SIMMETHOD
A new way to measure and predict
your corporate risk and
performance
Was Salesforce Performance
Predictable?

3/...
SIMMETHOD Strategy & Execution
Performance Predictive Index
On February 28, Seeking Alpha Trefis
Notes of the Day publishe...
SIMMETHOD Strategy & Execution
Performance Predictive Index
• “Margins for the company continued to
tread a downward traje...
SIMMETHOD Strategy & Execution
Performance Predictive Index
• “We expect to see continued erosion in
margins for Salesforc...
SIMMETHOD Strategy & Execution
Performance Predictive Index
• “What’s more worrying is that
Salesforce’s loss before tax d...
SIMMETHOD

•

3/3/2014

Was Salesforce performance
predictable based on the
SIMMETHOD Strategy and
Execution Performance
P...
SIMMETHOD
Risk and Opportunity Alerts

3/3/2014

WWW.SIMMETHOD.COM

7
The Way We Measure Corporate
Performance Is Broken
Mervyns

Circuit City

Wachovia

Washington
Mutual

Borders

Blockbuste...
The CEO Lament in the Business
Analytics Market
• We did not see it coming. All my
Divisions and Product’s Analytics
point...
Disrupting the Way We Measure
Corporate Risk and Performance
There are three main problems:
• The lack of a single industr...
Disrupting the Way We Measure
Corporate Risk and Performance
• Silos-analytics and leading indicators
that lead to erroneo...
Disrupting the Way We Measure
Corporate Risk and Performance
• C-level risk and performance metrics
and ratios based on in...
Silos Analytics Lead to Many Versions
of the Truth and Erroneous Decisions

3/3/2014

WWW.SIMMETHOD.COM

13
Lack of Business and Value-Chain
Leading Indicators and Risk Alerts
Maximum
Risk,
Minimum
Visibility

Company
view

Inward...
The Leading Indicators and Risk Alerts
of the Best-In-Class
Why do you need Industry Agnostic Leading
indicators and Risk/...
Your Gap to SIMMETHOD’s Best-In-Class
Determines Your Risk and Performance
Gap to B-I-C in
your industry

Your original
ta...
SIMMETHOD’s Disclaimer
• The purpose of the SIMMETHOD
Strategy/Execution Performance Predictive
Index, Reports and Risk/Op...
SIMMETHOD’s Disclaimer
• SIMMETHOD’s Strategy/Execution
Performance Predictive indices, metrics and
risk/opportunities ale...
SIMMETHOD’s Disclaimer
• Sometimes, the value of a metric in itself
does not provide the greatest of insights, but
valuabl...
SIMMETHOD’s Disclaimer
• This report is for informational purpose only
and SIMMETHOD shall not be liable for the
contents ...
SIMMETHOD

•

3/3/2014

Was Salesforce performance
predictable based on the
SIMMETHOD Strategy and
Execution Performance
P...
SIMMETHOD’s C-Level Indices Business
Trends 2012-2013
Salesforce and the Best-In-Class

The following C-Level indices show...
SIMMETHOD’s C-Level Indices Business
Trends 2012-2013
Salesforce and the Best-In-Class

• When the Best-In-Class and your
...
25

20

15

SIMMETHOD’s C-Level Indices Business
Trends 2012-2013
Salesforce and the Best-In-Class
Although Salesforce Val...
SIMMETHOD’s Business Trends Across the
Major Indices – 2012 to 2013
15

10

Areas where competitive advantage against the
...
SIMMETHOD Industry and Business Trends
Sales and Marketing contribution to Business Value
2012 to 2013
25

Salesforce Sale...
SIMMETHOD Competitive Intelligence
Sales and Marketing View
25

20

Salesforce underperforms the BestIn-Class in the Sales...
SIMMETHOD™ Industry and Business Trends
HR contribution to Business Value 2012 to 2013
25

Although improved, Salesforce H...
SIMMETHOD Competitive Intelligence
HR View 2013
25

20

Salesforce HR Index is negative and
below Best-In-Class level drag...
SIMMETHOD
Risk and Opportunities Alerts
• The SIMMETHOD algorithms review business
data and stockholders valuation-decisio...
SIMMETHOD
2014 Industry and Business Trends
• SIMMETHOD’s Strategy & Execution
Performance Predictive Indices and trends
a...
SIMMETHOD
Risk and Opportunities Alerts
SIMMETHOD is in the top 1% of most
viewed in Slideshare and has been
“Hot” on Link...
Jorge Oscar Tabacman
jtabacman@gmail.com
Twitter ID: SIMMETHOD
SIMMETHOD
A New Way to Measure and Predict
the Risk and Per...
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Salesforce case study

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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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Salesforce case study

