The 'E' Rating
Strategic Milestone
Company financial performance can now be significantly accelerated and translated to share value because for the first time, the diverse measures of organisational capability, management performance tracking and investor interest have been converged into a single numeric index, the 'E' Rating, representing and bringing into focus the potential of a business to make money.
Application of this index and its supporting know-how forges a new and unique partnership between Investor Capital, Business Strategy and Human Capital in the wealth creating process, thereby unlocking unrealised potential in company performance and share value.
The 'E' Rating is probably one of the most significant and strategic measures of company performance in recent times. It is both unique and compelling as it combines individual, team and organisational performance criteria into a cohesive measure that can be directly linked to financial results.
It is a measure of a business's robustness and sustainability based on the extent to which the 'Entrepreneurial Drivers' that ensure sustainable growth are active within the business. Successively graduated from 1 to 5, it provides investors, executives and entrepreneurs, with real-time information and confirmation that their businesses:
- Are creating new opportunities fast enough.
- Are gaining momentum.
- Are delivering their potential.
- Have the capacity to compete into the future.
- Are growing in value.
How it works
Leaders and their teams at various levels are required to participate in the measurement exercise. Combining the scores of all five 'Entrepreneurial Drivers' gives the Competitive Capacity Index of a business which, if it exceeds a score of 0,725 on a scale of 1, earns an 'E' Rating that means its sustainability is guaranteed. However, a company can be assured of achieving an unassailable competitive advantage when it acquires an 'E' Rating of 3 and above, out of 5.
A score of below 0,725 indicates performance capacity deficits that are currently impeding financial results.
View Concept
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Measuring the 'Profit Per Person Cost' ratio keeps control over how well the 'Entrepreneurial Drivers' are being applied in the business to accelerate wealth creation by:
- Driving revenue up.
- Driving costs down.
