© 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 how a company's purpose informs its vision & mission & values and growth potentials to underpin a sustainable financial performance by measuring the viability level of a company. This can be done by collecting time-stamped data about the variables that drive and modulate the different potentials. 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 viability

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 growth potential of the company. Furthermore, it provides a quantitative estimate as to whether the organizational system, including its management team, is capable of starting innovation, successfully execute a turnaround strategy or continue a growth curve.

Dynamic resource allocation

One of the benefits of using the model is to identify emerging trends. The classifiers used are describing the way the potentials evolve. This time-oriented aspect enables the model to easily detect emerging organizational behavioral 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.

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 a new state. 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.