The document describes SIMMETHOD, a new method for measuring and predicting corporate risk and performance based on human capital. It discusses how current measures of corporate performance are flawed and provides examples of companies that have failed. SIMMETHOD uses predictive questions and indices related to human capital, strategy execution, and value creation to evaluate companies and identify risks, opportunities, and gaps to best-in-class performance. Case studies are presented analyzing changes in human capital contributions and predictive indices for various companies from 2012 to 2013.
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
Unlocking the 2014 value of your human capital
1. SIMMETHOD
A new way to measure and predict
your corporate risk and
performance
What your human capital reveals about
your strategy and execution as
predictors of your future performance
2/15/2014
WWW.SIMMETHOD.COM
1
2. The Way We Measure Corporate
Performance Is Broken
Mervyns
Circuit City
Wachovia
Washington
Mutual
Borders
Blockbuster
2/15/2014
Why do
Businesses
fail?
WWW.SIMMETHOD.COM
Linen n’
Things
2
4. Unlocking the value of your Human
Capital to become 2014 Best-In-Class
Your Human Capital contribution
to Best-In-Class performance and
risk reduction in Technology,
Software, Social Media, Human
Resources and Business Services
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WWW.SIMMETHOD.COM
4
5. Key Predictive Questions
• Is your Human Capital predictive of
your future risk and performance?
• How much value is your human
capital adding to your customers,
your business and your valuechain?
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WWW.SIMMETHOD.COM
5
6. Key Predictive Questions
• Is your human capital aligned to
business value creation?
• How much value is your human
capital adding to your business
in comparison to your peers, the
Best-In-Class and current and
future competitors?
2/15/2014
WWW.SIMMETHOD.COM
6
7. Key Predictive Questions
• In a constantly changing market,
how do you link the resources
under your control (such as your
Human Capital) to your desired
business outcomes in order to fend
off future competitors from inside
and outside your industry?
WWW.SIMMETHOD.COM
2/15/2014
7
8. SIMMETHOD
Industry Agnostic Value Creation
Correlations
Correlation between the
HR and the Value
Creation Index
2/15/2014
WWW.SIMMETHOD.COM
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10. -5
2/15/2014
Facebook
Automatic Data
EMC
Verisk Analytics
WWW.SIMMETHOD.COM
Computer Sciences
American Express
Expedia
Atos
Capgemini
Symantec
Adecco
Fidelity National Information
-15
Dell
Manpower
NetApp
Tui
Sodexco
Fiserv
CA
Innolux
United Technology
Alliance
Quanta Computer
Western Union
HP
Compal Elecronics
Randstad
Honeywell International
-10
Thomas Cook
Brambles
Adobe
SIMMETHOD’s 2013 Bottom 50%
Correlation Between HR and Value Creation Index
15
10
5
0
SIMMETHOD
HR Index
SIMMETHOD
Value
Creation
Index
-20
-25
10
11. Gap to Best-In-Class Performance
Bottom 50% to Top 50%
The Human Capital profile and
competitive advantage of the
SIMMETHOD Best-in-Class and
bottom 50%
WWW.SIMMETHOD.COM
2/15/2014
11
12. Gap to Best-In-Class Performance
Bottom 50% to Top 50%
Is your Human Capital gap to
the SIMMETHOD Best-In-Class
a predictor of your future risk
and performance?