  1. 1. SIMMETHOD A new way to measure and predict your corporate risk and performance Was Salesforce Performance Predictable? 3/3/2014 WWW.SIMMETHOD.COM 1
  2. 2. SIMMETHOD Strategy & Execution Performance Predictive Index On February 28, Seeking Alpha Trefis Notes of the Day published the following observations: • “Steep Net Income Decline Despite Tax Benefit Underlies Salesforce's Lopsided Growth Strategy” 3/3/2014 WWW.SIMMETHOD.COM 2
  3. 3. SIMMETHOD Strategy & Execution Performance Predictive Index • “Margins for the company continued to tread a downward trajectory as operating expense grew even faster than revenue for the third successive year. Salesforce posted an GAAP operating loss of $286 million for FY14, which translates into a staggering -7% operating profit margin”. 3/3/2014 WWW.SIMMETHOD.COM 3
  4. 4. SIMMETHOD Strategy & Execution Performance Predictive Index • “We expect to see continued erosion in margins for Salesforce in the near term, as competition intensifies within the cloud enterprise software industry and Salesforce’s increases its investments to increase its lead over competitors”. 3/3/2014 WWW.SIMMETHOD.COM 4
  5. 5. SIMMETHOD Strategy & Execution Performance Predictive Index • “What’s more worrying is that Salesforce’s loss before tax deductions nearly tripled, increasing from a loss of $128 million in the previous year to $358 million in fiscal 2014”. 3/3/2014 WWW.SIMMETHOD.COM 5
  6. 6. SIMMETHOD • 3/3/2014 Was Salesforce performance predictable based on the SIMMETHOD Strategy and Execution Performance Predictive Indices? WWW.SIMMETHOD.COM 6
  7. 7. SIMMETHOD Risk and Opportunity Alerts 3/3/2014 WWW.SIMMETHOD.COM 7
  8. 8. The Way We Measure Corporate Performance Is Broken Mervyns Circuit City Wachovia Washington Mutual Borders Blockbuster 3/3/2014 Why do Businesses fail? WWW.SIMMETHOD.COM Linen n’ Things 8
  9. 9. The CEO Lament in the Business Analytics Market • We did not see it coming. All my Divisions and Product’s Analytics pointed North while my Business as a whole (in comparison to new competitors and the BestIn-Class in multiple industries) went South. 3/3/2014 WWW.SIMMETHOD.COM 9
  10. 10. Disrupting the Way We Measure Corporate Risk and Performance There are three main problems: • The lack of a single industry-agnostic scale to measure and predict corporate strategy & execution (competitive advantage) leads to erroneous and inconsistent C-level visibility and decision-making 3/3/2014 WWW.SIMMETHOD.COM 10
  11. 11. Disrupting the Way We Measure Corporate Risk and Performance • Silos-analytics and leading indicators that lead to erroneous C-level decisions based on many versions of the truth unintegrated to business strategy and objectives 3/3/2014 WWW.SIMMETHOD.COM 11
  12. 12. Disrupting the Way We Measure Corporate Risk and Performance • C-level risk and performance metrics and ratios based on industrial-era analytics that were not designed to capture intangible values or the dynamic relationships between businesses and their value chains 3/3/2014 WWW.SIMMETHOD.COM 12
  13. 13. Silos Analytics Lead to Many Versions of the Truth and Erroneous Decisions 3/3/2014 WWW.SIMMETHOD.COM 13
  14. 14. Lack of Business and Value-Chain Leading Indicators and Risk Alerts Maximum Risk, Minimum Visibility Company view InwardLooking Analytics 3/3/2014 Value-Chain and Market Leading Indicators and Risk Alerts SIMMETHOD™ industry view indicators & alerts SIMMETHOD™ value-chain view, leading performance indicators & alerts SIMMETHOD™ global market view leading risk/ performance indicators & alerts database Minimum Risk and Maximum Visibility WWW.SIMMETHOD.COM 14
  15. 15. The Leading Indicators and Risk Alerts of the Best-In-Class Why do you need Industry Agnostic Leading indicators and Risk/Opportunities Alerts? • In an interdependent Market (like the Planets in the solar system) your current and future risk and performance are impacted by an ecosystem of constantly changing competitors coming from inside and outside your Industry. 3/3/2014 WWW.SIMMETHOD.COM 15
  16. 16. Your Gap to SIMMETHOD’s Best-In-Class Determines Your Risk and Performance Gap to B-I-C in your industry Your original targets against SIMMETHOD Database Your current position against the B-I-C and competitors Gap to Competitors in a range of industries Gap to B-I-C in a range of industries 3/3/2014 WWW.SIMMETHOD.COM 16
  17. 17. SIMMETHOD’s Disclaimer • The purpose of the SIMMETHOD Strategy/Execution Performance Predictive Index, Reports and Risk/Opportunities Alerts is not to make a Business right or wrong but rather contribute towards the understanding of management actions in comparison to industry peers and the SIMMETHOD Best-InClass. 3/3/2014 WWW.SIMMETHOD.COM 17
  18. 18. SIMMETHOD’s Disclaimer • SIMMETHOD’s Strategy/Execution Performance Predictive indices, metrics and risk/opportunities alerts do not seek to be exact but rather serve as a conduit to ask better questions and seek better answers in the performance improvement, risk minimization and value creation journey. 3/3/2014 WWW.SIMMETHOD.COM 18
