Introduction: Thriving business Momentum!

A study of strategy performance and efficiency

Introduction

Until now, I have based my articles on my own experience. This time, this article is more dense and a very analytical approach to strategy design and I thank in advance those of you who will manage to read it through and give feedback.

Every time I worked for a large company or organization, I was always impressed by the feeling that there is something in motion there, driven by strong underlying forces I like to compare to some kind of kinetic energy. Stepping back while trying to get the global picture, and meanwhile documenting and reading extensively about it, I found there is a physics principle that describes it and that is also used in investment strategies. This strange effect is called the Momentum, or strength of a system in motion. All along the next pages, we will be going through a broad set of indicators and how to use them in a strategic focus. In other words, we will now use the concept of inertia to describe how human behaviors affect markets and organizations, under the assumption that human behavior is a major factor of markets and organizations under-effectiveness.

This study will be released in a series of 14 articles over 1 week and will also be made available for the reader to download the full version in pdf. Ensure you press follow to be informed of every new publication.

 1 – Basic Principles to understand Momentum

• Strength of movement of a body or system
• Momentum, an investment strategy

2 - A study of strategy performance

• Market Performance
• Revenue Performance and Revenue Performance ratio
• Operational Performance and Operational Performance ratio
• Financial Performance and Financial Performance ratio

3 – A study of strategy efficiency (coming soon)

• Market efficiency

• Revenue efficiency

• Operational efficiency

• Financial Efficiency

  4 – Strengths and limits of the Momentum approach (coming soon)

• Optimize reach on potentials
• Alternative use of Rate of Change (RoC)

Conclusions (coming soon)

>>Next: Strength of movement>>

<<Back to summary<<

Frederic Hugo Hoffmann, MBA

Frédéric specialized in initiating and developing new activities within organizations, leading organizational change and innovation.

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