Simmethod how good do you have to be, the gap to the best in-class

SIMMETHOD™
How good do you have to be to
outsmart your current and future
competitors?
SIMMETHOD™ Strategy/Execution Index,
Competitive Intelligence Success Metrics Database
and Alerts predict the performance of your business
and alert you of new threats and opportunities in
relation to your current and future competitors
WWW.SIMMETHOD.COM

WWW.SIMMETHOD.COM
7/7/2012 1

How good do you have to be to outsmart your
current and future competitors?

How large is the gap between the
low-performance businesses
and the Best-In-Class in the
2012 SIMMETHOD™ Competitive
Intelligence Analytics Database?

7/7/2012 WWW.SIMMETHOD.COM 2

How good do you have to be to outsmart your current
and future competitors?
SIMMETHOD™ Strategy/Execution Performance Predictive
Indices, Competitive Intelligence Database & Alerts
Performance driven by
Value chain The 7 Laws of external circumstances
leading Best Practices, beyond management
indicators Growth and control Does not comply
with the 7 Laws of
Value Creation
Best Practices/
Growth & Value
Social Media CEO pay not aligned
as a value/ The 7 Outdated
to performance
profit driver Insights Business
Model

CEO pay Performance Intangible assets &
aligned to driven by internal Social Media are not Lack of visibility
performance decision-making leveraged as value maximizes risk
creators

SIMMETHOD™ Performance Predictive
Indices score & link your strategy,
management decisions and execution to
the overall performance of your business
in relation to your current and future
BEST-IN- competitors reflecting your, strengths, LOW PERFORMANCE
CLASS weaknesses, risks and opportunities


SIMMETHOD™
Algorithm, Strategy/Execution Performance Predictive
Indices, Competitive Intelligence Database and Alerts

• The businesses in the SIMMETHOD™ Best-In-
Class group of 2012 (case study) share a high
score in the Strategy/Execution Performance
Predictive Index and a high degree of
compliance with the SIMMETHOD™ 7 Laws of
Best Practices, Growth and Value Creation.


SIMMETHOD™ 2012
Algorithm, Strategy/Execution Performance Predictive
Indices, Competitive Intelligence Database and Alerts

The Strategy/Execution Performance Predictive
Indices:
• Rate management’s ability to strategize and
execute against its peers,
• Show the strengths and weaknesses of each
company in relation to its peers, current and
potential future competitors and
• Are a predictive indication of future threats and
opportunities from within and outside your
industry.


SIMMETHOD™ 2012 Global Strategy/Execution
Performance Predictive Index, Competitive
Intelligence Database & Threats/Opportunities Alerts

Best-In-Class Performance
Apple, Cielo, Priceline, Checkpoint, Google, Terradata,
Infosys, SAP, Microsoft, Aggreko, Oracle, Ebay, Tata,
Vmware, Paychex, Moody’s

Low Performance
Apollo, Bunzl, Capita Group, Adecco, Liberty, Misys, Fiserv,
Symantec, Fidelity, HP, Manpower, Sodexo, Randstad,
Capgemini


How good do you have to be?
Gap between the low-performance businesses and
the 2012 SIMMETHOD™ Best-In-Class

Average Market
Value above
Assets = $65B

Average Market
Value Below
Assets = -$7.5B


Gap in
average
market
value = 9.5X



Gap in average
profit margins
= 4X



Gap in average
profit/
employee =
15X


Gap between the low-performance businesses
and the 2012 SIMMETHOD™ Best-In-Class

Gap in average
sales/
employee = 2X



Gap in average
market value/
employee =
14.7X



• In the following slides, in order to
normalize the data, the definition of
Best-In-Class have been extended to
include the Upper-Mid-Range
Performance Businesses and the Low
performance to include the Lower-Mid-
Range Performance businesses.



Best-In-Class Performance
Apple, Cielo, Priceline, Checkpoint, Google, Terradata,
Infosys, SAP, Microsoft, Aggreko, Oracle, Ebay, Tata,
Vmware, Paychex, Moody’s

Upper mid-range Performance
Citrix, BMC, Intuit, Cognizant, Amadeus, Wipro, Yahoo,
Dassault, Amazon, World Fuel Services, Autodesk,
Salesforce, Groupon, LinkedIn, IBM



Lower-Mid-Range Performance
Accenture, Alliance, CSC, Adobe, Robert Half, SGS, CA,
Brambles, Gartner, ADP, Experian, Dell, Forrester, CGI,
Thomas Cook

Low Performance
Apollo, Bunzl, Capita Group, Adecco, Liberty, Misys, Fiserv,
Symantec, Fidelity, HP, Manpower, Sodexo, Randstad,
Capgemini


Average Market
Value Above
Assets = $43B

Average Market
Value Below
Assets = -$3B


Gap in Average
Market Value =
5.5X



Gap in average
profit margins
= 2.5X



Gap in average
profit/
employee = 6X



Gap in average
sales/
employee =
3.5X



Gap in average
market value
/employee = 6.5X



• Is There a Relationship Between
CEO Pay and SIMMETHOD™ 2012
Best-In-Class Performance and
Value Creation?