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WWW.SIMMETHOD.COM
12
13. Gap to Best-In-Class Performance
Bottom 50% to Top 50%
SIMMETHOD’s BestIn-Class businesses
create 4.2x more
profit per employee
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WWW.SIMMETHOD.COM
13
14. Gap to Best-In-Class Performance
Bottom 50% to Top 50%
SIMMETHOD’s Best-InClass businesses create
4.2x more profit per
employee with half the
debt per employee
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14
15. Gap to Best-In-Class Performance
Bottom 50% to Top 50%
SIMMETHOD’s Best-InClass businesses create
2.5x more value per
employee with half the
debt per employee
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16. Gap to Best-In-Class Performance
Bottom 50% to Top 50%
SIMMETHOD’s Best-InClass businesses
generate 70% more
cash per employee
with half the debt per
employee
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WWW.SIMMETHOD.COM
16
17. Gap to Best-In-Class Performance
Bottom 50% to Top 50%
SIMMETHOD’s Best-InClass businesses create
2.5x more value per
employee with 10%
lower overheads per
employee
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WWW.SIMMETHOD.COM
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18. Gap to Best-In-Class Performance
Bottom 50% to Top 50%
SIMMETHOD’s Best-InClass businesses can
generate the same
profit as the bottom
50% with only 25% of
their workforce
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19. Gap to Best-In-Class Performance
Bottom 50% to Top 50%
SIMMETHOD’s Best-InClass businesses need
2.5x less employees to
create the same $1 of
market value as the
bottom 50%
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WWW.SIMMETHOD.COM
19
21. SIMMETHOD
Industry and Business Trends
• Are you mistaking any positive growth
for real competitive advantage?
• When your rate of performance
improvement is slower than the
SIMMETHOD Best-In-Class your level of
business risk is increasing.
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WWW.SIMMETHOD.COM
21
22. SIMMETHOD
2014 Industry and Business Trends
• SIMMETHOD’s Strategy & Execution
Performance Predictive Indices and trends
are not deterministic. Businesses that act on
their leading indicators and risk alerts will
improve their 2014 performance as will be
shown in the forthcoming update of the
SIMMETHOD database, performance
predictive Indices and correlations.
WWW.SIMMETHOD.COM
2/15/2014
22
23. SIMMETHOD Industry and Business
Trends (2012-2013)
Case Studies:
• Apple
• Google
• SAP
• Microsoft
• Oracle
• Vmware
• Yahoo
• Intuit
• Amazon
2/15/2014
•
•
•
•
•
•
•
•
•
•
Salesforce
IBM
LinkedIn
Dell
HP
Moody’s
Brambles
Manpower
Randstad
Adecco
WWW.SIMMETHOD.COM
23
24. SIMMETHOD Industry and Business Trends
HR contribution to Business Value 2012 to 2013
60
Although still above average B-I-C Apple‘s
Strategy/Execution Performance Predictive
Index and HR Index have decreased at a faster
rate than the B-I-C average showing a drop in
competitive advantage against peers and the
Best-In-Class
50
40
30
2012
20
10
2013
0
Apple Strategy
/Execution
Performance
Predictive index
2/15/2014
B-I-C Strategy
/Execution
Performance
PredictiveIindex
Apple HR Index
WWW.SIMMETHOD.COM
B-I-C HR Index
24
25. 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 all above Best-In-Class
average
35
30
25
2012
20
15
10
2013
5
0
Google Strategy
/Execution
Performance
Predictive index
2/15/2014
B-I-C Strategy
/Execution
Performance
predictive Index
Google HR Index
WWW.SIMMETHOD.COM
B-I-C HR Index
25
26. SIMMETHOD Industry and Business Trends
HR contribution to Business Value 2012 to 2013
35
HR contribution to Business value has dropped to
negative scores and the Strategy/Execution
Performance Predictive Index has dropped at a faster
rate than the SIMMETHOD Best-In-Class
30
25
20
2012
15
10
2013
5
0
-5
SAP Strategy
