Simmethod and Barron's 500 correlations

3,622 views

Published on

Is there a correlation between the SIMMETHOD Best In Class Index and The Barron’s 500?

Published in: Business, Technology
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
3,622
On SlideShare
0
From Embeds
0
Number of Embeds
266
Actions
Shares
0
Downloads
0
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Simmethod and Barron's 500 correlations

  1. 1. SIMMETHOD Connecting your Strategy & Execution to Best In Class Performance and Risk Alerts Is there a correlation between the SIMMETHOD Best In Class Index and The Barron’s 500? 6/19/2014 1 WWW.SIMMETHOD.BLOGSPOT.COM
  2. 2. SIMMETHOD and The Barron’s 500 • Is there a correlation between the 2014 SIMMETHOD Strategy & Execution Best In Class and the Barron’s 500 list? 6/19/2014 2 WWW.SIMMETHOD.BLOGSPOT.COM
  3. 3. The Barron’s 500 Based on: • The 500 largest public companies in the U.S. and Canada measured by sales with a $5 Billion cut off and covering every business sector. 6/19/2014 WWW.SIMMETHOD.BLOGSPOT.COM 3
  4. 4. Barron’s 500 Ranking Algorithm “Barron’s seeks to identify companies that have done the best job of investing for growth and compares them on the basis of three equally weighted metrics”: 6/19/2014 WWW.SIMMETHOD.BLOGSPOT.COM 4
  5. 5. Barron’s 500 Ranking Algorithm • “Median three-year cash-flow-based ROI, • One-year change in that measure relative to the three-year median and • Adjusted sales growth in the last fiscal year” 6/19/2014 WWW.SIMMETHOD.BLOGSPOT.COM 5
  6. 6. SIMMETHOD Strategy & Execution Performance Predictive Index 6/19/2014 WWW.SIMMETHOD.BLOGSPOT.COM 6 How to measure Strategy & Execution?
  7. 7. The SIMMETHOD Algorithm SIMMETHOD Strategy & Execution Performance Predictive Index Stockholders valuation and management’s rating C-level strategy & execution metrics and risk alerts Business model profitability Management’s ability to strategize & execute against the Best In Class Competitors’ strategy & execution rating 6/19/2014 7WWW.SIMMETHOD.BLOGSPOT.COM
  8. 8. SIMMETHOD Ranking Algorithm The purpose of the SIMMETHOD C-Level performance predictive indices is to identify and provide unique: • Best In Class C-Level strategy & execution metrics and profiles • C-Level leading indicators and • Risk and opportunity alerts not currently available to the C-Suite 6/19/2014 WWW.SIMMETHOD.BLOGSPOT.COM 8
  9. 9. SIMMETHOD Strategy & Execution 2014 Best in Class Index Based on: • Global companies in Technology, Human Resources, Social Media, Services, Media and Telecommunication representing a wide spectrum of strategies, business models, processes and quality of management decision-making. 6/19/2014 WWW.SIMMETHOD.BLOGSPOT.COM 9
  10. 10. SIMMETHOD Ranking Algorithm SIMMETHOD, based on the 7 Laws of Growth, Best Practices and Value Creation provides a holistic view of each company based on their: • Strategy and execution, • Quality of decision-making, • Business model profitability • Ability to extract value from their assets • Human capital and overhead management and • Sales and marketing effectiveness and ability to create business value. 6/19/2014 WWW.SIMMETHOD.BLOGSPOT.COM 10
