Improving Strategic Decision-Making in Private Equity with Simulation

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Overview

Sapien partnered with SIG, a leading strategic intelligence firm to support a Private Equity business facing a significant portfolio decision. The company was evaluating the value of a $30 million asset, and our mission was to employ our cutting-edge simulation technology to enhance their decision-making process.

Challenge

In the Private Equity sector, strategic decision-making can be complex and fraught with risk, particularly when significant assets are at stake. Our challenge was to harness high-grade intelligence and the company's unique context to improve their decision-making process.

Solution


We developed a ProtoChoice simulation, a tool designed to enable the company to construct and test various option sets for their strategic decision. We utilized our intelligence partner's research findings, which offered a comprehensive understanding of the company's unique context and improved the decision process.

The ProtoChoice system guided decision-makers through four critical phases:

Explore the systemic drivers: Decision-makers explored the salient drivers based on the latest research, shaping the underlying simulation model and its effects.



Build the baseline scenario: The team responded to a series of questions to establish a baseline scenario. This captured both the expected impacts on their portfolio and the level of confidence they had in their assumptions.

Evaluate the possible outcomes: The group evaluated their assessment results against the available intelligence which tested assumptions, surfaced potential cognitive biases, and revealed the presence of 'noise' – variability in judgment across decision-makers that could influence the decision.

Create the strategic playbook: Armed with this new knowledge, the group formulated a final decision with actions to address each future outcome.

Outcome

Our transformative approach to executive education paid off significantly. The School reported that students demonstrated a clearer understanding of course themes and outcomes, leading to more insightful discussions and improved application of concepts.

The Resilience Score offered a practical measure of decision-making quality, aiding students in refining their strategic approach. The bonus round equipped them with a futuristic perspective, preparing them for unforeseen crises.

The project served as a testament to our potential to elevate executive education, enabling students to apply theoretical concepts to real-world crises, thereby producing leaders who are ready to navigate the complexities of global markets and institutions.

Experiences in Action

Experiences in Action

Case Study 1

Transforming Strategic Planning at a Telecom and Mass Media Giant

Sapien collaborated with one of the leading telecom and mass media companies, commanding a market cap of US$29 billion and employing over 23,000 professionals. Our task was to revolutionize their strategic planning process by introducing an advanced simulation platform. The audience was the company's top 120 senior executives and their most influential leaders. The main theme was to strengthen strategy formulation and execution.

Experiences in Action

Case Study 2

Enhancing Executive Education at a Top US Business School

Sapien was approached by a top 10 US University Business School known for its rigorous Executive MBA program. The challenge was to bridge the gap between real-world business challenges brought on by the early days of the COVID-19 pandemic and the academic themes and outcomes of their Global Markets and Institutions course.

Experiences in Action

Case Study 3

Igniting Strategic Transformation at a Fortune 50 Technology Company

Sapien partnered with a $210 billion Fortune 50 technology company that employs over 83,000 individuals. The task at hand was to catalyze an enterprise-wide strategic transformation using our cutting-edge simulation platform. The company was seeking to transition from a hardware sales model to a recurring revenue software business model.

Experiences in Action

Case Study 4

Elevating Stakeholder Engagement at a Virtual Healthcare Conference

Sapien joined forces with a $28 billion top-tier healthcare technology provider to revamp the stakeholder engagement at their virtual conference. The conference was for an expected audience of over 500 stakeholders. Our brief was to provide a compelling, engaging, and thought-provoking simulation experience that would highlight the client's position as a thought leader in the healthcare technology space and emphasize their commitment to population health initiatives.