Read each question below and choose YES or NO which best represents your opinion. If you are not certain of your opinion then answer NO. If the question does not apply to your company then answer YES.

1. When decisions are made they tend to be reasoned and well thought out rather than reactionary or impulsive.
   Yes or No
2. The success of this company is not dependent upon a single individual. Knowledge of the business and its' operation are spread among several managers who can function effectively and profitable, if the president or owner is away for long periods of time.
   Yes or No
3. All members of the management team, including foreman, know clearly what their immediate supervisor expect from them this quarter/year and how they are suppose to achieve the desired objective(s).
   Yes or No
4. Senior management has forecast capital requirements for the next 12-24 months and knows what these funds will be specially used for.
   Yes or No
5. The management team knows what the demand is for your company's product or service.
   Yes or No
6. Most expenditures in this company are anticipated and disbursements timed for efficient cash flow utilization with a specific purpose in mind for the expenditure.
   Yes or No
7. The management team works well together and has more than adequate leadership and management ability to move this company and its resources (time, money, people, and equipment) profitably into the future.
   Yes or No
8. There is little finger pointing in this company. When issues or problems arise, we often work as a team to come up with solutions. Egos and territorial protectionism are set aside as everyone pitches in as needed.
   Yes or No
9. This company does a good job at monitoring the marketplace and the industry group we serve. I think we have a good feel for what is going on and we always try to incorporate this research into our plans for the future.
   Yes or No
10. The top managers of this company meet at least annually for business planning which generally attempts to propose strategies to overcome problems and constraints, as well as facilitate innovation and continued profitable business expansion.
    Yes or No

TOTAL your YES responses.

8-10 YES responses indicate that you have a management team that generally works well together and tends to know where to the company is going.

5-7 YES responses indicate that a benefit can be achieved by annual -- formal business planning.

0-4 YES responses almost surely indicate vast opportunities for improving the bottom-line through establishment of common goals, problem solving and productivity improvement initiatives.

Recommendation: Begin by performing a more comprehensive organizational evaluation to pinpoint which management policies are positively impacting the company and those requiring change. Next develop a business plan as a team to include strategies that address constraints discovered during the evaluation. Consider training to address inefficiencies in your manager's abilities to lead, influence and motivate people to achieve goals and improve departmental performance.

Comment: It is not unusual for a small to medium size company to engage professionals (i.e. accountants, consultants, trainers) to help with the evaluation, business planning and training and development. The increase in performance and productivity is often far greater then the investment made for professional assistance. But be patient. It takes time for your initiatives to payoff in increase profits and company performance.

Langworthy Company Consultants

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