© 2019 by CompanyBW (transfer of knowledge patform) 

www.purpose-driven-investments.com

A Heuristic and Algorithmic

combined Model

Viability drives purpose and profit

Viability is a dynamic measure of the state of a company's organizational performance system and strategic responsiveness of the value drivers characterized by the financial, market and governance potential (also called dynamic value drivers or growth potentials) which satisfies the demands on long-term value creation. If the potential is insufficient to satisfy these demands, the state is stressed, and it will destroy values; and it cannot sustain a sustainable growth curve.

value chain dynamics_update.PNG
Explanation of the model

By following and initial algorithmic classification with an heuristic analysis of the properties of ecosystems the model revolutionized the interdependent relationships between company growth potentials to measure viability and predict the behaviour of a company to give unique strategic intelligence for investment and resource allocation decisions. Predictive data analytics and system science are combined in one consistent, integrated approach to design forward-looking KPIs that support investment decisions and monitor real-time operating performance during the life-cycle of an investment.

Below you see a visualization of the model. The pictures are blurred to protect intellectual property. You can contact us if you are interested to use the model.

To summarize, the model combines macro and micro business elements as they are interdependent and cannot be assessed separately as in a complex system, small events might have high impact consequences. The power of the model (as manifested in the forward-looking KPIs that it generates) is that it combines qualitative and quantitative data. It transfers qualitative data (e.g., viability, culture, etc.) into quantitative data by seeing a company as a complex adaptive system. Therefore, it discounts the expert factor and takes out the human element or bias, which makes it more reliable than qualitative models and more effective than a quantitative model.

“Resource allocation is one of the most difficult challenges for a company and maybe the most important role of a Board. The model gives valuable information on how to pro-active allocate resources to drive long-term value creation”

Jeffrey Bekkerin