© 2019 by CompanyBW (transfer of knowledge patform) 

www.purpose-driven-investments.com

How Does It Work

In-depth functional analysis

First, you need to understand the current behavioural organisational and financial patterns of the company and how these are formed over time. This can be done by using cybernetics, assessment of the properties of complex adaptive systems and collecting time-stamped data, already available in organisations, about the variables that drive and modulate the dynamics of a system. Examples of data that will be used are board and directors related  data, cashflow statements, time stamped project data, policies and procedures, market research data , emails and employee surveys. In order not to cause too much disruption to the business different data collection and measurement techniques are used depending on the availability and quality of the data. (The model can also run on public data only but this will reduce the level of assurance). Once that data is collected, it is converted into an algorithm so the model can decide on the viability level. 

Assessment of potentials that drive sustainability

The outcome of the model classifies the behavioral patterns of a company into one of the following categories: Positive stressed, Viable, Negative Stressed, and Distressed. The classification of the behavioral patterns can serve to stress test the investor or board members’ view of the sustainable growth potential of the company or price risk. Furthermore, it provides a quantitative estimate as to whether the organizational system, including its management team, is capable of starting transformative change, innovation or successfully execute a sustainable long term growth strategy.

Dynamic resource allocation

One of the benefits of using the model is to identify emerging trends. The classifiers used are describing the way the system dynamics evolve. This time-oriented aspect enables the model to easily detect emerging organizational behavioural challenges that affect the successful execution of a company’s strategy. Dynamics that only recently occurred, and in most cases, did not have enough time to generate enough observable data to be presented by formal documents such as financial reports (for example a poor culture will be noted when projects are failing to result in a loss - reactive) can earlier be detected so pro-active intervention can take place and avoid unnecessary cost overruns.

Continuous monitoring of potentials consistency levels

Viability cannot be manipulated to create long-term value creation. It must be monitored and assisted as it reorganizes itself autonomously to a new state with the potential to create long-term value. If something violates the consistency (consistency is a feature of viability) the violation can indicate a shift in phases or in viability and stress levels. Consistency attracts and creates trust and performance and is dependent on communication flowing and non-bureaucratic way of working. Inconsistency does the opposite. The model is supported by a web application that runs statistical random real-time noise checks on the consistency level of functional interactions in the organisation and provides direct independent feedback within a few hours. This means that you do not have to wait for the next board meeting with the management team to get the results.