Google's Case Study on Best-in-Class performance: Google’s strength in the Management Controllable Resources Index shows effective resource management and a strong ability to convert resources into Best-In-Class performance

1. SIMMETHOD™
Industry Reports and Risk Alerts
Technology, HR and Social Media
Google 2013 Case Study
A new way to measure and predict
Corporate Risk and Performance and
fend-off current and future competitors
10/19/2013
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2. SIMMETHOD™
Risk and Opportunity Alerts
10/19/2013
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3. SIMMETHOD’s Case Studies
2013 Industry and Business Trends
SIMMETHOD’s Case Studies
Google 2013 Case Study
(With updates throughout 2013)
10/19/2013
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4. SIMMETHOD™
Risk and Opportunity Alerts Case Studies
Table of content:
• Methodology
• C-Level Industry and Business Trends
• C-Level Business Competitive Intelligence
• HR Contribution to Business Value 2012 to
2013
• Sales and Marketing Contribution to Business
Value 2012 to 2013
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5. SIMMETHOD™
Methodology
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6. The Way We Measure Corporate
Performance Is Broken
Mervyns
Circuit City
Wachovia
Washington
Mutual
Borders
Blockbuster
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Why do
Businesses
fail?
WWW.SIMMETHOD.COM
Linen n’
Things
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7. The CEO’s Lament in the Business
Analytics Market
• We did not see it coming. All my
Divisions’ Analytics pointed
North while my Business as a
whole (in comparison to new
competitors and the Best-InClass in multiple industries) went
South.
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8. The Employee’s Lament in the
Business Analytics Market
• We did not see it coming. All our
HR’s Analytics pointed North
while our Business as a whole (in
comparison to new competitors
and the Best-In-Class across
multiple industries) went South.
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9. Disrupting the Way we Measure
Corporate Risk and Performance
There are three main problems:
1. The lack of a single industry-agnostic scale to
measure and predict Corporate
strategy/execution (competitive advantage)
leads to erroneous and inconsistent C-Level
decision-making
2. Silos-analytics lead to erroneous C-level
decisions based on many versions of the truth
3. Lack of C-Level risk and performance visibility
accentuated by inward-looking industry metrics
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10. Silos Analytics Lead to Many Versions
of the Truth and Erroneous Decisions
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11. Towards a Single Index to Measure
Competitive Advantage
• Comparing the elephant legs or ears against
peers’ legs or ears leads to incorrect
conclusions (This is what traditional
benchmarking does)
• The strategy/execution or competitive
advantage of a Business can only be assessed
holistically and it is not the sum of its parts
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12. Towards a Single Index to Measure
Competitive Advantage
SIMMETHOD’s industry-agnostic algorithm holistically
finds the Best-In-Class Businesses in each Business
Sector and only then calculates a Best-In-Class and a
low performance profile. These Best-In-Class and Low
Performance profiles are used as a GPS to:
• Alert you of your risk and opportunities within and
outside your Business Sector,
• Predict your performance against your peers and the
Best-In-Class across multiple Business Sectors and
• Fend-off current and future competitors coming from
inside and outside your industry.
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13. Towards a Holistic Index of Corporate &
Value-Chain Performance and Risk
• Currently, there is no single
industry-agnostic scale to measure
and predict Business or Value-Chain
strategy/execution (competitive
advantage).
• Conventional Benchmarking
measures silo by silo (ratio by ratio)
and then adds up the sum of the
parts but the problem is that (a star
team is not the same as a team of
stars)
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14. A Star Team (Strategy/Execution) Is
Different Than a Team of Stars
• Unlike conventional analytics
that measures 11 players
independently, SIMMETHOD’s
algorithm finds the Best-InClass teams first and only then
prepares a predictive C-Level
and functional profile of the
Best-In-Class players
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15. Lack of Business and Value-Chain
Leading Indicators and Risk Alerts
Maximum
Risk,
Minimum
Visibility
Company
view
InwardLooking
Analytics
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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
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16. 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.
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17. 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
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18. 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.
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19. 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.
WWW.SIMMETHOD.COM
10/19/2013
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20. 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.
