7/28/2019 Clever Companies Diagnostic Chart

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ROWTH STAGES

ash Management

sset Management

Marketing

rganisational Behaviour

Managementeporting

nformation

ystems/Internet

olutions

CONCEPT

Access to Angel/VCNetwork

Management byCheckbook

Valuation of Business

Controlled Spending onPromotion, Networking

and Travel

Not Developing

Meaningful, UniqueProduct Attributes

Lack of Identity andBrand Awareness

Adapting to EnvironmentReal-Time

Continuous EvaluationActing Swiftly Leaving

Details for Later

Virtual Network

Initial PC/InternetApplications

INCEPTION

Negative BalancesTaxes Delayed

Not Conserving CashImprudent Purchasing

Getting Above Noise Level

of CompetitorsLow Market Acceptance

Potential Loss of Vendorsof Customer

"Emperors New Clothes"Syndrome

Keeping Running Total in

HeadNo Budget

Selecting Best System atLowest Cost

Application SupportSecurity of Data

SURVIVAL

Cash Outflow ExceedingInflow

Marginal Bank BalancesSurprised Lenders

Poor Turnover of AssetsEmphasis on Sales vs

ProfitBuying vs Leasing

Inadequate Capital

Cost Pressures on

Quality

Absence of External

AdviceDenial of Internal

Feedback

Late Data

Unanticipated Results;No Feedback

No Interim Reports

Upgrading WithoutAssessing Needs,

Alternatives & Employees

GROWTH

BankablityHigh Leverage

Absence of Financial &Tax Strategy for Generating

Cash

Excessive Increases inOverhead and Personnel

Inventory Shortages orImbalances

Vintage ReceivablesShort-term Financing

Absence of Market

FeedbackHigh Product Returns or

Write-Offs

Not meeting Sales TargetsGrowing Backorders

Competitor KnockoffsCustomer Complaints

No Strategic MarketingPlan

Emergence of "Peter

Principle"Avoidance of Difficult

Decisions About Roles,Authority & Responsibility

Budget is the Plan

No Flash ReportsOverridden or Inadequate

Internal SystemsNo Strategic Planning

No Contingency Planning

Developing CustomisedApplications

Systems Non-Responsiveto Customers & Employees

Being a Guinea PigNo Systems Plan

No Decision Support

EXPANSION

Debt Service ExceedingCash Flow

Prohibitive CovenantsCustomers Demand

Special Terms

No Coordination ofOperating Plan with

Financial ConditionsNo ROI and Capital

Investment Analysis

Not Meeting Volume &Mix Targets

Low GrowthShrinking Market Share

Not Relating MarketingExpenses to Sales Targets

No Key AccountProgrammes

New Executives Values

Clash with the CultureLayers Slow Decision-

MakingLack of Delegation

No Feedback & Analysis of

Profitability & PerformanceNo Buy-in to Operating

PlansBlurred Accountability

for Corrective Action

No Timely Reports onSales, Inventory, Key

Customer PositionsInformation Systems

Driving the BusinessNo Disaster Recovery Plan

No Control Environment

MATURITY

Sustained Periods ofNegative Cash Flow

No Formal InvestmentStrategy

Declining MarginsBusiness Segments Not

Evaluated for ROACapital Projects Not Linked

to Sustainability of BusinessNo Capital Budget

Not Low Cost Provider

No Evaluation of the

Profitability of ChannelsNo Assessment of

Advertising & PromotionEffectiveness

Reduced Communication

& Cooperation AmongFunctional Units

Unhealthy Competitionfor Power

Control Systems Not

DocumentedMeasurements Not Related

to Success FactorsReporting Not Tied to

Management Incentives

Absence of Integration forBusiness and Systems Plans

Inability to SelectivelyAnalyze Customer &

Product Data

GROWTH STAGES

Company Objectives

Structure of

Organisation

Management Style

Products & Markets

Major Expenditures

Sources of Financing

CONCEPT

Clarifying VisionDefining Market Needs

Establishing CompetitiveNiche and Brand Image

Creating Platform toExpand Products and

Services Vertically and

Horizontally

Virtual

Strategic Alliances

Entrepreneurial

"One-Man Band"

Identifying Customer

NeedsProviding Convenience

(Variety, Pricing, Speed)

Designing/Developing

Products/Services,

Technology Applications,and Brand

R&D/Licensing

OwnersFriends

RelativesSuppliers

CustomersVenture

Government Grants

INCEPTION

Obtaining Customers &Cash

Producing Product orService

Informal

Management by Founders

Entrepreneurial

Consensus Decision-Making

Single Product

Limited Channels andMarket

Prototype of Product

OwnersFriends

RelativesSuppliers

CustomersVenture

Government Grants

SURVIVAL

Expanding RevenuesCost Awareness

Quality Consciousness

Simple

Expanded ManagementTeam

Entrepreneurial

Management by WalkingAround

Gaining Repeat

Customers

Expanding Channels

CustomersHuman Resources

BanksGovernment Grants

Leasing

GROWTH

Maintaining Perspective(Reality vs Euphoria)

Coordinating ResourcesBalancing Todays &

Tomorrows needs

Centralised

AutonomyBlurred Accountability

Conflict Between Formal

and InformalMultiple Entrepreneurs

Decreasing Contact with

Employees, Customers

Broadened LineFocused Channels

International Trade

Plant & EquipmentInventory & Receivables

Management ReportingSystems

InstitutionalNew Partners

Profits

EXPANSION

Financing GrowthMaintaining Control,

Enthusiasm &Commitment

Products or Markets

Functional Accountability

Delegation of Authority

to ProfessionalManagement

Reduced EntrepreneurInvolvement

Extended Geographic

Coverage

New or EnhancedProduct Lines, Markets

& Channels

Broadened OperatingCapabilities

Geographic & ChannelExpansion

Capital MarketsProfits

Joint VenturesLicensing

MATURITY

Expense ControlProductivity

Global PenetrationManagement of Market

Niches

Decentralised

Functional/ProductAccountability

Redeployment of

Management Talent

Management byObjectives

Maintaining & DefendingMarket Position

Repackaging or RevitalisingSeeking or Expanding

Market Niches

Equipment to ReduceProduct Cost

Building CompetitiveBarriers

Cash FlowInternational Financing

Divestiture of Segments

RY ANOTHER PERSPECTIVE. For a broader look at your business, give copies of this diagnostic to other members of management and your advisors, and compare their

assessments to yours. By sharing opinions, youll be able to better anticipate problem areas and plan for the future.

WHATARE YOUR MOSTSERIOUS MANAGEMENT CONCERNS?After youve identified your companys growth stage, use the chart below, to focus on the management concerns, youre facing now and may face at the next stage of business

rowth. It may be helpful to first circle current concerns, as a step toward seeking solutions.

MANAGEMENT CONCERNS

WHEREDOES YOUR COMPANY FIT?Scan the six vertical columns below, describing the business characteristics of the stages of growth. Then locate and circle the characteristics that best describe your company.

A pattern should begin to emerge, identifying your companys stage of growth, primarily in a single vertical column. All your circles may not be confined to one column, however,

because some business functions will be more developed than others.

BUSINESSCHARACTERISTICS

of Product or Customer

ServicePredatory Competitors

Low Repeat BusinessProduct Failures

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