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Portfolio Analysis: Igniting a long-term spirit in a short-term world (XXXIII). Our own approach to portfolio analysis. An abstraction.

Today´s post is the penultimate of our saga “Portfolio Analysis: Igniting a long-term spirit in a short-term world”. We expect to finish this epic by next Friday. So we have almost accomplished our outline.

The “Trio of Masks”, from the collection “Pandemic Memories”. Each painting is 8 inches x 10 inches in size. Made with love on Strathmore 500 series watercolor paper. These beauties are being exhibited at Izalco Art Gallery until December 27h, 2021. The gallery is located on the 2nd. level of Onili Café, 87 Avenida Norte #738, Col. Escalón, San Salvador. More than 60 other artists have hung their miniature paintings and are waiting for your support. Gift art during these holidays! Contact Ms. Mely Porras de Arrieta, the director of the Izalco Art Gallery.

Eleonora Escalante Value proposition.

We have described many times what integral strategy is, so I won´t repeat it today. Find below two of the slides coming from our corporate strategy firm presentation.

Our original abstraction for corporate strategy is aligned to the premise of integral strategy.

We may produce our own tailor-made corporate strategy framework, using the premises of the oldies that we have studied over the last three months (the BCG growth-share matrix, the General Electric portfolio model, the Shell Directional Policy Matrix, the ADL strategic condition matrix, the Abell and Hammond 3×3 investment opportunity matrix, etc.). But that is not enough.  We are responsible for the Design-based research (DBR) of it, under the new premises of integral corporate strategy for the new generations. Nowadays, in the context of performing a good DBR, and in the middle of the imposition of the data-driven technocratic approach of living through the abundance of technological advancement, including the NAIQIs (Nanotechnologies, Artificial Intelligence, Quantum Supremacy, and the Internet); it is our obligation as corporate strategy advisors to begin to include the integral premises of our humanity, inside every single framework that we utilize.

The evolution and re-calibration of corporate strategy. An integral strategy that has permeated the mindsets of those who make decisions in any corporation (public or private), is someone that will dedicate all his or her life, not just to hire the correct type of corporate strategists; but will dedicate the resources to update and re-calibrate the current existing frameworks used for decision making. The re-calibration of corporate strategy must start at the top global business schools and economics, and then it must be rolled out to every single professor that teaches corporate strategy and economics. All of us who hold an MBA, or a Doctorate in Business Administration will require an upgrade of our corporate strategy premises. And each consulting house company will require to adjust the gears of their boat, not just to comply with the new integral frameworks, but also to remake our consulting industry.

Evolving our corporate strategy in our industry. When all the top board of directors consulting and strategy practitioners will accept the premises of integral strategy with the validation from the top members of academia, then the choir of consulting houses as McKinsey, Boston Consulting Group, Deloitte, Bain & Company, Price Waterhouse Coopers, Ernest & Young, etc; will begin a radical transformation of problem-solving.

The Consulting Industry is diverse but in the strategy field… In the field of strategy (corporate, business, and functional strategy) the segmentation of the strategic consulting industry is well known as explained below:

Consulting Industry players segmentation.

Any radical transformation of the strategic consulting industry must begin with the MBB top tier 1: McKinsey, Bain, and BCG. Only when the top three will decide to change, then everything will come into place.

Eleonora Escalante Strategy Approach in Corporate Strategy.

The key for our corporate strategy approach is to include 5 groups or segments of factors that have multiple or interconnected foundations in the philosophy of “self-renewal” and wellbeing for humanity and every single creation of God on the planet.

These 5 groups of factors must be included at an internal level (measured for each SBU). Also, each of these new groups of factors must be included at an external level. Please remember that internal factors are related to those which, to a large extent, are controllable by the firm, and these are not trivial, but these factors are so important as the economic and financial that was previously established in the oldies matrixes from the 1980s. The external factors are essentially uncontrollable by the SBUs. These basic characteristics belong to the industry and competitive structure in which the SBU operates. Again, our 5 segments of factors may be applied where the SBU industry requires it and can be applied.

The factors to apply to depend on the SBU, and its respective industry. All these new factors are so significant as the economic/financial that traditionally have been utilized for decades.

The new 5 groups of segments of factors (internally designed for each SBU, and externally designed for each SBU Industry), which have to be included in all portfolio analysis matrixes additionally to the traditional economic and financial factors, are classified by us as follows:

  1. Human Capital Development (Life long-learning) Factors
  2. Social and Community Factors
  3. Ecologic and Environment Protection/mitigation Factors
  4. Family Heritage Factors
  5. Integrity and Ethics Factors

The definition of each factor per axis (X-axis or Y-axis) depends very much on each SBU, and each SBU industry. And by adding all these human factors, our composite calculation of the main economic and financial data criteria will stop being the trigger for decision making. From now and then, we will enrich and become integral in our business decisions. We will start to use composite measures that are integrally design-based researched. And once we change the X-Axis (internal factors), and the Y-axis (external factors) assessment and calculation, the whole tailor-made portfolio matrix will change completely. Including the tags. The whole corporate strategy matrix will be transformed completely. And we won´t see anymore these factors as a side dish, but at the core of our concepts and frameworks.

 Why did we choose the Lifehouse song last Friday? The song “You and Me” captivated us not just because of the lyrics, which I write below:

“’Cause it’s you and me
And all of the people with nothing to do
Nothing to prove
And it’s you and me
And all of the people
And I don’t know why
I can’t keep my eyes off of you”

This song captivated us because it shows love. How delightful is it for a woman to feel loved exclusively and in return from her boyfriend or partner? It is remarkable sweet to sense the passion in that quality aura. Nothing better than that.

Our song of today is not one, but five. As our five new groups of factors to include in corporate strategy matrixes. Five grandes composers and interpreters from Latinoamerica: Diego Torres (Argentina), Fonseca (Colombia), Fonsi (Puerto Rico), Carlos Vives (Colombia) and Juan Luis Guerra (Puerto Rico). I couldn´t end this saga without our sticky, adorable, unique, tribal, ancestral Latin steamy rhythms. I hope you can enjoy our Latin repertoire.

Color Esperanza
La Tierra del Olvido
Mi bendición

This publication has been uploaded on Monday, tomorrow I have to go to my last physiotherapy doctor’s appointment, to check how the recovery of my foot is striving. Thank you for reading to me.  One more publication and we will finish. Thank you so much.  

A new saga “Bees at Work” is coming on January 4th, 2022.

Disclaimer: Illustrations in Watercolor are painted by Eleonora Escalante. Other types of illustrations or videos (which are not mine) are used for educational purposes ONLY. Nevertheless, the majority of the pictures, images, or videos shown on this blog are not mine. I do not own any of the lovely photos or images posted unless otherwise stated.

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