The rapid assessment of a business situation, combined with the courage of its leader to take bold action, is key to accelerating the growth of a company.
This should be done with some structure, so that you are not breaking the things that are fixed, while fixing the things that are broken.
In addition, a quantitative approach reassures the employees that decisions are being made by leaders in a thoughtful and measured manner, with all interests taken into consideration.
The following is an excerpt from an assessment tool I use when reviewing a company, and I am posting it today for the benefit of my subscribers
The following is a readiness self-assessment based on the top ten factors that drive business growth. Assess each factor on how closely your company currently fulfils the definition, and apply a score on a scale from 0 to 4. Total the score and review your results below.
Never (0), Rarely (1), Sometimes (2), Mostly (3), Always (4)
- Team is experienced, capable, with complementary expertise and a track record of results.
- Product solves a significant customer pain in a unique, compelling and protected way.
- Finances have positive cash flow, good margins, with growing revenue and access to capital.
- Business Model is simple, scalable, and creates value with multiple market channels.
- Business Systems are lean, customer focused, repeatable and resilient.
- Customers Market segment is clearly defined, pain point understood, growing and global.
- Core Competency is known, clear, invested in, unique and leveraged across the company.
- Competition is low or fragmented, with high barriers to entry.
- Strategy is known, documented, communicated and supported by culture and actions.
- Key Metrics are closely monitored, customer oriented and drive decisions.
Total Score (Maximum is 40)
Results and Assessment
Score (0 – 10)
Poor: Weak competitive position, with a no or low foundation for growth. Significant risk of financial or market deterioration. Long term viability of the business, without significant intervention, is doubtful.
Score (11 – 29)
Average: Several key elements for growth are in place, providing a foundation and resources to potentially expand the business. Review of the lowest scoring factors is necessary, and begin immediately to address deficiencies in order to improve long term performance and viability.
Score (30 – 40)
Good: Strong competitive position, with most of the necessary factors for growth in place. Well positioned to become a significant competitor in an attractive market, generating above average returns. Superior returns and a dominant market position can be attained through strategic review and the implementation of sustained and aggressive growth initiatives.
Feel free to share this template with others who may benefit!
For more information on how to accelerate the growth of your business, visit Percygroup.ca.