Business Analysis

MOMENTUM: 5 – 20 EMPLOYEES

SUCCESS ATTRIBUTES

The owner/founder sets the pace.
Has clear focus on leverage points and strengths of the business.
Stays focused, on strengths and on the business plan.
Communicates the vision well and is typically the best sales person for the company.
Has a clear financial model and understands how and when they make (or lose) money.
Handles administrative duties in “personal” time.

The owner/founder becomes the obstacle.
Stuck between greed and fear, he/she lives in survival mode and will take on bad business just to get business.
Easily distracted.
Lacks discipline to guide the business.
Makes side deals, resulting in inconsistencies with clients and employees.
Fails to leverage dollars and resources back into the company.

METAMORPHOSIS: 20 – 65 EMPLOYEES

Owner/entrepreneur has successfully scaled early successes to become a manager.
The founder’s vision is ingrained in the culture.
Management is actively engaged in all aspects of the business, and has established trust throughout the organization.
The company effectively responds to change, whether it’s growth or decline.
Founder establishes controls across the business with matrices for employee performance, financials, etc.
Management remains in touch with the customer.

Business is expanding without organizational alignment.
Original core messages have been lost.
Process issues—either no business processes or a management too focused on process.
There is a lack of alignment between talent and need. Talent is either focused on the wrong things —or you have the wrong talent.
Management is out of touch with the needs of the organization and the customer.
The benefits of entrepreneurship get lost in the transition to management.

STABILITY: 65 – 100 EMPLOYEES

Company has stable management and a consistent culture that revolves around key principles or philosophies.
Management systems have matured with fiscal, organizational and managerial discipline.
Company has successfully aligned disciplines with key talent.
Company has at least one solid cash cow.
Company has evolved into a professionally managed organization with an entrepreneurial spirit.
There is focus on evolving the company through organizational design and development.
Proactive review of organizational readiness for the future.

Founders vision has been lost, management and the culture is fragmented.
The company has outgrown its managers, or hired in professional managers who are not a good fit for the culture.
Leadership is hung up on talent costs necessary to drive the organization forward so they don’t hire the best people they can find.
Company politics create distractions.
The company suffers from a failure to innovate.

FOCUS: 100+ EMPLOYEES

Leadership focuses on the future of the company, and considers succession planning and leadership development.
More attention is paid to strategic planning.
Strong base of business, but has the ability to innovate and diversify.
Clearly defined policies and procedures.
Not easily distracted.
Less need to worry about day-to-day issues.

The leadership is the wrong fit for the organization or vision.
There is a lack of succession planning to ensure the long-term health of the company.
The organization lacks direction.
Senior management has lost touch with product and customers.
Leadership doesn’t understand the role of management.
Company lacks profitability.
Organizational and departmental politics.

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