The Shift Index: StructureRecession masking long-term competitive challenges |
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A number of currently available indicators are very successful in measuring today’s cyclical events. However, what indicators should we use to assess the long-term underlying secular trends? The Shift Index is designed to measure the rate of change and magnitude of these long-term forces that spawn the extreme events currently observed in today’s business world.
The Shift Index consists of three indices that quantity the three waves of the Big Shift. The three indices are
- Foundation Index
- Flow Index
- Impact Index
The exhibit below summarizes the three indices of the Shift Index and describes specific indicators included in each index.
About the Shift Index
The inaugural Shift Index from the Center for the Edge focuses on the U.S. economy and U.S. industries, although analysis of industry level data will be covered in a supplement to this report to be issued in fall 2009. Subsequent releases will broaden the Shift Index to a global scope and provide a diagnostic tool to assess performance of individual companies relative to a set of firm-level metrics.
The Numbers
The choice of metrics above was a result of a robust selection process. Many metrics are directional proxies chosen in the absence of ideal alternatives. Some are drawn from secondary data sources and analytical methodologies; some are proprietary. Given the limited data the research team could find or generate to directly and tightly measure the deep changes occurring around us, the authors have not attempted to prove causality although we have not refrained from offering hypotheses regarding potential causal links. In this regard, the authors hope the Shift Index will catalyze research by others to test and refine their findings.
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The Shift Index
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