Strategic Thought Transformation - The IIPM Think Tank

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cycle, competitive position, business
competencies & capabilities etc). Thus,
while the WTF Tally provides the current
position of wealth after evaluating
the market determined value of the
MetaSBU’s capabilities & competencies,
FEET provides the present value
of all future returns expected due to
these current capabilities and competencies.
The persuasive combination of
WTF Tally (showing present situation)
& FEET (showing future situation) is
utilized later on in the m-PIPE Matrix
to provide the various strategic orientations
for any MetaSBU.
The PAWS, CLAWS & FEET are principal
to the basis of MetaSBU analysis.
These three consolidate hundreds of
factors that are analyzed to forecast
future positions. As mentioned before,
the FEET factor is reached after
undertaking various factor analysis
routines, game theory exercises and
other industry-specific, company-specific
and MetaSBU-specific research.
Unlike other portfolio models where
simple management feedback was
enough in giving weights to factors
like competitive position or business
strengths etc, the forecasting system in
these constructs uses highly technical
tools to reach qualitative and quantitative
conclusions that are consolidated
and represented as the Wealth Digress
Body. This kind of a system is miles
ahead of techniques used in other models
that are highly subjective to the
inputs provided by external entities.
The final values that are assigned to
the three factors in the Wealth Digress
Body are not representations of two
or three simplistic factors like relative
market share, market growth rate but
weighted aggregates of sometimes hundreds
of factors that influence business
performance over many periods, and
using system algorithms that cannot be
attempted manually. There is obviously
the well-known tradeoff between speed
of strategic decision making and the
amount of analysis that goes into the
decision making. But then these constructs
are not meant to be undertaken
as slipshod decision support systems
by overexcited managers attempting
sub-primitive and illiterate strategies.
These constructs are meant to be utilized
as the most technically advanced
management audit systems.
However, the Wealth Payback Sculpt
alone cannot provide a comprehensive
analysis. The problem hitting WPS below
the belt is that when viewed in a
standalone manner, the FEET of the
Wealth Digress Body does not display
what is the discounting rate being used
(AIR), and whether this Augment Interest
Rate has been consistent over
the past relevant periods or has the
same been correctly changed. What
this means is that when one sees a
MetaSBU with extremely positive FEET
wealth potentials, one cannot really
give details on whether the Augment
Interest Rate being used by the model
is the correct figure. TC Units (or management
in some cases) might have
There is the wellknown
trade-off
between speed of
strategic decision
making & the
amount of analysis
that goes into it
used extremely low discounting
rates to make the MetaSBU appear
a highly profitable proposition. The
m-PIPE Matrix is the model that
utilizes WPS to analyze MetaSBUs
over time periods in order to show
the correctness of the discounting
rates being used and effectiveness
of past strategies. The next paper
in this series, in the next issue of
Strategic Innovators, analyzes not
only the m-PIPE Matrix, but also
various competitive strategies that
can optimally affect any business
industry space.
An IIPM Intelligence Unit Publication STRATEGIC INNOVATORS 51