Method for evaluating a business using experiential data

Abstract

A method for evaluating and quantifying the risk, performance and potential of a business is disclosed. Experiential data generated by the business' activities is extracted and used as source data in evaluating the business. Experiential data includes both qualitative and quantitative information compiled from operating systems, databases, interviews, paper-based files and financial records. Business activities are measured individually and then collectively to understand the business as a whole. A set of metrics and a series of algorithms are used to measure the risk, performance and potential of the business drawing from the outset on the experiential data collected and a comparison to industry best practices.

1 . A method for evaluating performance comprising the steps of: 
 selecting an activity;    collecting data relevant to the activity;    selecting a driver;    selecting a set of metrics corresponding to the activity and the driver;    applying the metrics to the data to produce metric values;    determining a key business indicator (KBI) as a function of the metrics, the activity and the driver;    calculating a KBI value as a function of the metric values;    determining a performance rating as a function of the KPI value.    
     
     
         2 . The method of  claim 1  wherein the activity is selected from the group consisting of: 
 research,    portfolio management,    sales,    client service,    management,    treasury,    compliance,    controller    operations, and,    information technology.    
     
     
         3 . The method of  claim 1  wherein the data is collected from operating systems, databases, interviews and financial records.  
     
     
         4 . The method of  claim 1  wherein the driver is selected from the group consisting of: 
 productivity,    profitability,    scalability,    alpha generation, and    operational risk.    
     
     
         5 . The method of  claim 1  further comprising: 
 providing a mapped workflow for the activity;    comparing the mapped workflow to a best practice to obtain a variation;    scoring the variation to obtain a variation score;    calculating a best practice score for the activity as a function of the variation score.    
     
     
         6 . The method of  claim 1  further comprising: 
 weighting the activity to a function and the functions to a business, the weighting determined by importance to the business;    calculating benchmarks for the business;    assessing and weighting risk factors to quantify risk;    determining performance of the business against the benchmarks by factoring together measures of the specific drivers, thereby assessing its potential.    
     
     
         7 . Computer-executable process steps in a computer-readable format, operable to control a computer and perform the steps of: 
 selecting an activity;    collecting data relevant to the activity;    selecting a driver;    selecting a set of metrics corresponding to the activity and the driver;    applying the metrics to the data to produce metric values;    determining a key business indicator (KBI) as a function of the metrics, the activity and the driver;    calculating a KBI value as a function of the metric values;    determining a performance rating as a function of the KPI value.    
     
     
         8 . The computer-executable process steps of  claim 7  wherein the activity is selected from the group consisting of: 
 research,    portfolio management,    sales,    client service,    management,    treasury,    compliance,    controller    operations, and,    information technology.    
     
     
         9 . The computer-executable process steps of  claim 7  wherein the data is collected from operating systems, databases, interviews and financial records.  
     
     
         10 . The computer-executable process steps of  claim 7  wherein the driver is selected from the group consisting of: 
 productivity,    profitability,    scalability,    alpha generation, and    operational risk.    
     
     
         11 . The computer-executable process steps of  claim 7  further comprising: 
 providing a mapped workflow for the activity;    comparing the mapped workflow -to a best practice to obtain a variation;    scoring the variation to obtain a variation score;    calculating a best practice score for the activity as a function of the variation score.    
     
     
         12 . A method for evaluating performance comprising: 
 collecting data;    applying a first set of mathematical functions to calculate operational performance and obtain a performance rating;    applying a second set of mathematical functions to assess and weigh risk factors to obtain an enterprise risk rating;    applying a third set of mathematical functions to the data to produce a consistency potential rating;    
     
     
         13 . The method of  claim 12  wherein the step of applying a first set of mathematical functions to calculate operational performance benchmarks (OPBs) and obtain a performance rating further comprises: 
 computing an activity key business indicator (KBIs),    weighting the activity KBI to a function;    computing a function KBI according to the activity KBI;    calculating the performance rating according to the function KBI.    
     
     
         14 . The method of  claim 12  wherein the step of applying a second set of mathematical functions to assess and weigh risk factors to obtain an enterprise risk rating further comprises: 
 comparing an activity workflow mapping to a best practice to obtain a workflow mapping comparison;    corresponding the activity workflow to a function;    weighting the function in relation to the business to obtain a function weighting;    assessing risk of the function according to the workflow mapping comparison and the function weighting.