Cockpit
Statements
Indexed Strategy Controlling
Indexed Strategy Controlling measures only true operating performance, independent of external effects such as business cycles or changes in raw materials prices.
Measure your own performance
Indexed Strategy Controlling...
- ...uncovers misleading signals in reporting resulting from the impact of external effects such as economic cycles
- ...makes management reporting universally comparable and quantifies value contributions from financial metrics, time period and different business divisions, which is not possible without indexing
- ...alerts you to value gaps for your attention and management
Use indexing to manage your company
In the Operating Trends (graph below left), one can identify early market opportunities. For example, we see that Markets A, B and C move in parallel, while Market D is an outlier and Market E is counter-cyclical. When comparing your own financials against the Operating Trends, you can see your performance relative to the market. This indexed perspective neutralizes external effects which affect the entire market and which can lead to misleading signals in your reporting.
In the Operating Radar (graph below right), one identifies the Operating Ranks, from which one sees the value contribution of each financial metric. In the example, gross margin is driving growth, not sales growth. This indexed view provides early indications as to the effect of the strategy versus the effect of external factors on performance.
Taking an indexed approach doesn't require re-designing the reporting system but simply adjusting the presentation of your financial metrics.
What you get
The Obermatt Indexed Strategy Controlling product includes the following analysis tools:
You can also receive your personal, daily access to your indexed performance in the Obermatt Cockpit.
How it appears
In the example of the Swiss luxury goods company Richemont, you can see the type of data and analysis you would receive as part of the Indexed Strategy Controlling product: (PDF download 1MB).
Interested?
We conduct a historical backtesting with your own financials free of charge. Contact Us for a personal discussion.
Further information
Who has already implemented our solution-
How indexing operating performance works -
How you use indexing performance in bonus targets -
How you use indexing performance in investment decisions and valuation -