Unicist Fundamental Analysis applied to businesses as a unified field
Unicist fundamental analysis is an approach to diagnose business situations and possible evolutions.
Dealing with businesses as unified fields is extremely abstract and requires defining their fundamentals based on secondary information.
There is no possibility to measure most of the fundamentals in a direct way.
Unicist Scorecard
The Unicist Business Strategy Scorecard
The unicist scorecard is an objective strategy validation system. Its purpose is to validate the functionality of business action plans. It is integrated by a Business Marketplace Index (BMI), a Business Credibility Index (BCI) and a Business Growth Index (BGI).
The integration of these indexes defines the possibility and probability to achieve the goals proposed in a strategy.
These indexes are built on objective information. Based on their origin, the information included can be classified in:
- Quantitative (hard) information
- Quantitative perceptions
- Quantified opinions
The Unicist Scorecard is a complementary concept to the Balanced Scorecard. While the Balanced Scorecard is a bottom-up tool to approach the execution of strategies, the Unicist Scorecard is a top-down tool to sustain the building of strategies.
Unicist Scorecard
The nature of a business strategy is defined by
Business strategy = BMI * BGI * BCI
- BMI: Business Marketplace Index
- BGI: Business Growth Index
- BCI: Business Credibility Index
Business Marketplace Index
BMI = Natural Growth * Scenario Stability * Competitive Advantage
Natural Growth = Functional Needs * Technological Trends * Expectations
Scenario Stability = Social Stability * Economic Stability * Political Stability
Competitive Advantage = Brand * Technology * Product Differentiation
Business Growth Index
BGI = Growth * Market Influence Factor * Overall Resource Effectiveness
Growth = Competitive Advantage * Innovation * Technology
Market Influence Factor = Business * Product * Marketing
Overall Resource Effectiveness = Productivity * Quality * Availability
Business Credibility Index
BCI = ORE * Market Influence Factor * ROI
Overall Resource Effectiveness = Productivity * Quality * Availability
Market Influence Factor = Business * Product * Marketing
ROI = Margin * Leverage * Rotation
Unicist Performance Management:
The Sensory System of Businesses
Making an analogy between the sensory nervous system and performance management will help to apprehend the concept of performance management.
The sensory nervous system is what provides the energy conservation of living beings.
The sensory system seeks to ensure the survival of a living being limiting the actions so the being can survive.
Performance management is the sensory system that provides the energy conservation of businesses ensuring that the objectives can be achieved.
It has to deal with the systemic functions of a business and with the adaptive functions.
Systemic functions are those that happen within the boundaries of an activity and ensure the minimum strategy of a system.
Adaptive functions provide the maximal strategy in order to expand beyond the present boundaries of the business.
Performance management needs to monitor both the systemic functions and the adaptive functions of businesses.
The systemic functions are monitored using the Balanced Scorecard and KPIs which are based on the technical analytical knowledge of the activity.
The adaptive functions need to be monitored with the Unicist Scorecard which is based on fundamental analysis.
The Unicist Standard implies the integration of the Unicist Scorecard with the necessary KPIs to monitor the businesses providing the input to define when diagnoses have to be made in order to make decisions.
The Unicist Performance Management is the trigger of actions.
Businesses are imploding when control prevails over action and they are exploding when there is no adequate performance management.
Business performance depends on the adequate integration of the action procedures and the control management.
Sound knowledge of the technical analytical aspects of the activity allows selecting the adequate KPIs to monitor the systemic functions of the business.
Understanding the fundamentals of the business is required to develop the performance management of the adaptive functions of the activity.
Without the necessary knowledge there is no possibility to interpret the output of performance and it becomes dysfunctional endangering the success of the business.
Performance Management is subjectified when individual goals prevail over business goals.
In power driven organizations performance management becomes a power exercise and loses its purpose.
The definition of adequate performance management closes the circle of the implementation of the Unicist Standard.