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21. 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 Reports as a result of its
content
WWW.SIMMETHOD.COM
10/19/2013
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22. SIMMETHOD League Table 2013
Business services, Technology, Software, Social Media, HR
Best-In-Class Top 25%
NHN, Visa, Apple, Mastercard, Checkpoint, Baidu,
Infosys, Netease, Google, Yahoo, Cognizant, Priceline,
Tata, Cielo, Intuit, AOL, Paychex, Wipro, VMware
Best-In-Class Top 50%
Aggreko, Accenture, Experian, Dassault, HCL,
Moody’s, Oracle, Citrix, LinkedIn, Microsoft,
Amadeus, SAP, H&R Block, DKSH, IBM, Salesforce,
Amazon, Ebay, Teradata
10/19/2013
www.simmethod.com
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23. SIMMETHOD League Table 2013
Business services, Technology, Software, Social Media, HR
Mid Range Score
Adobe, Brambles, Thomas Cook, Verisk Analytics, EMC,
Automatic Data, Facebook, Honeywell, Randstad,
Compal, HP, Western Union, Quanta, Alliance, United
Technology, Innolux
Low Range Score
CA, Fiserv, Sodexco, Tui, Netapp, Manpower, Dell,
Computer Science, Fidelity National, Adecco,
Symantec, Capgemini, Atos, Expedia, American
Express
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24. SIMMETHOD™
Industry and Business Trends
C-Level View
• Are you mistaking any positive growth
for real competitive advantage?
• Your rate of improvement against the
SIMMETHOD Best-In-Class determines
your future risk and performance
10/19/2013
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25. SIMMETHOD’s Case Studies: Business Trends
Across the Major C-Level Indices – 2012 to 2013
In the following Case Study, the gaps
between the 2012 and the 2013 graphs
show the areas of the Business where
competitive advantage is being gained
or lost in relation to peers and the
SIMMETHOD Best-In-Class
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26. SIMMETHOD’s C-Level Indices Business Trends
2012-2013
Google and the Best-In-Class
40
35
30
Google is outperforming the Best-In-Class on
every C-Level Index
25
20
Google
2012
Google
2013
15
10
5
0
SIMMETHOD
SIMMETHOD Value
SIMMETHOD
SIMMETHOD
Management
Creation Index Minimum Company Strategy/ Execution
Controllable
Business Model
Performance
Resources index
index
Predictive index
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Average
2013 BestIn-Class
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27. SIMMETHOD’s Business Trends Across the
Major Indices – 2012 to 2013
40
35
30
25
20
Areas where competitive
advantage against peers and
the Best-In-Class are being
gained or lost
Google
2012
15
10
Google
2013
5
0
-5
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28. SIMMETHOD’s Case Studies
Competitive Intelligence
C-Level View
SIMMETHOD’s Case Studies:
Business Competitive
Intelligence
10/19/2013
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29. SIMMETHOD Competitive Intelligence
In a market where industry-barriers
have collapsed and new competitors
can come from any industry, how do
you measure and predict your
future risk and performance and
fend-off current and future
competitors?
10/19/2013
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30. SIMMETHOD Competitive Intelligence
SIMMETHOD’s Strategy/Execution Performance
Predictive Indices:
• Rate your management’s ability to strategize
and execute against your peers and the BestIn-Class in multiple industries,
• Show the strengths and weaknesses of your
Business in relation to your peers, current
and potential future competitors and
• Are a predictive indication of future
threats/opportunities from within and
outside your industry.
10/19/2013
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31. SIMMETHOD Competitive Intelligence
• In a constantly fluctuating Market and unlike
static ratios that do not capture the dynamic
relationships between Businesses and Value
Chains, SIMMETHOD™ industry-agnostic
composite indices measure the interactive
relationships (competitive advantage)
between Businesses and Value Chains across
every Business Sector and provide early
warning alerts of future threats and
opportunities.