Gap in Average
Market Value
/CEO Pay = 5.5X



Gap in Average
Profit/CEO Pay =
3.5X



Gap in Average
Sales/CEO Pay =
1X


CEO Pay as a Market Value and Profit driver for the B-I-C
6

5

4

3 CEO Pay as a Market
Value and Profit driver
2 for the B-I-C
1

0
Gap avg. market Gap avg. Gap avg.
value/CEO pay profit/CEO pay sales/CEO pay



• Is there a relationship between Social media
followers on Facebook, Twitter and LinkedIn
and 2012 SIMMETHOD™ Best-In-Class
performance and value creation?
• Are Social Media followers likely to become
predictors of future performance?
• What is the value of a Social Media follower?



Gap in Average
Profit/Facebook
follower = 8.5X



Gap in Average
Profit/Twitter
Follower = 1X



Gap in Average
Profit/LinkedIn
Follower = 1X



Gap in Average
Market Value/
Facebook
Follower = 8X



Gap in Average
Market Value/
Twitter Follower
= 2.3X



Gap in Average
Market Value/
LinkedIn
Follower = 1.2X


Followers as drivers of profit for the B-I-C
9
8
7
6
5
4
Followers as drivers of
3 profit for the B-I-C
2
1
0
B-I-C Gap in avg. B-I-C Gap in avg. B-I-C Gap in avg.
profit/Facebook profit/Twitter profit/LinkedIn
follower follower follower


Followers as drivers of Market Value for the B-I-C
9
8
7
6
5
4
3 Followers as drivers of
2 Market Value for the B-I-C
1
0
Gap in avg. Gap in avg. Gap in avg.
Market Market Market
Value/Facebook Value/Twitter Value/LinkedIn
follower follower follower


Value gap between a Facebook, Twitter &
LinkedIn follower for the 2012 SIMMETHOD™
Best-In-Class
• Is there a relationship between Social Media
Followers and SIMMETHOD™ Best-In-Class
performance and value creation?
• Are all Social Media followers equally
valuable as drivers of performance and value
creation?


Value gap between a Facebook, Twitter & LinkedIn
follower for the 2012 SIMMETHOD™ Best-In-Class

Gap in Average Market
Value between a Facebook
and a Twitter Follower for
the SIMMETHOD™B-I-C =
1.5X



Gap in Average Market
Value between a Facebook
and a LinkedIn Follower for
the SIMMETHOD™B-I-C =
3X



Gap in Average Profit
between a Facebook
Follower and a Twitter
Follower for the
SIMMETHOD™ B-I-C = 1.7X



Gap in Average Profit
between a Facebook
Follower and a LinkedIn
Follower for the
SIMMETHOD™ B-I-C = 4X


As a driver of Market Value for the B-I-C
3.5

3

2.5

2
As a driver of Market
1.5 Value for the B-I-C
1

0.5

0
Facebook follower Twitter follower LinkedIn follower


As a driver of Profit for the B-I-C
4.5
4
3.5
3
2.5
2 As a driver of Profit for the
1.5 B-I-C
1
0.5
0
Facebook Twitter follower LinkedIn
follower follower


SIMMETHOD™ Strategy/Execution Performance Predictive
Indices, Competitive Intelligence Metrics Database and Alerts

• SIMMETHOD™ is a relative scale that measures
business risk and performance and rates
management's ability to strategize and execute
against a constantly changing set of business,
industry and market performance metrics. It is
like a sport league table constantly searching for
the top teams in each industry in order to find
their Best-In-Class strategy, execution, business
models, HR practices, contribution of resources
to the bottom line, metrics and processes.


Jorge Oscar Tabacman
jtabacman@gmail.com
www.simmethod.com
The power of the SIMMETHOD™ performance predictive
algorithms, indices, competitive intelligence database and
leading indicators lies in their ability to provide in simple terms
a window into a company business model and management
effectiveness and their ability to predict future trends, risk,
performance and competitive advantage within an extended
value chain.


Simmethod how good do you have to be, the gap to the best in-class

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Simmethod how good do you have to be, the gap to the best in-class