Critical Success Analytics
The 10 Key parameters of business that determine its outcome.
​
-
The root source of all Key Performance Indicators (KPI's)
-
The analytics that inform planning, strategy, investment, management and business diagnostics.
-
The quantitative inputs to the Business Model.
-
The essential tools that build and realise business value.
1. Market Demand
Definition: Market demand is the total amount of a product or service that consumers are willing and able to purchase at a given price over a specified period. Understanding market demand is crucial as it directly influences nearly every aspect of a business's strategy and operations. Key parameters in this algorithm include, Market Growth, Customer Acquisition & Retention, Transaction Values, Market Share, Lead Conversion and several other factors that affect the final Analytic Score derived from this parameter.​​
2. Capital Availability
Definition: Capital Availability refers to the financial resources that businesses use to fund their operations, expand, and achieve their goals. It is a crucial factor in determining the success of a business at various stages of its lifecycle. Capital can come from various sources, including personal savings, loans, investors, or profits generated by the business itself. The Capital Availability analysis uses several key ratios from the Balance Sheet and other financial statements to calculate the viability of the business, the use of this parameter within the business development model​ is often used to compare strategies to optimise outcomes.​
3. Management Experience
Definition: Management experience is a critical factor influencing the success of a business. Experienced management brings a wealth of knowledge, skills, and competencies that are essential for navigating the complexities of running a business. This metric, which is made up of 10 other variables, including the ability to develop and implement strategy, levels of competence in marketing, finance and operations etc, provides insights using psychometry and other measures of competence to calculate key management strengths. ​
4. Business Model Viability
Definition: Business model viability refers to the practicality and sustainability of a business model in generating revenue and ensuring long-term success. A viable business model effectively defines how a company creates, delivers, and captures value. Within the model calculation for Business Viability Performance Indicators such as Value Proposition development, Target Market, Alignment with goals and Objectives, Revenue streams and Cost Structures are all analysed to provide the aggregate scores for the overall business model.
5. Marketing Effectiveness
Definition: Marketing effectiveness refers to how well a company’s marketing efforts achieve its business goals and objectives. Effective marketing strategies help businesses attract and retain customers, build brand awareness, and drive sales. In building the overall business model "Marketing Effectiveness" looks at market research, segmentation, Integrated Marketing Communications (IMC) and many other performance indicators to calculate the overal impact of the marketing strategy and operations in the business.
6. Operational Efficiency
Definition: Operational efficiency is the next crucial measurement in the success of any business, particularly in a competitive market. It refers to the ability of an organisation to deliver products or services to its customers in the most cost-effective manner while ensuring high quality. A significant part of this calculation relates to the measurements of productivity, and business efficiency. Reducing costs, impact of technology, price elasticity and profit optimisation all impact on the calculations of this parameter.
7. Customer Satisfaction
Definition: Customer satisfaction is a vital component of business success. It refers to the degree to which customers are happy with a company's products, services, and overall experience. Satisfied customers are more likely to become repeat buyers, recommend the company to others, and contribute to the business's long-term profitability. This metric is calculated from Key Marketing Data such as Repeat Business & Customer Loyalty, Word of Mouth & Referrals, Competitive Advantage, Customer Lifetime Value (CLV) and Marketing costs. The data is collected from basic, but highly pertinent marketing and sales surveys.
8. Economic Environment
Definition: The "Economic Environment" encompasses a number of selected external economic factors that influence buying habits, spending patterns, and business operations. These factors can significantly impact the success or failure of the business. While external economic factors might be outside of organisational control, awareness of these factors and the ability to respond with agility will affect business performance. The calculation uses published sources of highly reliable data as inputs to the model.
9. Legal & Compliance
Definition: Legal and compliance refers to the adherence to laws, regulations, guidelines, and specifications relevant to a business's operations. Effective management of these issues is critical for the long-term success and sustainability of any business. Distinct business advantage can be gained by awareness of and adherence to changes in the legal and compliance environment. The model looks at business alignment with all aspects of legal compliance and provides management with clear strategy.
10. Innovative Capability
Definition: Innovation capability refers to a business's ability to develop new ideas, processes, products, or services that provide value and differentiate it from competitors. It encompasses creativity, the effective implementation of new concepts, and the capacity to respond to market changes and technological advancements. The Business Success Model uses simple insight metrics to reveal how well the organisation is able to use technology and innovation in its planning and execution. It is a key determinant of success.
Summary
These 10 key determinants provide all of the data necessary to complete a comprehensive and accurate analysis of existing or planned business performance.
No business is perfect, and all businesses change as they develop which is why the parameters that make up the 10 Key determinants may change and adapt to specific business circumstances, however the 10 key determinants are a distillation of all factors that determine the outcome and so provide a consistent and accurate method of planning, business forecasting, investment profiling and business turnaround prospects.
Call
International +44 1502 589856
In the UK 01502 589856
Out of hours 07768 555971
Follow