You refer to the "value proposition;" how do you define it?
Quantifying the value proposition means understanding your customer's business and providing solutions that will differentiate them from their competition, provide the critical knowledge points of the markets they serve and provide flexibility and efficiencies not previously experienced. The key is understanding the six ways to create value and the 22 different value propositions. And then identifying and measuring the critical business metrics (financial, process, operational, etc.), that is, pre- and post-implementation of your solution, and the key differences between your solution and the competitive solution.
 

1. NorthPoint's knowledge databases and unique tools.  We created them; they are a proven approach; and they are the only tool we know of that uses deep analysis of more than 400 - 600 critical factors and measures against a benchmark born of accurate, historical data.  They provide the only comprehensive guidance in a market sector where literally no books have been written on how to succeed.
2. We provide a new set of metrics to thoroughly measure and manage risk, knowledge and value.  These metrics have been created out of both historic and current data.  And as far as we know, we are the first to quantify the success metrics of the soft sciences – marketing and management.
3. We provide a solution for managing the inter-relationships between management, marketing and technology, and between a company and the industry at large.  Our research disclosed that much of the failure, especially in the growth stages, originates from misjudging or mismanaging these inter-relationships.

Does your competition use similar tools or technology?
A few use tools that aid in the development of plans or company valuations and others use tools that benchmark development and project management performance.  We believe NorthPoint is the only firm that uses large knowledge databases that contain all the weighted, critical factors of "successful company" performance, from operating ratios and other comparables, to technology and operational metrics.  We believe this fills a critical need.
 

How often do you update your products and which factors change the most?
We review our tools on a quarterly basis and, with the exception of changing the weightings periodically, we update on an annual basis.

How long does it take to do a risk assessment of a company and what do you do?
The process takes about three weeks, including the management summary report.  Most of our research is done prior to meeting with the company.  On site, we interview the key executives responsible for marketing, operations, finance and development/ engineering.  The process takes about 120 to 150 hours with most of the work done at NorthPoint, with minimal disruption to the company.

Is your customer involved in the assessment?
Yes, we encourage participation and believe our review provides valuable feedback to company executives.  We also offer a self-assessment where NorthPoint, using our tools, facilitates a team Risk or Knowledge Assessment.  We also offer "facilitated" self-assessments where our client works directly with us to complete an evaluation.

Do you make your report available to a company being assessed if the evaluation is being done on behalf of your client?
Yes, with the prior permission of our client.

How do you know the data going into the software is accurate; after all, garbage in will give you garbage out?
Our client companies work directly with us to enter data into the software. They are the experts on their own companies, and they make sure we get complete and accurate data.  In engagements where we assess a vendor on behalf of our client, however, we are required to ensure proof of point.

How do you price your products and services?
Our services are value priced as well as offered on daily rates.  The software ranges from $30 - 80K, with tier-pricing for multiples and discounts for site licenses.  This fee incorporates training; and maintenance and support services are offered.

What kind of output does the assessed company receive?
Each of the products produce early warning metrics regarding the health of an investment.  A high level and easy to interpret management summary that identifies the NorthPoint Success and Risk Indices™, "Best in Class" vs. Actual Performance, Investment Return Projection, a reforecast of the Income Statement, the identification of strengths and weaknesses in each of the areas of marketing, management and technology, and a set of conclusions and recommendations to leverage and strengthen a company and its products and increase its long-term economic value.

This is the initial assessment output.  Post-assessment, the NorthPoint products produce an RVS (Risk-to-Value Steps) Report.  This is a weighted success factors and prioritized action items required to achieve high performance outcomes.

Do you come back to the company to help them implement the recommendations?
Yes, the NorthPoint process includes a post-assessment meeting called an RVS (Risk-to-Value Steps) Workshop.  The session is intended to review the action items with key team members, assign individuals responsible for each action item, define closure criteria and target dates.  In addition, we work with our clients to prepare an executive presentation to communicate to executive management the results of the Risk Assessment and the team’s commitment to implement the RVS Action Plan.  And we also perform checkpoint updates to evaluate progress, reflect both internal and external change and to track progress on a NorthPoint curve.

Can you point to the specifics of where and how you have made the difference using your process and your new metrics?
We operate under strict non-disclosure agreements but we feel that our business and academic testimonials represent a good mix of our services and offerings.  However, we have a number of clients who were kind enough to be quoted in our customer testimonials, and they have agreed to serve as references to prospective clients and the media.

Can you prove that the Risk Index™ works?
We built the index using data taken over an eight-year period.  The initial data reflected the actual performance of 800 venture capital-backed companies and since the early nineties, we have added many new companies, products and projects.  Our statistical correlation's prove the Index and were third-party certified by Professor Varghese George, Ph.D. of Rutgers University, as well as other industry leaders.

How do you make sure customers implement your advice?
Implementation is totally in the control of the company executives.  We have many situations where we are retained to work with a client through implementation.  In all circumstances, we encourage 90 – 120 day re-assessments to ensure that knowledge and risk are being properly managed and that the company's Risk Index is sliding downward and Success Index is headed up.

Have any of your client companies failed?
Only a few companies – they either came to us too late or were unable to secure venture funding.  We follow up on many of our clients and, in some cases, we are on retainer so that we go through the process more than once to measure progress.  In those cases, we have been very pleased to watch those companies start to achieve their goals.

Do your clients always take the advice based on a NorthPoint assessment?
Regrettably, a few of our clients have "selectively" implemented our recommendations and this ultimately yielded failure.  As an example, a client will quickly implement the things that they agree with and those that are easy to make happen.  They might ignore the actions that they don’t agree with or are financial painful to make happen, and may ignore those actions that are politically difficult to implement.  We have learned to openly discuss this with prospective clients and to encourage post-assessment communication to ensure the RVS (Risk- to-Value Steps) Action Plan is implemented based on the priorities identified in the NorthPoint deliverable.  And fortunately for NorthPoint, however, these clients today are willing to provide references to our clients regarding these management errors and the predictive value of the model’s outputs.

Can your Risk or Knowledge Assessment Process improve the odds of success?
We believe that NorthPoint's knowledge, risk and value metrics are critical to successful project management and will emerge as the new, crucial performance barometers.