8W8 Global Business Builders developed in collaboration with more than 70 entrepreneurs, executives, board members, investors, consultants, and academics the value-driver-based CovQ (Compound Value Creator Quotient) assessment system, or put simply: ‘the Corporate IQ of a Company,’ and is now releasing the CovQ Benchmarks Insights 2024. All companies included took the CovQ assessments with multiple participants of their management teams. Executive team alignment levels are measured as well and are part of the dataset.
Highlights
To have a 25 % edge over the average of all companies, executive team alignment is extremely important and needs to be almost perfect (93%).
The massive opportunity: Strategy Operations. The by far weakest segment ‘CREATES’ in almost all companies of all sizes and stages, comes in at a CovQ Score of 58 with a CovQ Factor of Exec Alignment of 76. The lowest score with among the highest alignment levels means ‘We agree that we are not great at it, which is a problem’’ hence provides the most impactful opportunity to outperform. Even with a benchmark upside goal of plus 25 %, there is an additional 38 % upside to get to perfection.
To dive into two CovQ Value Drivers of the CREATES segment:
Strategy Execution Tools: CovQ Score 55 CovQ Factor of Exec Alignment 77
Lack of Clarity of Strategy Objectives together with Team and Individual Goals:
CovQ Score 57 CovQ Factor of Exec Alignment 78
Additional opportunities for significant value creation upside comprise:
Integrated Marketing: CovQ Score 52, CovQ Factor of Exec Alignment 78
Effective Innovation Process: CovQ Score, 56 CovQ Factor of Exec Alignment 74
CovQ is the world’s first assessment system that enables companies, their founders, CEOs and executives, board members, investors, consulting and advisory firms to discover a firm’s intelligence and quality concerning creating value, compounding it, identifying the most important and mission-critical value drivers that must be prioritized and developed further. In comparison, more than 60 million people took the Myers-Briggs personality test (MBTI Myers-Briggs Type Indicator). The CovQ assessment is a module of the CovQ Value Creation OS encompassing the CovQ assessment system, a framework, method, knowledge, and software for value creation and strategy operations. CovQ value drivers are scored by the management teams on a scale from 10 (insufficient) to 100 (outstanding).
The CovQ Benchmark Insights 2024 report shows where companies should focus on and score 25 % more advanced than the average as well as where management teams excel in alignment or struggle with misalignment and therefore provide an even better opportunity to build a competitive advantage and edge. Practically speaking, companies could also benchmark fictively certain industries, competitors, or acquisition targets.
In Q4/23 Gartner Inc., the world market leader in IT market research and knowledge services, released the strategy and operating model below pointing out the intimate linkage between the dynamic elements around capabilities and deficits including feedback loops. The CovQ Value Creation OS provides exactly such an infrastructure and enables the determination of capabilities and deficits via the CovQ assessment system and the deployment of the findings and actions throughout an organization.
The CovQ ‘25% Advanced’ breakdown is as follows:
CovQ Score + 25 % Benchmark
CovQ Factor of Exec Alignment + 25 % Benchmark
DEEP – expressing qualities around substance, sustainability, long-term, broader steering
IMPACT – expressing qualities around the right set of tactical and operational activities making a positive and strategic impact
CREATES – rallying the required teams, using tools and systems to implement and control strategy execution and reporting
VALUE – communicating and sharing information proactively, constantly, consistently to all relevant stakeholders
BUILDING – leveraging specialists, experts, peers and self-development
Key Takeaways
To have a 25 % edge over the average company, executive team alignment is extremely important and needs to be almost perfect (93%).
In particular, in remote and hybrid environments executive team alignment is even more crucial.
To understand trends, shortcomings, and strengths executive team alignment needs to be measured in regular intervals.
The massive opportunity: Strategy Operations. The by far weakest segment ‘Creates’ comes in at a CovQ Score of 58 with a CovQ Factor of Exec Alignment of 76. The lowest score with among the highest alignment levels means ‘We agree that we have a problem’ hence provides the most impactful opportunity to outperform. Even with a benchmark upside goal of plus 25 %, there is an additional 38 % upside to get to perfection.
To dive into two associated CovQ Value Drivers:
Strategy Execution Tools: CovQ Score 55 CovQ Factor of Exec Alignment 77
Lack of Clarity of Strategy Objectives together with Team and Individual Goals:
CovQ Score 57 CovQ Factor of Exec Alignment 78
Additional value drivers for significant value creation upside comprise for instance:
Integrated Marketing: CovQ Score 52, CovQ Factor of Exec Alignment 78
Effective Innovation Process: CovQ Score, 56 CovQ Factor of Exec Alignment 74
General Observations:
Overall analyze the CovQ score and how it compares to the targeted benchmark: Did your company outperform, underperform, or align with the industry average?
Capabilities and deficits identified through the DEEP IMPACT CREATES VALUE BUILDING framework: Highlight the key areas where your company excelled and where it could improve.
Key trends and patterns: Did you observe any consistent patterns across different value drivers or functions?
Deploy Actionable Insights:
Specific areas for improvement: Based on the benchmarking, identify the most critical areas where your company can focus its efforts to improve its value creation capabilities.
Prioritization and resource allocation: Start to prioritize and allocate resources to address the identified deficits and capitalize on the capabilities.
Metrics and tracking: Leverage concrete metrics to track progress over time and ensure accountability for implementing the recommendations.
Competitive Differentiation:
Unique value propositions: How can your company leverage its capabilities to differentiate itself from competitors and obtain desired CovQ scores over time?
Lessons learned from industry leaders: Identify specific best practices from companies that you assume would score higher in your benchmarking considerations.
Future opportunities: Based on the CovQ insights, deploy potential future growth strategies supported by advanced integrated marketing and effective innovation management.
Companies or business units and functions with specific objectives can develop customized, tailormade value drivers by utilizing CovQ+ in addition to CovQ Core.
For more information please feel free to get in touch at value [@] 8W8.com, follow us on social (Linkedin, Twitter, Instagram) and check out our comprehensive testimonials.
