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Why a Data-Driven and Unbiased Approach Is Best for Business Strategy

Sep 13, 2022 by ITR Economics 0 Comments
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Why A Data-driven & Unbiased Approach Is Best For Business Strategy  blog (1)

Creating your business strategy is no easy task. So much of your time, effort, and resources go into it, and you don’t want to waste any of that by doing it the wrong way. In fact, strategic planning without accurate data behind it is pointless. But accurate data is where the experts at ITR Economics come in, helping you make your strategy the best it can be. Let’s take a look at how ITR Economics’ unique methodology can provide your company with the best business strategy.

Learn More About Data-driven Business Strategy at our Workshop

 

Leading Indicator Inputs

Over the years, ITR Economics has refined its unique use of leading indicators to provide unsurpassed results. An advantage of working with ITR is that the firm tracks more than 10,000 data series in its database to support the analysis used in its forecasts.

From big-picture forecasts like Gross Domestic Product and Industrial Production to individual company sales forecasts, ITR has the data to give you the right insights for your business and industry. This in turn gives you an accurate view of what’s to come, with sufficient time to prepare for those changes.

Rate-of-Change Analysis

Rate-of-change analysis is one of ITR Economics’ tools for seeing the future. A rate-of-change is the ratio that compares a data series during a specified time period to the data series during that same time period from one year ago. An example would be a comparison between Q4 2022 sales data and Q4 2021 sales data.

Rates-of-change show the percent change for the specified time period and accurately indicate whether activity levels are cyclically rising or falling when compared to the same time period one year ago. ITR Economics most commonly uses 1/12, 3/12, and 12/12 rate-of-change analyses, which respectively represent the year-over-year percent changes for a specific month of data, a three-month period of data, or a 12-month period. ITR also provides a helpful guide for calculating rates-of-change yourself.

Four-Phase Business Cycle

ITR Economics uses the rates-of-change to identify positions in a unique four-phase business cycle. Below is a look at the ITR Economics business cycle, with its four phases:

  • Phase A: Recovery

  • Phase B: Accelerating Growth

  • Phase C: Slowing Growth

  • Phase D: Recession



    4 Phase Business Cycle

Using the data to know where your company is in the business cycle will be essential to helping your company make the right decisions at the right time.

 

How Does ITR Economics’ Methodology Help Your Strategic Planning?

With the use of leading indicators, rates-of-change, and Management Objectives™ that specifically correspond to each phase of the business cycle, ITR Economics’ methodology will have you well on your way to forming a better business strategy for your company. In fact, ITR Economics has posted an unparalleled average forecast accuracy of 94.7% at four quarters out since 1985!

ITR Chart

ITR Economics is not just another data provider. The firm doesn’t just share valuable insights and services with clients; its expert economists also take the time to teach each client to implement those insights and best execute their plan.

With a data-driven and unbiased approach to business strategy and strategic planning, ITR takes the emotion out of the decision-making process, empowering you to focus objectively on the data that will lead you on your way to success.


 

Learn our proven 10-step strategic planning process that is market-driven, fosters planning participation, buy-in, accountability, and commitment to the company plan.

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Topics: business planning, business strategy, business economics

ITR Economics
Written by ITR Economics

Since 1948, we have provided business leaders with economic information, insight, analysis, and strategy. ITR Economics is the oldest privately held, continuously operating economic research and consulting firm in the US. With a knowledge base that spans six decades, we have an uncommon understanding of long-term economic trends as well as best practices ahead of changing market conditions. Our reputation is built on accurate, independent, and objective analysis.

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Our approach to running a company was developed to help close one of the biggest gaps in business: the gap between managers and employees. We call our open-book approach The Great Game of Business. What lies at the heart of The Game is a very simple proposition: The best, most efficient, most profitable way to operate a business is to give everybody in the company a voice in saying how the company is run and a stake in the outcome. Let us teach you how to develop a culture of ownership, where employees think, act and feel like owners.