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Strategy-2017

Bj淡rnar Eide
Bj淡rnar Eide

The document discusses strategic planning and business valuation. It provides definitions of strategy, outlines elements of a strategic plan including goals and milestones, and describes tools like the lean business planner for organizing ideas. It also discusses strategic business valuations for communicating financials simply, using methods like earnings bands and efficiency frontiers. Metrics like return and risk-adjusted return are evaluated at the business unit level against benchmarks.

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We make owners and management visualize the potential with our approach STRATEGY Its about the approach
We make owners and management visualize the potential with our approach Michael Porter, a strategy expert and professor at Harvard Business School, defines strategy to be; How an organization communicates its unique position, How an organizations resources, skills, and competencies should be combined to create competitive advantage. The definition of strategy STRATEGY Copyright 息 2017 Beide Forvaltning A/S
Strategic Planning STRATEGY Copyright 息 2017 Beide Forvaltning A/S The Strategic Plan How elements are combined to build a competitive advantage. The overall disposition contains prioritized descriptions of main elements. In arguing for the various strategic alternative focus should be placed on; I. Structural difference in product offering. II. Market peneration implications (criteria). III. Variations in financials of strategic alternatives. The overall goal of the plan is to ensure that the reader understand how the unique elements combine to form the overall strategy. By conducting interviews, studies, research and questionaires a structured disposition is created of elements to bring in to the overall description of how the company in question will create a recurring and sustainable business model.
Lean Business Planner STRATEGY Copyright 息 2017 Beide Forvaltning A/S Digital tool to organize your ideas and build the business case. Lean business planner allows you to identify, organize, test and support your ideas in a dynamic environment to build the case. As opposed to traditional design of business plans the dynamic features of Lean Business Planner will enable you to work with many ideas simultaneously to identify what is unique, what segments your idea is intended for and how to support your idea by defining a test plan, list of resources and determine financial criteria to be met. Dynamic approach versus traditional approach. The dynamic approach should be viewed as complimentary to the traditional design approach using dispositions and documents. By first testing out your ideas dynamically details, recommendations and descriptions can later be transferred to strategic documents.
Strategic plans STRATEGY Copyright 息 2017 Beide Forvaltning A/S Vision /goal setting Secure goal Define a goal that you feel for sure you will reach by acting the way you are accustomed too. Realistic goal Define a goal that you will be very glad to accomplish. This goal level demands that you break out of some routines, put In an extra gear and work actively to accomplish objective(s). Barrier breaking goal Define a goal level that really breaks with some of your routines for you on a personal level. Vision, goals and structured milestone(s) Requires a clear understanding of what realistic S.M.A.R.T activities to pursue. Specific : Are your goals specific enough. Measurable : Are the goals measurable. Applicable : Have the goals been assigned Realistic : Are the goals realistic given resources Timetable : Has a timetable been defined.
The assesment scoring model is designed to rate capabilities based on a set number of questions and assessments to rate where the organisation stands as a whole. The model can be configured to set weights to the categories to be included in the overall assessment of readiness and maturity in relationship to comparable companies. H i g h e st n u m b e r i s b e s t Key drivers for success Points Company 1 Points Company 2 Points Company 3 Points Company 4 Weighted Point Score 1. Strategic Makeover 232 212 199 192 209 2. Technology (how it is described) 179 167 169 153 167 3. Lobbying / Networking 96 86 75 78 84 4. Financial 102 98 126 113 110 5. Visual and branding identity 36 36 39 43 39 6. Advanced 48 48 48 48 48 7. Digital / Artifical Intelligence 48 48 48 48 48 Total Scores 740 694 704 673 703 RANK Aggregate Scores 1 4 2 5 3 Specify Makeover Criteria (max 10): Weight% 1. Strategy 25% 2. Technology 20% 3. Lobbying / Networking 10% 4. Financial 15% 5. Visual 10% 6. Advanced 10% 7. Digital / Artifical Intelligence 10% Sum: 100% Point scoring model to rate capabilities within categories for start-up companies. Assessment of capabilities, where a company stands requires a scoring method to assess status, plan activities and set up a structured improvement program for the next 3 and 12 months. Assessment scoring model STRATEGY Copyright 息 2017 Beide Forvaltning A/S The model will score points based on a set number of questions within each category whereas a scaling system i used (1-10) that rates the company relative to other companies, industry etc. The point scoring system can be used to rate a set number of companies against each other.
