FutureView™ Modeling
Dynamic Strategic Modeling Tool
What is FutureView™ Modeling?
FutureView™ Modeling is a long-range strategic planning tool that models the impact of strategic decisions in terms of precise financial outcomes.
Why would I want FutureView™ Modeling?
FutureView™ Modeling dynamically models the impact of bottlenecks in an organization’s operations on company performance, and conversely, the net present value of moving or removing the bottleneck. For example, it can be used to calculate the impact of specific changes in R&D to the organization’s pipeline of new products, and then calculate the subsequent value that can be realized at the highest level (gross revenue, profits, stock price). It can also generate a mathematically derived profile of financial “goodness” against competitors, which can be used to develop standards of performance for strategic planning. In the hands of high-level decision makers, the tool can used to move around constraint points to see the impact of adding or reducing resources, or even examine the impact of rapid growth on profits.
How does it work?
FutureView™ Modeling works by automating the analytic processes of highly skilled strategists. First it places a particular organization in the context of its competitors and market space by gathering data on a client’s company and its competitors and building a comparative matrix. This is an automated process that uses publicly available data from various subscription services. In its simplest form, FutureView™ Modeling then allows the client to compare his or her company to an “ideal” company of its type and size on key performance indicators. This process identifies any obvious performance issues, such as low profits per employee or slower than optimal growth.
Furthermore, it allows the user to examine options for achieving a desired outcome.
After a building a detailed model of the company’s financials and the interactions between functions, the model identifies constraint points that may be contributing to less than stellar outcomes. Senior level decision makers use FutureView™ Modeling to determine what to work on and identify the biggest constraints and the biggest opportunities, and the projected future costs and benefits of key decisions about the company’s strategic direction. In addition, FutureView™ Modeling also models the ways in which strategic possibilities are constrained by capital structure (which includes debt, equity, cash and assets to form a cost of capital).