Indexing Operating Performance Tools
The method of Indexing operating performance uses comparable peer companies for relative performance assessment. Relevant peer companies for indexing operating performance are called peer companies. A group of peer companies is called a Peer Universe.
Unlike benchmarking, the perspective of indexing is time series analysis, since the goal of this type of performance measurement is to assess the change from a status in the previous period to a status in the current period. It is therefore not about the orientation towards "best practices" or certain peer company performance characteristics and processes, for the purpose of learning, but rather a method of performance measurement that neutralises external factors in the performance assessment.
Indexing operating performance uses the following tools which can be provided upon request by the Swiss financial research company Obermatt AG for interested corporate performance management executives.
- Operating Trend: The Operating Trend displays the development of the median or other location parameters of a metric of one or several Peer Universes across several time periods.
- Operating Index: The Operating Index shows a company's performance on a metric or key performance indicator compared with the median or average performance of that metric in the Peer Universe over a period of time.
- Operating Alpha: Operating Alpha is the difference between the actual value of a company's performance metric and the Operating Index of that metric of the respective Peer Universe.
- Operating Rank: The Operating Rank is the percentile rank of a performance metric within the relevant Peer Universe of this metric.
- Operating Position: The Operating Position shows the position of the company compared to the peer positions for several performance metrics of a period.
- Operating Distribution:The Operating Distribution shows a company's position within the statistical distribution of its Peer Universe for a metric for a certain time period.
- Operating Contribution: The Operating Contribution is the sum or the average of the Operating Ranks of a) several metrics of a company or a portfolio or b) one metric of several companies observed across several time periods.
- Operating Radar: The Operating Radar is a graphic display of the Operating Ranks of several metrics of a company, segment or investment project for a certain time period.
- Operating Rankings: An Operating Ranking is the tabulation of Operating Ranks of several companies and possibly several metrics for one time period.
- Triple Bottom Line: The Triple Bottom Line shows the entire company with its indexed performance for Profit, People and Planet in one overview.
Commercial databases are used to perform the analyses. An overview can be found in the list of data sources. The Swiss financial research company Obermatt AG provides the described analysis for interested corporate performance management executives upon request.