B-I-I scores of 80 to 100 reflect good-to-excellent performance; scores under 50 should cause company co-managers great concern and signal the need for immediate strategy improvement.
Below are some important aspects of how the Best-in-Industry Scores for a given year are calculated: The highest possible Best-in-Industry (B-I-I) Score is 100, earned only if a company is the best performer on EPS (with an EPS equal to or above the target), the best performer on ROE (with an ROE of at least 15%), the best performer on stock price (with a stock price equal to or above the yearly target), and the best performer on image rating (with an image rating of at least 70) and also has an A credit rating. scores can range as high as 120, it is common for the Overall Scores of the very best-performing companies to be greater than 100.
The Annual Overall Scores for the various companies are a weighted average of their respective annual I. scores and the annual B-I-I scores, while the Game-to-Date Overall Scores are a weighted average of the game-to-date I. Companies with overall game-to-date scores of 80-89 should get a B– to a B (or higher if there are no companies with scores of 90 or more).
The BSG scoring methodology, introduced in 2004 and now used for thousands of participants, has an exceptionally good, time-tested track record.Again, the performance scores are based on the weights/points assigned to each of the 5 performance measures, with the sum of the points on the 5 measures adding to 100.The Best-in-Industry Standard entails assigning the best-performing company the highest number of points and then assigning each remaining company a lesser number of points according to what percentage of the leader’s performance they were able to achieve.Using the assigned weights (or corresponding number of points out of 100), each company’s performance on the 5 measures is tracked annually and company performance scores are calculated from two different angles: the “investor expectations” standard and the “best-in-industry” standard.The scoring procedures described below may seem more complicated than they really are because we are providing full details and explanations of how the scoring works—in truth a company’s overall performance cannot be fairly or accurately gauged by “keeping it simple” and looking at just a couple of performance measures.