  19. 19. SIMMETHOD’s Disclaimer • Sometimes, the value of a metric in itself does not provide the greatest of insights, but valuable actionable knowledge is gained from its ability to provide a trend or a common comparison yardstick with other Businesses across a range of industries. 3/3/2014 WWW.SIMMETHOD.COM 19
  20. 20. SIMMETHOD’s Disclaimer • This report is for informational purpose only and SIMMETHOD shall not be liable for the contents of the report or risk/opportunities alerts or for any damage incurred or alleged to be incurred to any of the Businesses included in the Report as a result of its content 3/3/2014 WWW.SIMMETHOD.COM 20
  21. 21. SIMMETHOD • 3/3/2014 Was Salesforce performance predictable based on the SIMMETHOD Strategy and Execution Performance Predictive Indices? WWW.SIMMETHOD.COM 21
  22. 22. SIMMETHOD’s C-Level Indices Business Trends 2012-2013 Salesforce and the Best-In-Class The following C-Level indices show Salesforce ability to: • Strategize and execute against the SIMMETHOD Best-In-Class • Compete against the Best-In-Class and current and future competitors and are leading indicators of future performance and business risk 3/3/2014 WWW.SIMMETHOD.COM 22
  23. 23. SIMMETHOD’s C-Level Indices Business Trends 2012-2013 Salesforce and the Best-In-Class • 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 3/3/2014 WWW.SIMMETHOD.COM 23
  24. 24. 25 20 15 SIMMETHOD’s C-Level Indices Business Trends 2012-2013 Salesforce and the Best-In-Class Although Salesforce Value Creation Index is pointing North, its Management Controllable Resources and Business Model Indices against the Best-In-Class are pointing South negatively impacting the Performance Predictive Index 10 salesforce 2012 Salesforce 2013 Average 2013 BIC 5 0 -5 -10 SIMMETHOD SIMMETHOD Value SIMMETHOD Management Creation Index Minimum Controllable Company Business Resources index Model index -15 SIMMETHOD Strategy/ Execution Performance Predictive index -20 3/3/2014 WWW.SIMMETHOD.COM 24
  25. 25. SIMMETHOD’s Business Trends Across the Major Indices – 2012 to 2013 15 10 Areas where competitive advantage against the Best-In-Class is being gained or lost salesforce 2012 5 Salesforce 2013 0 -5 -10 -15 -20 3/3/2014 WWW.SIMMETHOD.COM 25
  26. 26. SIMMETHOD Industry and Business Trends Sales and Marketing contribution to Business Value 2012 to 2013 25 Salesforce Sales Index negative score highlights a reduced contribution to business value creation reflected on a below Best-In-Class score for the Strategy/Execution Performance Predictive Index 20 15 10 2012 2013 5 0 -5 Salesforce Strategy /Execution Performance Predictive index B-I-C Strategy /Execution Performance Predictive Index Salesforce Sales Index B-I-C Sales Index -10 3/3/2014 WWW.SIMMETHOD.COM 26
  27. 27. SIMMETHOD Competitive Intelligence Sales and Marketing View 25 20 Salesforce underperforms the BestIn-Class in the Sales and Strategy/Execution Performance Predictive Index SIMMETHOD Sales Index 15 10 SIMMETHOD Strategy /Execution Performance Predictive Index 5 0 Vmware Salesforce Intuit 2013 B-I-C -5 3/3/2014 WWW.SIMMETHOD.COM 27
  28. 28. SIMMETHOD™ Industry and Business Trends HR contribution to Business Value 2012 to 2013 25 Although improved, Salesforce HR Index is negative and was not sufficient to drive its Strategy/Execution Performance Predictive Index above SIMMETHOD’s Best-In-Class 20 15 2012 10 2013 5 0 -5 Salesforce Strategy /Execution Performance Predictive index 3/3/2014 B-I-C Strategy /Execution Performance Predictive Index Salesforce HR Index WWW.SIMMETHOD.COM B-I-C HR Index 28
  29. 29. SIMMETHOD Competitive Intelligence HR View 2013 25 20 Salesforce HR Index is negative and below Best-In-Class level dragging down its Strategy/Execution Performance Predictive Index below the Best-In-Class SIMMETHOD HR Index 15 10 SIMMETHOD Strategy /Execution Performance Predictive Index 5 0 Vmware Salesforce Intuit 2013 B-I-C -5 3/3/2014 WWW.SIMMETHOD.COM 29
  30. 30. SIMMETHOD Risk and Opportunities Alerts • The SIMMETHOD algorithms review business data and stockholders valuation-decisions across business sectors and build industryagnostic 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. 3/3/2014 WWW.SIMMETHOD.COM 30
  31. 31. SIMMETHOD 2014 Industry and Business Trends • SIMMETHOD’s Strategy & Execution Performance Predictive Indices and trends are not deterministic. Businesses that act on their 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. WWW.SIMMETHOD.COM 3/3/2014 31
  32. 32. 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 46 times. 3/3/2014 WWW.SIMMETHOD.COM 32
  33. 33. 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 3/3/2014 WWW.SIMMETHOD.COM 33

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