Use Data to Drive 15x ROI

Dan McLaughlin, Guest Contributor | Principal, Stratalyst Solutions

September 2018

You have a big decision to make. You are certain you are right based on your analysis and years of experience… but are there better alternatives? Have you considered every option? Are there hidden obstacles? Have you asked the right questions of the right people? Have you assessed the company’s stakeholder network? Does your culture support this direction?  Are your people aligned?

Learn Then Decide

Ray Dalio, Founder of Bridgewater Associates, argues, “The two biggest barriers to good decision-making are ego and blind spots. Together, they make it difficult for one to objectively assess circumstances and make the best decisions.” In his book, Principles, Dalio shares learning painstakingly developed over 40 years of searching for what is true and what to do about it in business and in life. As it relates to making good decisions, Dalio says, “Don’t confuse what you wish were true with what is really true.” He goes on to say that good decisions start with the recognition that 1.) The biggest threat to good decision-making is harmful emotions, and 2.) Decision-making is a two-step process (first learning and then deciding).

This is consistent with our experience. True learning requires an open mind and complete objectivity while exploring options. One must recognize that yesterday’s experience may not be today’s reality. Successful decisions are born from objectively seeking other opinions, a performance orientation and willingness to deal with what Dalio calls the ‘Radical Truth’.

You Can’t Manage What You Don’t Know

Is it wise to think you are always right? The answer is yes, if you always are. Our experience would indicate that sub-optimal decisions are made when relying on traditional methods of analysis. Many Leaders base their decisions on their experience, expertise, and review of the Financials, Strategy and Process – all important business levers. However, the key business drivers of Culture, Communication and People are often under-represented in the learning process. Hidden gaps / misalignments are frequently missed, which can have a major impact on the optimization of a given decision.

Data Driven Insights

Leaderscape, our proprietary business transformation process, provides data driven insights to company decision makers to optimize results. Leaderscape is a proven resource that expands leadership capacity to optimize value creation in their company by revealing what’s behind the numbers. Our on-line assessment, generated by company stakeholders, looks at a company’s business operating system (a holistic view of all aspects of a company) and produces a database of current state company Values and Risks.  The output is an Action Roadmap for Leadership and a Cultural Roadmap to implement value-added opportunities and take out risks.

Guaranteed ROI

We have worked with many different types of organizations, including multiple PE firm portfolio companies. As it relates to our PE work, we are typically engaged within the first 90 days of taking over management of a new portfolio company, to supplement the due diligence done prior to purchase. In each case, Leaderscape uncovered multiple data-driven insights, missed during pre-acquisition analysis that expanded management’s capacity to quickly identify significant opportunity areas and act on them. Typical ROI on the Leaderscape investment is 10X – 20X, guaranteed.

Don’t Take Our Word For It

Gartner, a leading global research and advisory company, reviewed Leaderscape for its ability to provide indispensible insights. Gartner reviews said, “Leaderscape is a cutting-edge tool. None of the big 4 (consulting firms) have the in-depth culture, people and leadership pieces in their assessment tools.”

Taking Action

Leaderscape‘s insights-to-action process provides Leaders with a reality based, open-minded and transparent view of their organization, enhancing rapid feedback that enables rapid learning and effective change. Lastly, Leaderscape has a pre-decision review: confirm believability of the data, prioritize actions, review the probability of success and be clear about the degree of difficulty to implement successfully.

Expand your Capacity

See the entire picture of a COMPANY’S business operating system.

  • Insights and Learning
  • Implement with Precision
  • Optimize Decision Making and Results

 

Email us at: privateequity@leaderscapecorp.com to schedule a free consultation.