10/19/2013
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32. SIMMETHOD Competitive Intelligence
2013
50
The SIMMETHOD algorithm and industry
agnostic indices rate your management
decisions and competitive advantage in
relation to your peers and the Best-In-Class
40
SIMMETHOD
Management
Controllable
Resources index
SIMMETHOD Value
Creation Index
30
20
SIMMETHOD
Minimum Company
Business Model index
10
0
Apple
Google
Microsoft
Amazon
Average 2013
Best-In-Class
SIMMETHOD
Strategy/ Execution
Performance
Predictive index
-10
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33. SIMMETHOD Competitive Intelligence
2013
50
40
30
20
10
Google’s strength in the
Management Controllable
Resources Index shows effective
resource management and a
strong ability to convert
resources into Best-In-Class
performance
Apple
Google
0
Microsoft
-10
Amazon
10/19/2013
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34. SIMMETHOD™
Industry and Business Trends
SIMMETHOD Case Studies
Industry and Business Trends
HR Contribution to Business Value
in Relation to your Peers and the
Best-In-Class
10/19/2013
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35. SIMMETHOD™ Industry and Business Trends
HR contribution to Business Value 2012 to 2013
40
Although HR contribution to Business Value has
decreased at a faster rate than the Best-In-Class,
Google’s indices are above Best-In-Class average
showing continued strength
35
30
25
2012
20
15
10
2013
5
0
Google Strategy
/Execution
Performance
Predictive index
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B-I-C Strategy
/Execution
Performance
predictive Index
Google HR Index
WWW.SIMMETHOD.COM
B-I-C HR Index
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36. SIMMETHOD Competitive Intelligence
HR View 2013
Google Case Study:
Competitive Intelligence
(With Updates Throughout 2013)
10/19/2013
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37. SIMMETHOD Competitive Intelligence
HR View 2013
45
40
35
Google’s above B-I-C HR Index is a
strong contributor to Google’s above
B-I-C Strategy/Execution
Performance Predictive Index
SIMMETHOD
HR Index
30
25
20
SIMMETHOD
Strategy
/Execution
Performance
Predictive Index
15
10
5
0
Google
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Amazon
Apple
WWW.SIMMETHOD.COM
2013 B-I-C
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38. SIMMETHOD™
Industry and Business Trends
SIMMETHOD Case Studies:
Industry and Business Trends
Sales and Marketing Contribution
to Business Value in Relation to
your Peers and the Best-In-Class
10/19/2013
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39. SIMMETHOD™ Industry and Business Trends
Sales and Marketing contribution to Business Value
2012 to 2013
40
Google’s decrease in Sales and Strategy/Execution
Performance Predictive indices are in line with the
Best-In-Class and their scores are well above B-I-C
average
35
30
25
2012
20
15
10
2013
5
0
Google Strategy B-I-C Strategy
/Execution
/Execution
Performance
Performance
Predictive index predictive Index
10/19/2013
Google Sales
Index
WWW.SIMMETHOD.COM
B-I-C Sales Index
39

40. SIMMETHOD Competitive Intelligence
Sales and Marketing View
2013
Google Case Study
Competitive Intelligence
(With Updates Throughout 2013)
10/19/2013
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41. SIMMETHOD Competitive Intelligence
Sales and Marketing View
45
40
35
The 3 companies outperform the B-I-C
Sales Index average but their sales
create totally different Business value
and competitive advantage
SIMMETHOD Sales
Index
30
25
20
SIMMETHOD
Strategy
/Execution
Performance
Predictive Index
15
10
5
0
Google
10/19/2013
Amazon
Apple
WWW.SIMMETHOD.COM
2013 B-I-C
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42. SIMMETHOD™
Risk and Opportunities Alerts
• The SIMMETHOD algorithm reviews 1000’s of
Businesses and stockholders decisions across
Business Sectors and builds Industry-Agnostic
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.
10/19/2013
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43. SIMMETHOD™
Risk and Opportunities Alerts
The SIMMETHOD algorithm selects the Best-In-Class
performers in Technology, Software, Social Media, HR and
Business Services and produces Risk/Opportunities Alerts
geared to
• C-Level,
• HR,
• Finance,
• Sales and Marketing Executives and
• Investors
showing trends, risk and Best-In-Class profiles and
competitive intelligence in graphical and metrics form and
risk/opportunities alerts throughout 2013.
10/19/2013
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44. SIMMETHOD™
Risk and Opportunities Alerts
• SIMMETHOD receives over
100,000 Business readers per
year and has been Hot on
LinkedIn, Twitter and
Facebook 40 times.
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45. Best-In-Class Profiles and
Risk/Opportunity C-Suite Alerts
• “SIMMETHOD added real dollars to our bottom
line”. Edmund Khalaf, CFO and VP, APAC
Randstad.
• “SIMMETHOD is a brilliant way to assess
performance without politics, opinions and
interpretations ‘about how are we doing' - This a
truly powerful methodology that is needed in
the marketplace”. Stephen Maloney, Business
Intelligence Sales Manager, Oracle.
10/19/2013
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46. 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
10/19/2013
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