The problem with companies is: they are complex! The bigger they are, the more complex they get. So if anybody in the management team or advisory board of a company thinks he is understanding what the system really does he should be considered a clairvoyant.
Most of the interactions in companies are invisible. This makes it very difficult to look behind the curtain of complex interdependencies. The so-called PIMS-project, which was designed to monitor key indicators of companies in comparison to other companies, key financial indicator calculations or balanced scorecards are simply not enough to understand the financial situation of a company. The art in finance is to look behind the figures in balance sheets or cost accounts.
Our corporate governance and finance software I-Matrix, which was originally designed to analyze companies, allows to monitor systematically the stability of key indicators inside and outside of companies. As a result of our analysis decision makers recognize which indicators get weak or strong before they govern earnings. This allows our clients to determine faster than their competitors which countermeasures have to be taken. As a positive side-effect figures that are calculated through feedback loops are also not so easy to manipulate through creative accouning.
The calculation of the feedback between indicators delivers evidence whether the business strategies lead to success within particular industries.
With the I-Matrix-Software clients get answers to basic questions like:
What is the typical profit rate for a company?;
What are the future operating results likely to be with current strategies?;
What strategies are likely to help improve future operating results?
We can show our clients how strategic variables like market share, investment intensity etc. influence the profitability of organizations. The relative comparison of indicators within a company can also establish a healthy competition between business units.
The goal of our cockpit-approach is to strengthen the strategic planning of companies. This leads to outstanding success especially in industries with a real-time environment. In the future companies will have to collect and analyze data on a daily basis. A lot of companies, especially in the financial industry, will emerge to real-time companies. For those companies our cockpit-approach is simply a must!
The service that offers our clients this outstanding control system is called: the Finance-Cockpit.