Welcome!

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The QoX™ (Quality of Execution) Suite is a proprietary system designed to solve one of the biggest challenges in business: connecting the "soft" elements of leadership, culture, and talent to the "hard" financial outcomes that drive enterprise value.

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Its overall purpose is to move beyond subjective assessments and provide leaders and investors with a data-driven, quantifiable framework to measure human capital. The primary outcome is a clear, defensible business case for investing in people, showing not just the cost of underlying risks but the precise financial upside of creating a high-performing organization.

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The 4 Calculators: Purpose, Outcomes & Engagement

 

Launch a calculator by clicking on its name

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1. HR Risk Score (EBITDA Model)

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• Purpose & Outcome: This tool is designed for CHROs and CFOs to conduct an internal health check. It moves beyond a simple audit by assessing the 7 Pillars of HR Performance to produce two key outputs: a weighted HR Risk Score (graded A-F) and a calculated Human Capital Debt. This "debt" is a dollar figure representing the estimated investment required to fix the identified gaps and mitigate potential liabilities.

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• NextArc Engagement: A user can complete the 28-point questionnaire to get a directional score and a preliminary estimate of their Human Capital Debt. However, the true value is unlocked through a NextArc HR Maturity & Scalability Assessment. In this engagement, our experts validate each input through interviews and data analysis, providing an investment-grade report that can be taken to the board or an investment committee with confidence.​

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HR Risk Score (ARR Model)

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2. The Investor Risk Model

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• Purpose & Outcome: This is a pre-investment due diligence tool for PE firms and corporate development teams. It's the human capital counterpoint to a financial Quality of Earnings (QoE) report. It assesses the target company's leader, leadership team, and HR platform to produce an Investment Readiness Score (graded A-F) and a Human Capital Debt figure that should be considered in the valuation and post-close value creation plan.

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• NextArc Engagement: This model is designed to be used by an investor to quickly flag potential risks based on initial observations. The crucial next step is to engage NextArc to conduct a formal QoX™ Audit. This deep-dive diligence process validates every assumption in the model, providing the investment committee with a definitive report on the target's operational risks and the specific costs required to address them post-close.

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3. The Leadership Friction Profile

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• Purpose & Outcome: This is a behavioral diagnostic for CEOs and their leadership teams. It uses 20 specific scenarios to identify the team's dominant dysfunctional pattern, or Primary Dysfunction Archetype (e.g., "Hub-and-Spoke," "Artificial Harmony"). The outcome is not just a label but a clear understanding of the specific behaviors that are creating drag, slowing decisions, and hindering performance.

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• NextArc Engagement: A leadership team can use the online tool to get a powerful, data-driven conversation starter about their internal dynamics. The essential follow-up is a NextArc Leadership Team PROfile engagement. Our consultants use the diagnostic results to facilitate a confidential offsite, where we move from diagnosis to solution, building a specific action plan to eliminate friction and accelerate team performance.

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4. PE Human Capital Value Creation Forecaster (EBITDA Model)

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• Purpose & Outcome: This is a strategic forecasting tool for PE Operating Partners and portfolio company C-suites. Its purpose is to model the financial return on human capital initiatives over a 3-5 year hold period. The key outcomes are the Incremental Value Created by these initiatives and the Human Capital ROI—a clear, defensible multiple on the investment.

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• NextArc Engagement: This is the capstone of the suite. A user can model hypothetical scenarios on their own. However, the Forecaster becomes a powerful strategic weapon when NextArc is engaged to connect the suite. We use the findings from the other three tools to create data-driven inputs for this model, turning a hypothetical forecast into a defensible, integrated Value Creation Plan.

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5. QoX Pre-Acquisition Human Capital Diligence Predictive Model

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• Purpose & Outcome: This is a pre-acquisition diligence tool for PE Deal Teams and Corporate Development professionals. Its purpose is to rapidly quantify the hidden risks and value creation opportunities within a target's human capital function. The model's predictive power is derived from a proprietary underlying database of 6,200+ historical transactions, ensuring a robust and relevant comparable set for its analysis. The key outcomes are a defensible HC Risk Score, an adjusted Human Capital Debt figure to inform negotiations, and a predictive model of the deal's MOIC and IRR, showing the potential uplift in value via human capital initiatives.

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• NextArc Engagement: While the Diligence Model can be used for a rapid initial screening, its predictive power is fully unlocked when NextArc is engaged to conduct the underlying human capital diligence. Our team conducts confidential management interviews and performs data room analysis. Using these qualitative and quantitative insights, the NextArc team itself completes the model's diagnostic survey, which transforms a preliminary assessment into a comprehensive, data-backed diligence report that can be confidently presented to the investment committee and used to de-risk the deal.

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PE Human Capital Value Creation Forecaster (ARR Model)

 

How the Models Interrelate

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The QoX™ Suite is designed as an integrated system where the diagnostic tools feed the forecasting tool.

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• The HR Risk Score and Investor Risk Model identify the problems and quantify the Human Capital Debt (the cost to fix things). This debt figure can be used to inform the "Total HC Investment" input in the PE Forecaster.

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• The Leadership Friction Profile diagnoses the specific team dysfunctions that are slowing down the business. The severity of this friction provides the justification for the "Leadership & Execution Alpha" slider in the PE Forecaster. A team with high friction has a greater potential for improvement, justifying a higher uplift percentage.

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• Essentially, the first three tools provide the data-driven "why" and "how much it will cost," while the PE Forecaster models the "what it's worth" in terms of enterprise value.