  11. 11. The SIMMETHOD Algorithm and the 7 Laws of Growth and Value Creation SIMMETHOD 7 Laws Integration /alignment Benchmarking inside/outside your industry Growth & value creation Resource contribution to objectives Predictive performance & risk Averages & positive trends Minimum company /business model 6/19/2014 WWW.SIMMETHOD.BLOGSPOT.COM 11
  12. 12. Is There A Correlation Between The SIMMETHOD Index And The Barron’s 500? -100 0 100 200 300 400 500 In the Barron's 500 ranking, the lower the score the better. In the SIMMETHOD ranking, the higher the score the better (In both, Visa is the Best In Class) 2014 position in the Barron's 500 SIMMETHOD 2014 Strategy & Execution Performance Predictive Index 6/19/2014 12 WWW.SIMMETHOD.BLOGSPOT.COM
  13. 13. Is There A Correlation Between The SIMMETHOD Index And The Barron’s 500? 6/19/2014 13 WWW.SIMMETHOD.BLOGSPOT.COM -100 0 100 200 300 400 500 0 5 10 15 20 25 30 PositionintheBarron's500(Best=1) SIMMETHOD Strategy & Execution Performance Predictive Index from positive (left) to negative score (right) 2014 position in the Barron's 500 SIMMETHOD 2014 Strategy & Execution Performance Predictive Index Linear (2014 position in the Barron's 500) Linear (SIMMETHOD 2014 Strategy & Execution Performance Predictive Index) Barron's 500/ SIMMETHOD Best In Class Barron’s 500/ SIMMETHOD laggards
  14. 14. 2013 To 2014 Performance Trend • How do The Barron’s 500 (2013 to 2014) trends compare to the SIMMETHOD Strategy & Execution Performance Predictive Index trends? 6/19/2014 WWW.SIMMETHOD.BLOGSPOT.COM 14
  15. 15. Barron’s 500 2013 to 2014 Trend (The lower the score the better) 6/19/2014 WWW.SIMMETHOD.BLOGSPOT.COM 15 0 50 100 150 200 250 300 350 400 450 500 Barron's 500 2013 Barron's 500 2014 Improved from 2013 to 2014 Got worse from 2013 to 2014
  16. 16. Barron’s 500 2013 to 2014 Trend (The lower the score the better) 6/19/2014 WWW.SIMMETHOD.BLOGSPOT.COM 16 0 50 100 150 200 250 300 350 400 450 500 Barron's 500 2013 Barron's 500 2014 Improved from 2013 to 2014 Got worse from 2013 to 2014
  17. 17. SIMMETHOD’s 2013 to 2014 Trend (The higher the score the better) 6/19/2014 WWW.SIMMETHOD.BLOGSPOT.COM 17 -60 -40 -20 0 20 40 60 80 SIMMETHOD 2013 Strategy & Execution Performance Predictive Index SIMMETHOD 2014 Strategy & Execution Performance Predictive Index Improved between 2013 and 2014
  18. 18. SIMMETHOD’s 2013 to 2014 Trend (The higher the score the better) 6/19/2014 WWW.SIMMETHOD.BLOGSPOT.COM 18 -60 -40 -20 0 20 40 60 80 SIMMETHOD 2013 Strategy & Execution Performance Predictive Index SIMMETHOD 2014 Strategy & Execution Performance Predictive Index
  19. 19. 2013 To 2014 Performance Trend Name Barron’s 500 SIMMETHOD Strategy & Execution Performance Predictive Index Visa ↑ ↑ MasterCard ↑ ↑ Amex ↑ ↑ Accenture ↑ ↓ Time Warner ↑ N/A Oracle ↑ ↑ United Technology ↑ ↓ Cisco ↑ N/A Automatic Data Processing ↓ ↑ 6/19/2014 WWW.SIMMETHOD.BLOGSPOT.COM 19
  20. 20. 2013 To 2014 Performance Trend Name Barron’s 500 SIMMETHOD Strategy & Execution Performance Predictive Index eBay ↑ ↑ Cognizant ↓ ↑ IBM ↓ ↓ Fidelity National Information ↓ ↓ Amazon ↑ ↓ Google ↑ ↑ Priceline ↑ ↑ Facebook ↓ ↑ Microsoft ↑ ↑ 6/19/2014 WWW.SIMMETHOD.BLOGSPOT.COM 20
