Performance Predictability/Predictive Growth Modeling

Copyright - 2016- Eric G.

Woods - Do not duplicate

PPM/PGM

• PPM/PGM – Performance Predictability Model (PPM) is used for pre acquisition valuation to determine

the likelihood of continued, accelerated, or declining performance after the acquisition utilizing non-financial leading indicators

– Predictive Growth Model (PGM) is used to identify key elements that are restricting short or long term revenue and growth within an existing company, division, or product set.

• Consists of 3 primary elements – Health Rating Image – a visual identifier of strengths and weaknesses – Significance Tornado – adjusts HRI into specific priorities – PPM/PGM Report – detailed report of findings and recommendations

• Health Rating Image – 6 main categories or “Index Groupings” (IG) – 24 scaled subcategories “Vertical Index Line” (VIL) – Concentric circles represent “Risk Measurement Level” (RML) – PPM only

• Significance Tornado – Adjusts VIL measurements to identify specific significance to performance/growth goals – Removes outliers from VIS measurements – Utilizes IG co-efficient variables to adjust for industry accuracy

20 point Vertical Index Scale (VIS) on 24 Vertical Index Lines (VIL) within 6 Index

Groupings (IG)

• Vision – Executive Leadership/ Vision – Team Understanding/acceptance – Aligned with client need – Future Industry Aligned Vision

• Product – Quality – Diversity – Availability – Key product knowledge

• Marketing/Database – Strategy/Market Segmentation – Database Quality – Marketing/Sales Integration – Delivery Effectiveness

• Sales – Leadership Rating – Database/Customer Access/Management – Sales Efficiency – Tool Usage/Forecasting Ability

• Execution – On time delivery – Order Accuracy/Initial Installation – Punch/Installation Follow-up – Partner participation/Brand Visibility

• Association Partners – Association Knowledge – Member Participation – Marketing Opportunities/Database Access – Endorsements

Data collection for VIS rating

established through, interviews,

questionnaires, database

review, online research,

costumer surveys in each Index

Grouping (IL)

Building the PPM/PGM

Understanding the HRI

Visio

n

Partners

hips Produ

ct

Execut

ion

Market

ing/Dat

abase

Vertical Index

Lines (24) –

each line has

a VIS of 20 Index

Grouping

(IG) – Total

of 6

Risk Measurement Level (high, medium, low)

Turning Data in to an Image

Once collected, data is valued and plotted to create the Health Rating

Image

Copyright - 2012 - Eric G.

Woods - Do not duplicate

Vision

Partnerships

Product

Execution

Sales

Marketing

/Database

Health Rating Image

Turning the HRI into Action

Running the HRI through the PPM/PGM Algorithm

Significance Tornado

Each element on the Significance Tornado will have a numeric

value and “tail”. The value determines the rating, the tail

determines the confidence factor. Ex: Association Memberships

– V=156 with a Tail of 2.5 (Tails are represented in red).

-20 0 20 40 60 80 100 120 140 160 180

Marketing Deliverables

Marketing Database

Order Accuracy

Sales Tools

Sales Leadership

Product Knowledge

Partner Confidence

Product availability

On time Delivery

Marketing Strategy

Product Diversity

Post Installation

Sales Effeciency

Shared Marketing

Member Participation

Association Engagements

Assoc Membership

Tornado Tail

Final Report

All the data collected is published in a final report identifying methodologies, results,

recommendations, and calculations and data findings

Report

Report includes:

• Summary data in HRI, full rating report, Significance Tornado, individual VIL information

• PowerPoint presentation with findings and recommendations

• Identification and explanations of findings and primary concerns

• Strategies, actions, tactics, ownership, and measurements to address and fix low marks

• Overall Health Score (PPM only)

Sales Efficiency

Sales Database

Marketing

Database

Marketing Strategy

Association Participation

Association Branding

Forecasting

Vision

Copyright – Eric G Woods - 2016

The PPM/PGM Report