Innovative new methods integrated with accounting data to build financial statement(s). Multiple valuation methodologies and core contingencies to portray financial summaries (consolidated and by BUs). Ability to build strategic efficient frontier views by applying the following; Build alternative strategic scenarios. Hedging methodologies - many type of hedging instruments. Fair Value / Cash flow hedging assumptions. Pricing formulas. Definition valuation benchmarks (over value / under value). Construct your own or utilize standard benchmarks. Integration with 束market / transaction platforms損 . SBV - Explains financials associated with a business case or business valuation in a simple manner. We make valuing and communicating a business case or business simple by applying asset, income and market based methodologies. Strategic business valuations (SBV) STRATEGY Copyright 息 2017 Beide Forvaltning A/S
NetPresentValue(NPV/IRR) Portfolio Risk Efficient Frontier Investment alternatives / hedgingstrategies Figure 1.0 Describes how the composition of earnings portrayed through net present value (NPV) and internal rate of return (IRR) would look differently based on the earnings risk associated with each earnings composition (investment alternative), Figure 1.0. Efficient frontier views Composition of earnings. Utilizes the efficient frontier view CAPM (Capital Asset Pricing Model) Gives a consisting framework where valuation methodologies, investment composition as well as hedging and pricing methods can be varied utilizing asset, income and market based methods. Efficient frontier STRATEGY Copyright 息 2017 Beide Forvaltning A/S
High EPS targetLow EPS target High Earnings Band Low Earnings Band BU #2 BU #1 BU #3 BU #4 Figure 2.0 Strategic placement of BU EPS band (stochastic confidence 95%) Strategic view that describes earnings volatility and expected earnings per share Target that varies by business unit, valuation principles and varying investment alternatives gives insight into overall earnings expectancy. Figure 2.0 describes how expected financials can be communicated utilizing SBV in a strategic view based on an expected earnings band with an expected earnings per share target. Earnings band is in this context referred to as a measure of expected variability in earnings while EPS target is referred to the absolute earning per share. Strategic view - Implications STRATEGY Copyright 息 2017 Beide Forvaltning A/S
Variation of quantifications How the SBV behaves under various valuation methodologies and investment compositions. Requires a consistent framework whereas measurements are view in a consistent manner. Portfolio Risk (EPS) at 95% confidence ALT - 3ALT- 1 ALT- 2 ALT - 4 ALT-1 ALT-2 ALT-3 ALT-4 EPS -0,05 -0,03 -0,05 -0,01 EaR -0,10 -0,08 +0,02 -0,12 VaR -0,12 -0,12 0,00 -0,12 CVaR 1 M 1,2M 1,3M 1,4M Figure 3.0 Variations of financials by principles, investment case) Figure 3.0 depicts how a consistent view for valuation measurements will enable the user to address earnings per share impact utilizing standardized measurement of expected variability. OperationalEarnings(EPS) FIGURE Incremental Portfolio changes 95% confidence Measurement framework STRATEGY Copyright 息 2017 Beide Forvaltning A/S In addressing the standardized measurement framework, the alternative methodologies for valuation as well as composition of earnings mix (investment alternatives, hedging compositions) can be viewed consistently.
Varying valuation principles, investment cases increases confidence in the financial outlook Enhances the ability to perform risk adjusted reviews assessing the forward outlook and gives insight into what benchmark and relative benchmarks to choose. UtilityS&P Industry S&P BUTotal BusinessUnit Return Sharp Figure 4.0 Risk adjusted performance BU Unit against S&P 500 (stochastic confidence 95%) Per Business Unit Return Deviance from Index Sharpe Ratio Sortino Ratio Last Calendar Year 4,5% 0,1% 0,262 0,015 Last 3 calendar years 6,7% 1,2 % 0,252 0,058 Last 5 calendar years 8,0% 0,4% 0,376 -0,009 0 % 5 % 10 % 15 % 20 % 25 % 30 % 35% Figure 4.0 depicts how return and risk information for a particular business unit can be used to compare returns and risk adjusted metrics for selected benchmarks. Benchmarks can also be built by evaluating / assessing earnings characteristics for the consolidated earnings view utilizing the SBV strategic view utilizing the various valuation principles and investment cases. Tactical implications Copyright 息 2017 Beide Forvaltning A/SSTRATEGY Table 4.1.2 Capital Allocation Matrix / Tactical allocations - BU Units (stochastic confidence 95%)
Product & Prices Strategy T Copyright 息 2017 Beide Forvaltning A/S Product Description Prices Strategic plan Design of a strategic plan focusing on utilizing lean business planner and addressing an outline tailored to the industry and offering in question containing plan categories and content of the highest quality. Fixed price of NOK 100,000 to arrive at a investor ready strategic plan up to 150 hours. Each hour priced at $150 thereafter. Scoring model Design of a scoring model with design of weight categories for the scoring purpose in question (rank external porfolio managers, evaluate RFP, score start-up, venture copmany capabilities) including all qualitative and quantitative questions to be addressed in arriving at an overall comparable scoring. Fixed price of NOK 50,000 to arrive at a investor ready strategic plan up to 75 hours. Each hour priced at $150 thereafter. STRATEGY When building the strategic approach, the analytical mindset require depth and precision to arrive at a unique offering, a recurring business model and realistic goal setting.

