The FPA Process: Pace Car Method
Front End:
Scanning & Nomination
Scanning
We will for the duration of the subscription be maintaining a “scanning” vigil over financial performance. Our tool for this is our “Tower-to-Tower” reports and projections of annual or quarterly performance over comparable years we call Towers (best elevation for viewing).
This analysis is not just for report years, but also for “analytical years”
We look at rolling 12 months recent and projected
We look at the 12 month equation for the business mode.
We add a vital piece called “Headed Here” which is our estimate of what embedded 12-month performance level the company is approaching.
Our expectation that the most telling Tower comparison is Headed Here versus Business Model
Our Criteria for Nominating
Key Results for Targeting
The subscription is handling approximately 6 issues at a time, fewer if there are large issues, more if they are small. Even considering completion and replacement numerous times a year, the time spent on targeting must be spent wisely.
In order to assure that, we have established selection criteria:
Materiality and prospects. Our scanning must indicate to us a reasonable probability that there is room for improvement and that the issue is receptive to our methods and implementation.
Expertise. We are going to form a Trello team for the issue and must have reason to believe that there is the required expertise available to the Team.
Explanatory data. We need to have preliminarily determined that Pace Car requests for good data can be met.
Role of the result. The sum of all Targeting work must in the end be touching on all major drivers of company performance, as determined in the Scanning. Part of making the right selections is seeing to it that this coverage is being built.
Targeting:
Collaboration & Data Analytics