/Execution
Performance
Predictive index
2/15/2014
B-I-C Strategy
/Execution
Performance
Predictive Index
SAP HR Index
WWW.SIMMETHOD.COM
B-I-C HR Index
26
27. SIMMETHOD Industry and Business Trends
HR contribution to Business Value 2012 to 2013
35
Although still at B-I-C level, Microsoft’s HR contribution to
Business value has dropped triggering (among other factors)
a drop in the Strategy/ Execution Performance Predictive
Index
30
25
2012
20
15
10
2013
5
0
Microsoft Strategy
/Execution
Performance
Predictive index
2/15/2014
B-I-C Strategy
/Execution
Performance
Predictive Index
Microsoft HR Index
WWW.SIMMETHOD.COM
B-I-C HR Index
27
28. SIMMETHOD Industry and Business Trends
HR contribution to Business Value 2012 to 2013
30
Oracle’s HR Index has dropped
signaling a drop on HR’s
contribution to Business value in
relation to the B-I-C. The
Strategy/Execution Performance
Predictive Index has dropped
faster than the SIMMETHOD B-I-C
25
20
15
2012
10
2013
5
0
Oracle Strategy
/Execution
Performance
Predictive index
2/15/2014
B-I-C Strategy
/Execution
Performance
Predictive Index
Oracle HR Index
WWW.SIMMETHOD.COM
B-I-C HR Index
28
29. SIMMETHOD Industry and Business Trends
HR contribution to Business Value 2012 to 2013
25
Although Vmware experienced
drops in HR and Strategy
/Execution Performance
Predictive indices, their scores
are still aligned to B-I-C averages
20
15
2012
10
2013
5
0
VMware Strategy
/Execution
Performance
Predictive index
2/15/2014
B-I-C Strategy
/Execution
Performance
Predictive Index
VMware HR Index
WWW.SIMMETHOD.COM
B-I-C HR Index
29
30. SIMMETHOD Industry and Business Trends
HR contribution to Business Value 2012 to 2013
30
Yahoo has improved its
competitive position against its
peers and the SIMMETHOD B-I-C
partially driven by its HR
increased contribution to
Business value
25
20
15
2012
10
2013
5
0
Yahoo Strategy
/Execution
Performance
Predictive index
2/15/2014
B-I-C Strategy
/Execution
Performance
Predictive Index
Yahoo HR Index
WWW.SIMMETHOD.COM
B-I-C HR Index
30
31. SIMMETHOD Industry and Business Trends
HR contribution to Business Value 2012 to 2013
25
Intuit has improved its
competitive position against its
peers and the SIMMETHOD B-I-C
partially driven by increasing HR
Business value contribution
20
15
2012
10
2013
5
0
Intuit Strategy
/Execution
Performance
Predictive index
2/15/2014
B-I-C Strategy
/Execution
Performance
Predictive Index
Intuit HR Index
WWW.SIMMETHOD.COM
B-I-C HR Index
31
32. SIMMETHOD Industry and Business Trends
HR contribution to Business Value 2012 to 2013
25
Amazon’s drop in the
Strategy/Execution
Performance Predictive Index
against the SIMMETHOD B-I-C
is not driven by its HR that is
still above B-I-C average
20
15
2012
10
2013
5
0
Amazon Strategy
/Execution
Performance
Predictive index
2/15/2014
B-I-C Strategy
/Execution
Performance
Predictive Index
Amazon HR Index
WWW.SIMMETHOD.COM
B-I-C HR Index
32
33. SIMMETHOD Industry and Business Trends
HR contribution to Business Value 2012 to 2013
25
A slight improvement on
Salesforce’s HR Index was not
sufficient to drive its
Strategy/Execution Performance
Predictive Index above
SIMMETHOD’s B-I-C average
20
15
10
2012
2013
5
0
-5
Salesforce Strategy
/Execution
Performance
Predictive index
2/15/2014
B-I-C Strategy
/Execution
Performance
Predictive Index
Salesforce HR Index
WWW.SIMMETHOD.COM
B-I-C HR Index
33
34. SIMMETHOD Industry and Business Trends
HR contribution to Business Value 2012 to 2013
25
Although IBM’s HR Index has
improved was still below B-I-C
average and not sufficient to
drive its Strategy/Execution
Performance Predictive Index
to average B-I-C level
20
15
2012
10
2013
5
0
-5
IBM Strategy
/Execution
Performance
Predictive index
2/15/2014
B-I-C Strategy
/Execution
Performance
Predictive Index
IBM HR Index
WWW.SIMMETHOD.COM
B-I-C HR Index
34
35. SIMMETHOD Industry and Business Trends
