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Statements

Strategy Index

The Obermatt Strategy Index measures only true operating performance, independent of external effects such as business cycles or changes in raw materials prices.

Measure your own performance

The strategy index ...

...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.