Analysis drives Performance
External factors distort your numbers. Relative performance uncovers the truth.
Better Identify Performance
The Obermatt Strategy Index puts performance in the right light. Companies recognize how their growth and restructuring projects perform, even if the markets are cyclical or far away from the home base. Companies who have used Obermatt’s Strategy Index over many years benefit from fewer performance inhibitors, better overview, and more growth.
- Fewer performance inhibitors: Performance inhibiting target and budget negotiations are mitigated. Their importance decreases with indexed performance assessment.
- Better overview: Lesser-known markets and regions become more transparent thanks to direct regional and segment performance comparisons.
- More growth: Overemphasis on cost reduction programs is mitigated through growth-promoting performance measurement (more on this and in the Neuer Zürcher Zeitung).
These advantages result in a more performance-focused orientation, which has previously suffered from performance inhibiting target- and budget-based controlling methods.
Measure performance easier
The Obermatt Strategy Index makes controlling and financial reporting simpler and more transparent. Because company performance is measured relative to the market, CFOs and controllers can create more effective and more relevant financial reports. You benefit in three ways:
- Neutrality: Indexing neutralizes the influence of external factors for an unbiased and transparent view on your company's performance. This helps to eliminate misleading signals.
- Comparability: Management reporting becomes universally comparable and thus becomes more meaningful.
- Simplicity: Financial reports become easier to understand for managers outside the financial world and thus more useful thanks to visual representations and easy to understand rankings.
Learn how to avoid misleading numbers. Watch the video or read the transcript.
Implementation within the company
To ensure an efficient and effective implementation of your Strategy Index, Obermatt works with you to establish how indexed operating performance can help to better and easier communicate your performance. Contact us to learn how to make your financial reporting more transparent, intuitive and effective.
Examples of indexed performance measurement
One approach to learn more about indexing is to review the indexed operating performance tools.
A good example for indexed performance measurement is the Obermatt CEO Ranking. The CEO Rankings are compiled based on indexed growth performance, indexed operational performance and indexed strategic (investment) performance. Subjective opinions do not matter. Therefore, the Obermatt CEO Rankings are more objective and more reliable than expert opinion and provide an alternative perspective to general public opinion which is often biased.
Companies can do the same with their business units. Corporate controlling profits from an early warning system and cycle independent warning signals, so that strategy implementation can be adapted quickly and effectively to external changing circumstances. The simplicity of the Obermatt Strategy Index is immediately understandable and action-oriented, even to financial laypersons.