and applications of ranking relative performance for bonus systems, strategy and investing.