Business Enhancement Score Card

Directions: This Score Card has been designed to help you evaluate the extent of your implementation of vital systems in your business. Please rate your business according to the following scale for each of the Strategies.

(5) Excellent/Always, (3) Fair/Sometimes, (1) Rarely / Needs Work. (Not all strategies apply to all businesses, N/A

Every manager is actively coaching subordinate team members on how to execute their responsibilities. New team members are systematically apprenticed by managers and a strong apprenticeship culture exists in the business.

OR

Managers work in isolation from other team members. New team members learn how to execute their responsibilities on their own by trial and error. No apprenticeship culture exists in the business and everyone fends for themselves.

The Operations and Training manual is current and revised on a quarterly basis at minimum. Team members refer to the manual regularly for information on how to execute their responsibilities.

OR

An Operations and Training manual is non-existent or hopelessly out of date. Team members do not consult with written documentation for information on how to execute their responsibilities.

Every shareholder and manager operates according to a default calendar and prioritizes their activities based on high importance items first and urgently important items second.

OR

Shareholders and managers operate on a reactive, fire-fighting basis each day, focusing on completing urgently important tasks firsts and working on high importance items whenever they can fit them in.

Shareholders are monitoring the value of the business on a quarterly basis at minimum, hold managers accountable for increasing shareholder value, and are entertaining offers from qualified industry buyers to purchase the business.

OR

Shareholders have no objective, market-based valuation of the business and managers are not measuring and managing the company based on shareholder value. Business is not being marketed to qualified industry buyers.

The 5 to 10 most important numbers indicating the performance of the business have been identified as Key Performance Indicators and are systematically measured and reported on a daily or weekly basis. Every team member knows which numbers are being used to measure their individual performance.

OR

No numbers have been identified as Key Performance Indicators and no metrics are being measured, reported, or managed other than those derived from basic financial statements. Team members have only a general idea of how their individual performance is making or breaking the business.

All team members are rallied around a commitment to eliminate wasted time, movement, and materials to continually improve efficiency, cut production costs, and compete effectively. Ongoing analysis of the customer experience has differentiated the company's customer service from competitors.

OR

Team members have no commitment to eliminating wasted time, movement, and materials to compete more effectively. Efficiency is not measured, managed, or rewarded. No thought has been given to the customer experience, thus customer service is perceived as inconsistent at best.

Every team members has an incentive package that motivates them to work as hard as shareholders and managers. A blend of base and at-risk pay is used to incentivize commitment, and creativity and team members care about the business as if it was their own.

OR

Employees leave their passion, motivation, and creativity at home each day and contribute the minimum required effort to keep their jobs. Employees and managers expect base pay and benefits with nothing at-risk and no incentive to care.

A written strategic plan clarifying the vision, mission, and values of the team, annual and quarterly financial targets, and strategic objectives is monitored weekly by managers and updated with input from all team members on a minimum of a quarterly basis.

OR

A written strategic plan has not been developed, so the vision, mission, values, and objectives of the team are poorly defined and constantly changing. Strategic direction and decisions are made by the shareholders without input from the rest of the team.

Shareholders spend most time mentoring & guiding, making sure employees have support and resources to achieve operating goals. A plan to develop emerging leaders is closely monitored. Key employees are incentivized for long-term commitment and a leadership succession plan is defined.

OR

Shareholder leadership consists primarily of putting out fires. Employee development or mentorship is non-existent and the leader feels they have no dependable followers. No plan exists to identify and intentionally develop emerging managers and leaders as high value human capital.

A rhythm of regularly scheduled team meetings for goal-setting, reporting, and accountability take place on a annual, quarterly, weekly, and daily basis. Decisions made by shareholders' and upper management cascade through the organization quickly and efficiently.

OR

There is no rhythm of regularly scheduled team meetings and the communication from shareholders and managers is inconsistent and inefficient. Off-site planning meetings are rare and decisions are communicated haphazardly throughout the organization.

Managers carefully monitor the system of work flow in the organization. Organizational charts and job descriptions are regularly updated to prevent waste and duplicated effort. Regular job appraisal and management takes place so that everyone on the team knows their role and sphere of authority.

OR

Little thought is given to the system of work flow in the organization. No formal organizational charts, job descriptions or regular performance management or appraisal exist. Role confusion among the team creates wasted and duplicated effort. Authority has not be clearly delineated or delegated, so work moves inefficiently through the business.

A system for understanding and maximizing the inherent synergies of personality differences has been embraced by the team. Communication is healthy and conflicts are resolved easily as team members adapt to the behavioral style of other team members.

OR

There is little or no awareness of personality differences. The team is continuously plagued by irritating communication patterns and conflicts remain unresolved. A culture of frustration with the unadapted behavioral style of other team members exists.

Managers monitor and update the business plan on a quarterly basis to forecast cash-flow, determine working capital requirements, and calculate the company's ability to pay back debt and make a profit for shareholders and investors.

OR

Managers have no business plan to forecast cash-flow, determine working capital requirements, and calculate the company's ability to pay back debt and make a profit. Planning is done only in reaction to the immediate needs of the business.

The managers have implemented a plan to cut fixed costs enough to stop the bleeding and quickly spike sales to above break-even so owner drawings and fixed costs are covered, and debt is being repaid.

OR

Managers have allowed fixed costs to bloat and sales to decline to the point where revenue is below break-even, essential costs are not being covered, and debt is increasing continuously.

The managers have developed a month by month budget to forecast the amount of revenue required to deliver desire EBITDA net of owner drawings. Management and financial decisions are made in consultation with weekly budget versus actual reports.

OR

The managers have no month by month budget to forecast revenue and expenses and deliver desired earnings and owner drawings. Management and financial decisions are made based on bank account balances and sales estimates.

Managers carefully monitor their plan to improve collections, lengthen terms with vendors, increase prices as aggressively as possible, and eliminate operational inefficiencies. Cash is being used to invest in growth and high interest repay debt.

OR

Managers have allowed receivables to grow unchecked, vendors have tightened their terms, and price pressures and inefficiencies have cut gross margins. Cash flow problems are increasing indebtedness and investments are being postponed.

Shareholders and managers have identified and persuasively articulated a Unique Selling Proposition and a Guarantee to compel ideal clients/customers to pay a higher price instead of dong business with competitors. The entire team is aggressively communicating this message to the targeted market.

OR

No Unique Selling Proposition and a Guarantee exists in the minds of shareholders, managers, team members, clients/customers, and prospects. The only point of differentiation is price so the business has no significant value proposition. An unclear and confusing message is communicated by the team.

The sales force has a well tested, carefully scripted sales process and their activity is coordinated with an appropriate customer relationship management software solution which measures and reports conversion rates and results on a weekly basis. Sales force compensation is based on actual sales results.

OR

Those involved in sales have no formal or tested sales process and their activity is not coordinated, measured or managed on a regular basis. There is a large gap between high and low performers. Sales force compensation is structured around salaries with little emphasis on delivering results.

An aggressive, measurable marketing plan produces a predictable number of leads, improved conversion rates, increased revenue per transaction and increased transactions per customer so profits increase exponentially. Market analysis is ongoing and a clear definition exists of the target customer. The brand is presented consistently. Results are measured and improved on a weekly basis.

OR

No marketing plan exists to produce a predictable number of leads, improve conversion rates, increase revenue per transaction, and increase transactions per customer. The results of spending on marketing and advertising is unmeasured and unmanaged. No market analysis or study of target market exists and the brand is represented inconsistently.

Larry N. Lamphier, P.E., MBA Wintergreen Associates, LLC

1-440-346-0402

Larry@WintergreenAssociates.Com