  21. 21. 2013 To 2014 Performance Trend Name Barron’s 500 SIMMETHOD Strategy & Execution Performance Predictive Index Apple ↓ ↑ Liberty Interactive ↓ N/A Direct TV ↓ N/A Symantec ↓ ↑ Manpower ↑ ↑ CSC ↑ ↓ HP ↓ ↓ AT&T ↑ N/A CenturyLink ↓ N/A 6/19/2014 WWW.SIMMETHOD.BLOGSPOT.COM 21
  22. 22. SIMMETHOD and The Barron’s 500 There are two main reasons why The Barron’s 500 and the SIMMETHOD Index arrive to two different results such as in the American Express example: • SIMMETHOD is a holistic risk & performance index covering a larger number of financial and operational metrics relative to the B-I-C. • The global nature of the SIMMETHOD data and indices. 6/19/2014 WWW.SIMMETHOD.BLOGSPOT.COM 22
  23. 23. SIMMETHOD’s American Express Case Study The following C-Level indices show American Express’ ability to: • Strategize and execute against the SIMMETHOD Best-In-Class, • Compete against the Best-In-Class, current and future competitors, and are leading indicators of future business opportunities, risk and performance. 6/19/2014 23WWW.SIMMETHOD.BLOGSPOT.COM
  24. 24. SIMMETHOD’S American Express Case Study 6/19/2014 WWW.SIMMETHOD.BLOGSPOT.COM 24 -60 -40 -20 0 20 40 60 80 American Express Mastercard Visa SIMMETHOD Avg. B-I-C SIMMETHOD Management Controllable Resources Index SIMMETHOD Strategy & Execution Performance Predictive Index SIMMETHOD Minimum Company Business Model Index
  25. 25. SIMMETHOD’s American Express Case Study 6/19/2014 WWW.SIMMETHOD.BLOGSPOT.COM 25 -15 -10 -5 0 5 10 15 20 SIMMETHOD Sales Index SIMMETHOD Asset Index SIMMETHOD Overhead Index SIMMETHOD HR Index SIMMETHOD Cash/ Debt Index American Express Mastercard Visa SIMMETHOD Avg. B-I-C
  26. 26. SIMMETHOD’s American Express Case Study 6/19/2014 WWW.SIMMETHOD.BLOGSPOT.COM 26 -15 -10 -5 0 5 10 15 20 SIMMETHOD Sales Index SIMMETHOD Asset Index SIMMETHOD Overhead Index SIMMETHOD HR Index SIMMETHOD Cash/ Debt Index American Express Mastercard Visa SIMMETHOD Avg. B-I-C Competitive advantage gap
  27. 27. SIMMETHOD’s Disclaimer • The purpose of the SIMMETHOD Strategy/Execution Performance Predictive Index and C-Level 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’s peers and the SIMMETHOD Best In Class. 6/19/2014 WWW.SIMMETHOD.BLOGSPOT.COM 27
  28. 28. SIMMETHOD’s Disclaimer • SIMMETHOD’s Strategy & Execution Performance Predictive Index and C-Level Risk and 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. 6/19/2014 WWW.SIMMETHOD.BLOGSPOT.COM 28
  29. 29. 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. 6/19/2014 WWW.SIMMETHOD.BLOGSPOT.COM 29
  30. 30. SIMMETHOD’s Disclaimer • This Presentation is for informational purpose only and SIMMETHOD shall not be liable for the contents of the Presentation or for any damage incurred or alleged to be incurred to any of the businesses included in the Presentation as a result of its content. 6/19/2014 WWW.SIMMETHOD.BLOGSPOT.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 SIMMETHOD leading indicators and risk alerts can improve their 2014 performance to Best In Class levels. 6/19/2014 WWW.SIMMETHOD.BLOGSPOT.COM 31
  32. 32. SIMMETHOD Risk and Opportunities Alerts SIMMETHOD is in the top 1% of most viewed on Slideshare and has been “Hot” on LinkedIn, Twitter and Facebook 50 times. 6/19/2014 WWW.SIMMETHOD.BLOGSPOT.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 6/19/2014 33WWW.SIMMETHOD.BLOGSPOT.COM

×