HR contribution to Business Value 2012 to 2013
25
LinkedIn’s drop on the HR Index is
in line with the B-I-C average. Its
Strategy/Execution Performance
Predictive Index has improved
considerably in relation to peers
and the SIMMETHOD’s B-I-C
20
15
2012
10
2013
5
0
LinkedIn Strategy
/Execution
Performance
Predictive index
2/15/2014
B-I-C Strategy
/Execution
Performance
Predictive Index
LinkedIn HR Index
WWW.SIMMETHOD.COM
B-I-C HR Index
35
36. SIMMETHOD Industry and Business Trends
HR contribution to Business Value 2012 to 2013
30
Lost of competitive advantage at
both HR and Strategy/Execution
Performance Predictive Index
20
10
2012
0
-10
Dell Strategy
/Execution
Performance
Predictive index
B-I-C Strategy
/Execution
Performance
Predictive Index
Dell HR Index
B-I-C HR Index
2013
-20
-30
-40
2/15/2014
WWW.SIMMETHOD.COM
36
37. SIMMETHOD Industry and Business Trends
HR contribution to Business Value 2012 to 2013
30
Improvement on HR’s contribution to
Business value plus other areas of the
Business triggered an improvement in
the Strategy/ Execution Performance
Predictive Index (although still
negative)
20
10
2012
0
-10
HP Strategy
/Execution
Performance
Predictive index
B-I-C Strategy
/Execution
Performance
Predictive Index
HP HR Index
B-I-C HR Index
2013
-20
-30
-40
2/15/2014
WWW.SIMMETHOD.COM
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38. SIMMETHOD Industry and Business Trends
HR contribution to Business Value 2012 to 2013
25
Moody’s drop in its HR
contribution to Business value is
also reflected on its drop in the
Strategy/Execution performance
Predictive index against its peers
and SIMMETHOD B-I-C
20
15
2012
10
2013
5
0
Moody's Strategy
/Execution
Performance
Predictive index
2/15/2014
B-I-C Strategy
/Execution
Performance
Predictive Index
Moody's HR Index
WWW.SIMMETHOD.COM
B-I-C HR Index
38
39. SIMMETHOD Industry and Business Trends
HR contribution to Business Value 2012 to 2013
25
Although Brambles has improved
both its HR and
Strategy/Execution Performance
Predictive indices is still on
negative score territory and
below its peers and the B-I-C
20
15
10
2012
5
2013
0
-5
-10
Brambles Strategy
/Execution
Performance
Predictive index
B-I-C Strategy
/Execution
Performance
Predictive Index
Brambles HR Index
B-I-C HR Index
-15
2/15/2014
WWW.SIMMETHOD.COM
39
40. SIMMETHOD Industry and Business Trends
HR contribution to Business Value 2012 to 2013
30
Manpower has narrowed the
gap to the B-I-C although is still
on negative score territory
20
10
2012
0
-10
Manpower Strategy
/Execution
Performance
Predictive index
B-I-C Strategy
/Execution
Performance
Predictive Index
Manpower HR Index
B-I-C HR Index
2013
-20
-30
-40
2/15/2014
WWW.SIMMETHOD.COM
40
41. SIMMETHOD Industry and Business Trends
HR contribution to Business Value 2012 to 2013
30
Randstad’s improvement on its HR
Index has contributed to a
corresponding improvement on its
Strategy/Execution Performance
Predictive Index
20
10
0
-10
-20
Randstad Strategy
/Execution
Performance
Predictive index
B-I-C Strategy
/Execution
Performance
Predictive Index
Randstad HR Index
B-I-C HR Index
2012
2013
-30
-40
-50
2/15/2014
WWW.SIMMETHOD.COM
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42. SIMMETHOD Industry and Business Trends
HR contribution to Business Value 2012 to 2013
30
Adecco has lost competitive
advantage against its peers and
the SIMMETHOD Best-In-Class
20
10
2012
0
-10
Adecco Strategy
/Execution
Performance
Predictive index
B-I-C Strategy
/Execution
Performance
Predictive Index
Adecco HR Index
B-I-C HR Index
2013
-20
-30
-40
2/15/2014
WWW.SIMMETHOD.COM
42
44. SIMMETHOD Competitive Intelligence
HR View 2013
35
30
25
SIMMETHOD HR
Index
20
15
10
5
0
-5
Facebook 2013
-10
-15
-20
2/15/2014
Yahoo 2013
LinkedIn 2013
2013 B-I-C
Yahoo’s HR contribution to Business value is
reflected on an above B-I-C performance index.