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Strategy-2017

  • 1. We make owners and management visualize the potential with our approach STRATEGY Its about the approach
  • 2. We make owners and management visualize the potential with our approach Michael Porter, a strategy expert and professor at Harvard Business School, defines strategy to be; How an organization communicates its unique position, How an organizations resources, skills, and competencies should be combined to create competitive advantage. The definition of strategy STRATEGY Copyright 息 2017 Beide Forvaltning A/S
  • 3. Strategic Planning STRATEGY Copyright 息 2017 Beide Forvaltning A/S The Strategic Plan How elements are combined to build a competitive advantage. The overall disposition contains prioritized descriptions of main elements. In arguing for the various strategic alternative focus should be placed on; I. Structural difference in product offering. II. Market peneration implications (criteria). III. Variations in financials of strategic alternatives. The overall goal of the plan is to ensure that the reader understand how the unique elements combine to form the overall strategy. By conducting interviews, studies, research and questionaires a structured disposition is created of elements to bring in to the overall description of how the company in question will create a recurring and sustainable business model.
  • 4. Lean Business Planner STRATEGY Copyright 息 2017 Beide Forvaltning A/S Digital tool to organize your ideas and build the business case. Lean business planner allows you to identify, organize, test and support your ideas in a dynamic environment to build the case. As opposed to traditional design of business plans the dynamic features of Lean Business Planner will enable you to work with many ideas simultaneously to identify what is unique, what segments your idea is intended for and how to support your idea by defining a test plan, list of resources and determine financial criteria to be met. Dynamic approach versus traditional approach. The dynamic approach should be viewed as complimentary to the traditional design approach using dispositions and documents. By first testing out your ideas dynamically details, recommendations and descriptions can later be transferred to strategic documents.
  • 5. Strategic plans STRATEGY Copyright 息 2017 Beide Forvaltning A/S Vision /goal setting Secure goal Define a goal that you feel for sure you will reach by acting the way you are accustomed too. Realistic goal Define a goal that you will be very glad to accomplish. This goal level demands that you break out of some routines, put In an extra gear and work actively to accomplish objective(s). Barrier breaking goal Define a goal level that really breaks with some of your routines for you on a personal level. Vision, goals and structured milestone(s) Requires a clear understanding of what realistic S.M.A.R.T activities to pursue. Specific : Are your goals specific enough. Measurable : Are the goals measurable. Applicable : Have the goals been assigned Realistic : Are the goals realistic given resources Timetable : Has a timetable been defined.
  • 6. The assesment scoring model is designed to rate capabilities based on a set number of questions and assessments to rate where the organisation stands as a whole. The model can be configured to set weights to the categories to be included in the overall assessment of readiness and maturity in relationship to comparable companies. H i g h e st n u m b e r i s b e s t Key drivers for success Points Company 1 Points Company 2 Points Company 3 Points Company 4 Weighted Point Score 1. Strategic Makeover 232 212 199 192 209 2. Technology (how it is described) 179 167 169 153 167 3. Lobbying / Networking 96 86 75 78 84 4. Financial 102 98 126 113 110 5. Visual and branding identity 36 36 39 43 39 6. Advanced 48 48 48 48 48 7. Digital / Artifical Intelligence 48 48 48 48 48 Total Scores 740 694 704 673 703 RANK Aggregate Scores 1 4 2 5 3 Specify Makeover Criteria (max 10): Weight% 1. Strategy 25% 2. Technology 20% 3. Lobbying / Networking 10% 4. Financial 15% 5. Visual 10% 6. Advanced 10% 7. Digital / Artifical Intelligence 10% Sum: 100% Point scoring model to rate capabilities within categories for start-up companies. Assessment of capabilities, where a company stands requires a scoring method to assess status, plan activities and set up a structured improvement program for the next 3 and 12 months. Assessment scoring model STRATEGY Copyright 息 2017 Beide Forvaltning A/S The model will score points based on a set number of questions within each category whereas a scaling system i used (1-10) that rates the company relative to other companies, industry etc. The point scoring system can be used to rate a set number of companies against each other.
