Why use Strategic Focus?

Gives a real understanding of a set of financials.

Strategic Focus gives a real understanding of a set of financials - yours or your competitors. It shows where the profits and cash flows are, and calculates if the profits and cash were produced efficiently.

It tracks profit and cash flows through the income statement (profit and loss) and balance sheet. You can view the relationship of operational cash, free cash flow and net cash.

Ability to obtain a business valuation

Strategic Focus has the ability to quickly and effectively calculate the value of a business.

There is a link between financial performance and the implementation of the strategic plan. You can evaluate alternative strategies for their impact on business value. A plan that has not been effectively analyzed will have unknown impact on the business valuation. A well chosen strategic plan can be expected to favorably affect the business valuation or, if a listed company, the stock market performance.

Goal-seeking capability helps the user to modify strategies with a view to achieving favourable outcomes.

Example: Strategic Focus has assessed that the strategy of selling our products into Canada is not going to add value to the business. The goal-seeking capability is then used to suggest changes to this strategy to achieve the desired outcome. It ranks these by sensitivity.

There is a link between financial performance and the implementation of the strategic plan.

A plan that has not been effectively analyzed will have unknown impact on the business valuation. A well chosen strategic plan can be expected to avourably affect the business valuation or, if a listed company, the stock market performance.

Management evaluates the suggestions offered by Strategic Focus to see which are achievable in the real world, and the appropriate ones implemented.

Performance monitoring provides a lead business indicator.

Strategic Focus can be used for monthly monitoring of actual performance against planned performance at a macro level.

This provides the user with a lead indicator which prompts the making of adjustments to achieve the strategic plan.

After a couple of months the user can see if the business is going to achieve the strategic plan. If not they can make changes. This is better than waiting for the full year results and only then seeing that the strategic plan has not been met.

Achieves comprehensive analysis of financial statements for this company and its competitors.

Understand the valuation gap.

The owners want their business to be worth $15m, but using Strategic Focus they calculate that the business is worth only $10m.

The software helps them understand the magnitude of the valuation gap and the goal-seeking features can be used to test alternative strategies to close the gap.

Easy to prepare regular financial health assessment reports.

Most businesses produce financial monitoring reports on a regular basis. They are time consuming to prepare regularly. In Strategic Focus it is easy.

These provide the benefit of reporting those areas of financial performance that require monitoring.

Works out the financial implications of the strategic plan.

Most businesses regularly review current strategies to answer the question: How are we going to change the business we are in to increase its value?'

The list of strategies that the company is considering is known as the company’s strategic plan. The benefit of using Strategic Focus to review and help formulate the strategic plan is that it articulates the financial consequences. It helps management to select the most promising financial investments.

Monitor variances from budget.

Assists you to be pro-active in controlling the financial outcomes for the entity. Be alerted to variances from the budget so that timely corrective action can be taken. Cater for changing business conditions. Strategic Focus monitors performance and helps you to know in advance if corrective actions are required.

Be productive immediately.

Avoid the agony and cost of a lengthy implementation and training schedule. Easily installed and operated with comprehensive accompanying documentation. Install the software and start analyzing and understanding the financials.

Incorporates Economic Value Added and Free Cash Flow techniques.