LinkedIn has also improved its competitive
position at both HR and Strategy/Execution
WWW.SIMMETHOD.COM
SIMMETHOD
Strategy
/Execution
Performance
Predictive Index
44
45. SIMMETHOD Competitive Intelligence
HR View 2013
25
20
Although IBM and Oracle have higher HR Index
than SAP, Oracle and SAP are unlocking more
value from their Human Capital than IBM (in
relation to the SIMMETHOD B-I-C)
SIMMETHOD HR
Index
15
10
SIMMETHOD
Strategy /Execution
Performance
Predictive Index
5
0
IBM
Oracle
SAP
2013 B-I-C
-5
2/15/2014
WWW.SIMMETHOD.COM
45
46. SIMMETHOD Competitive Intelligence
HR View 2013
45
40
35
Although Amazon’s HR Index is above
B-I-C, other areas of the Business drag
the SIMMETHOD Strategy/Execution
Performance Predictive Index down in
relation to the SIMMETHOD B-I-C
SIMMETHOD
HR Index
30
25
20
SIMMETHOD
Strategy
/Execution
Performance
Predictive Index
15
10
5
0
Google
2/15/2014
Amazon
Apple
WWW.SIMMETHOD.COM
2013 B-I-C
46
47. SIMMETHOD Competitive Intelligence
HR View 2013
30
20
10
SIMMETHOD Performance
Predictive Indices show your
strengths, weaknesses, risks and
opportunities in relation to
current and future competitors
SIMMETHOD
HR Index
0
HP
Dell
Microsoft
-10
2013 B-I-C
SIMMETHOD
Strategy
/Execution
Performance
Predictive Index
-20
-30
-40
2/15/2014
WWW.SIMMETHOD.COM
47
48. SIMMETHOD Competitive Intelligence
HR View 2013
25
20
Salesforce HR Index is below B-I-C level
dragging down its Strategy/Execution
Performance Predictive Index below
the SIMMETHOD B-I-C
SIMMETHOD HR
Index
15
10
SIMMETHOD
Strategy
/Execution
Performance
Predictive Index
5
0
Vmware
Salesforce
Intuit
2013 B-I-C
-5
2/15/2014
WWW.SIMMETHOD.COM
48
49. SIMMETHOD Competitive Intelligence
HR View 2013
30
20
10
Randstad outperforms its competitors
at HR Index level however, its
Strategy/Execution Performance
Predictive Index is negative
SIMMETHOD HR
Index
0
Adecco
Manpower
Randstad
2013 B-I-C
-10
SIMMETHOD
Strategy /Execution
Performance
Predictive Index
-20
-30
-40
2/15/2014
WWW.SIMMETHOD.COM
49
50. SIMMETHOD Competitive Intelligence
HR View 2013
50
40
30
SIMMETHOD HR
Index
20
10
0
-10
American Express
-20
-30
-40
Visa
Mastercard
2013 B-I-C
The SIMMETHOD Strategy/Execution
Performance Predictive Index reflects your
ability to strategize and execute against your
peers and the B-I-C in multiple industries
SIMMETHOD
Strategy
/Execution
Performance
Predictive Index
-50
2/15/2014
WWW.SIMMETHOD.COM
50
51. SIMMETHOD™
Risk and Opportunities Alerts
• The SIMMETHOD algorithms review business
data and stockholders valuation-decisions
across business sectors and build industryagnostic 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.
2/15/2014
WWW.SIMMETHOD.COM
51
52. 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.
2/15/2014
WWW.SIMMETHOD.COM
52
53. 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.
2/15/2014
WWW.SIMMETHOD.COM
53
54. 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.
2/15/2014
WWW.SIMMETHOD.COM
54
55. 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
2/15/2014
WWW.SIMMETHOD.COM
55
56. SIMMETHOD™
Risk and Opportunities Alerts
SIMMETHOD is in the top 1% of most
viewed in Slideshare and has been
“Hot” on LinkedIn, Twitter and
Facebook 44 times.
2/15/2014
WWW.SIMMETHOD.COM
56
57. 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
2/15/2014
WWW.SIMMETHOD.COM
57