  • 7. Innovative new methods integrated with accounting data to build financial statement(s). Multiple valuation methodologies and core contingencies to portray financial summaries (consolidated and by BUs). Ability to build strategic efficient frontier views by applying the following; Build alternative strategic scenarios. Hedging methodologies - many type of hedging instruments. Fair Value / Cash flow hedging assumptions. Pricing formulas. Definition valuation benchmarks (over value / under value). Construct your own or utilize standard benchmarks. Integration with 束market / transaction platforms損 . SBV - Explains financials associated with a business case or business valuation in a simple manner. We make valuing and communicating a business case or business simple by applying asset, income and market based methodologies. Strategic business valuations (SBV) STRATEGY Copyright 息 2017 Beide Forvaltning A/S
  • 8. NetPresentValue(NPV/IRR) Portfolio Risk Efficient Frontier Investment alternatives / hedgingstrategies Figure 1.0 Describes how the composition of earnings portrayed through net present value (NPV) and internal rate of return (IRR) would look differently based on the earnings risk associated with each earnings composition (investment alternative), Figure 1.0. Efficient frontier views Composition of earnings. Utilizes the efficient frontier view CAPM (Capital Asset Pricing Model) Gives a consisting framework where valuation methodologies, investment composition as well as hedging and pricing methods can be varied utilizing asset, income and market based methods. Efficient frontier STRATEGY Copyright 息 2017 Beide Forvaltning A/S
  • 9. High EPS targetLow EPS target High Earnings Band Low Earnings Band BU #2 BU #1 BU #3 BU #4 Figure 2.0 Strategic placement of BU EPS band (stochastic confidence 95%) Strategic view that describes earnings volatility and expected earnings per share Target that varies by business unit, valuation principles and varying investment alternatives gives insight into overall earnings expectancy. Figure 2.0 describes how expected financials can be communicated utilizing SBV in a strategic view based on an expected earnings band with an expected earnings per share target. Earnings band is in this context referred to as a measure of expected variability in earnings while EPS target is referred to the absolute earning per share. Strategic view - Implications STRATEGY Copyright 息 2017 Beide Forvaltning A/S
  • 10. Variation of quantifications How the SBV behaves under various valuation methodologies and investment compositions. Requires a consistent framework whereas measurements are view in a consistent manner. Portfolio Risk (EPS) at 95% confidence ALT - 3ALT- 1 ALT- 2 ALT - 4 ALT-1 ALT-2 ALT-3 ALT-4 EPS -0,05 -0,03 -0,05 -0,01 EaR -0,10 -0,08 +0,02 -0,12 VaR -0,12 -0,12 0,00 -0,12 CVaR 1 M 1,2M 1,3M 1,4M Figure 3.0 Variations of financials by principles, investment case) Figure 3.0 depicts how a consistent view for valuation measurements will enable the user to address earnings per share impact utilizing standardized measurement of expected variability. OperationalEarnings(EPS) FIGURE Incremental Portfolio changes 95% confidence Measurement framework STRATEGY Copyright 息 2017 Beide Forvaltning A/S In addressing the standardized measurement framework, the alternative methodologies for valuation as well as composition of earnings mix (investment alternatives, hedging compositions) can be viewed consistently.
  • 11. Varying valuation principles, investment cases increases confidence in the financial outlook Enhances the ability to perform risk adjusted reviews assessing the forward outlook and gives insight into what benchmark and relative benchmarks to choose. UtilityS&P Industry S&P BUTotal BusinessUnit Return Sharp Figure 4.0 Risk adjusted performance BU Unit against S&P 500 (stochastic confidence 95%) Per Business Unit Return Deviance from Index Sharpe Ratio Sortino Ratio Last Calendar Year 4,5% 0,1% 0,262 0,015 Last 3 calendar years 6,7% 1,2 % 0,252 0,058 Last 5 calendar years 8,0% 0,4% 0,376 -0,009 0 % 5 % 10 % 15 % 20 % 25 % 30 % 35% Figure 4.0 depicts how return and risk information for a particular business unit can be used to compare returns and risk adjusted metrics for selected benchmarks. Benchmarks can also be built by evaluating / assessing earnings characteristics for the consolidated earnings view utilizing the SBV strategic view utilizing the various valuation principles and investment cases. Tactical implications Copyright 息 2017 Beide Forvaltning A/SSTRATEGY Table 4.1.2 Capital Allocation Matrix / Tactical allocations - BU Units (stochastic confidence 95%)
  • 12. Product & Prices Strategy T Copyright 息 2017 Beide Forvaltning A/S Product Description Prices Strategic plan Design of a strategic plan focusing on utilizing lean business planner and addressing an outline tailored to the industry and offering in question containing plan categories and content of the highest quality. Fixed price of NOK 100,000 to arrive at a investor ready strategic plan up to 150 hours. Each hour priced at $150 thereafter. Scoring model Design of a scoring model with design of weight categories for the scoring purpose in question (rank external porfolio managers, evaluate RFP, score start-up, venture copmany capabilities) including all qualitative and quantitative questions to be addressed in arriving at an overall comparable scoring. Fixed price of NOK 50,000 to arrive at a investor ready strategic plan up to 75 hours. Each hour priced at $150 thereafter. STRATEGY When building the strategic approach, the analytical mindset require depth and precision to arrive at a unique offering, a recurring business model and realistic goal setting.