The Management Grading System™ is comprised of three phases: Diagnostic, Therapeutic and Quarterly Benchmarking.

The Diagnostic Phase uses various proprietary metrics to form a grade for the company or industry: 1. The Velocity of Cash Index™ is a factor of the number of days it takes to turn a sale into cash; and 2. The Velocity of Capital Index™ utilizes operating earnings as a percent of total invested capital (total long term debt plus shareholders’ equity). The final grade is generally biased toward the Velocity of Cash Index.

Companies that do both well have a high Velocity of Information Index™ High VOI Index companies get a high ratio of market value to sales.

The VOI Index shows what has never been demonstrated before: how effectively a company uses its information resources. In an era when the cost of information is in a freefall, only those companies that most rapidly substitute information for other factor inputs – like land, labor, and capital – grow and prosper. The higher the VOI Index, the better.