NEW DECISION SCIENCE FOR THE C-SUITE

Strategic decision-making is tough in today’s executive suite…

Pinpointing whether to cut costs or invest to drive sustainable bottom-line results and impact growth remains elusive. Contemporary financial reports (income statements, balance sheet, and historical data) don’t take the human element into consideration. More C-Suite executives believe understanding this is critical to better strategic decision-making. Failed M & As, lost market share, and decreased shareholder value are reflections of this lack of understanding of the human impact on financial outcomes.

Next Gen pa™ Corporate Performance Analytics is the new decision science for the executive suite—a business MRI. Based upon many years of research in to this area, we believe that Corporate Performance Analytics is the “something missing in classical financial decision-making tools. What you can’t glean from an income statement and balance sheet is what you can observe and understand with Performance Analytics.

What Makes Next Gen pa™ Unique?

Next Gen pa™: A system of quantifying and linking human impact to financial outcomes, the analysis of which provides opportunities for improvement, identifies leading indicators of performance, and measures results in applying solutions that link to and improve those outcomes.

SBL Co selected metrics are linked to financial results in four Key Performance Indicators (KPIs), described in-depth in the Executive Summary. It is our consistent application of data definitions and metric formulas that provide believable and “benchmarkable” executive performance reports. The logic behind understanding and applying analytics is based heavily on outcomes and results of investments and decisions, not just cost focus.

What Is The Corporate Horsepower Index?

The CHpI is the primary Key Performance Indicator executives have been looking for to pinpoint the impact human activity has on financial outcomes, and it is based solely on hard financial data obtained from the G/L. The corporate Horsepower Index can display how well your company is performing relative to internal business units or industry competitors. See examples in the Case Study.

The goal of today’s executive suite is to better understand, value, predict and manage business performance. Next Gen pa™ provides such a vehicle.

What Are Some Performance Analytics Capabilities?

• Provides executives new insightful views of corporate financial performance
• SBL Co analysis of your results with rationale proves the direction for actionable items
• Provides decision-makers the ability to demonstrate the need for budget and/or resources based on hard data, not opinion.
• Enables modeling and ROI calculation of investment for improvements.
• Determines if staff re-alignment/allocation is warranted, and if so determine the optimal size the company should have per revenue projections and performance targets

Why Use Performance Analytics?

• It is the diagnostician capable of analyzing the human impact on the bottom line
• Enables comparative analysis of diverse companies and units—including disparate size comparisons
• When used with current financial reports, greatly expands the scope and insights
• Fulfills the need by the executive suite to better understand cause and effect metric linkages

The challenges facing executives today are huge, especially in a global economy. While there is no “one answer” or “one solution” to face all of the challenges, we believe we have one solution that goes a long way to helping executives address these challenges. Next Gen pa™ is to be used along with the corporate income statement, balance sheet and historical data. Doing so changes everything …

Contact SBL Co for more information on Next Gen pa™ Corporate Performance Analytics for your organization.

Introduction to Corporate Performance Analytics - pdf file (presentation)
Executive Summary – pdf file
Case Study – pdf file

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