Test Your Business Against the Best Managed
and Most Profitable Companies in Existence

This test is designed to compare your company with the best managed companies. The questions are objective. You will compare management knowledge and tools used in your company with companies that are designed to generate profit. The object of this test is to determine if there is room for improvement in your company.

The test scores are not collected. The information you enter here is for your private use only.

Answer each of the questions below with a 'Yes', 'No' or 'Somewhat'

Financial Section: 1.   Does your company have a financial model? (A monthly income statement is the most basic financial model) Yes:       No:       Somewhat:   2.   Does your financial model segregate fixed cost and variable cost? Yes:       No:       Somewhat:   3.   Does your financial model distinguish between Product variable cost and Time variable cost? Yes:       No:       Somewhat:   4.   Does your financial model provide a set budget for each functional department based on revenue? Yes:       No:       Somewhat:   5.   Do you know the level of revenue you must achieve to reach breakeven? Yes:       No:       Somewhat:   6.   Do you know the profit margin after breakeven is reached? Yes:       No:       Somewhat:   7.   Do you know the incremental improvement in profit margin after Time variable costs are paid in full? Yes:       No:       Somewhat:   8.   Do your employees have an objective measure of their financial performance? Yes:       No:       Somewhat:   9.   Do your managers have an objective measure of their department's financial performance? Yes:       No:       Somewhat:   10.  Do you know your financial position regarding revenue, budget, and progress toward profit, by department every day? Yes:       No:       Somewhat:   Marketing and Sales Section: 11.  Do you know how many leads you need every day to reach your profit goal? Yes:       No:       Somewhat:   12.  Do you know how many qualified prospects you need every day? Yes:       No:       Somewhat:   13.  Do you know what percentage of qualified prospects become customers? Yes:       No:       Somewhat:   14.  Do you know how many resources you need to apply to marketing to generate the minimum number of leads you need each day? Yes:       No:       Somewhat:   15.  Do you have a sales growth plan that is based upon hard historical statistics? Yes:       No:       Somewhat:   16.  Do you measure you market penetration against your competitors by your own sales performance statistics? Yes:       No:       Somewhat:   17.  Do you have a solid sales and marketing resource plan that will generate the sales needed to meet your growth plan? Yes:       No:       Somewhat:   18.  Do you pay your sales people consistent with your growth plan? Yes:       No:       Somewhat:   19.  Do you have a pricing strategy that takes advantage of your business's unique set of resources? Yes:       No:       Somewhat:   20.  Does your pricing strategy take into account under utilized resources? Yes:       No:       Somewhat:   Employment Section: 21.  Do your managers manage each department based upon financial objectives in your financial model? Yes:       No:       Somewhat:   22.  Are all of your employees paid based on their contribution to the bottom line? Yes:       No:       Somewhat:   23.  Do your employees understand their numerical relationship to the bottom line? Yes:       No:       Somewhat:   24.  Are your managers paid based upon their numerical relationship to the bottom line? Yes:       No:       Somewhat:   25.  Do your employees and managers understand how they increase their take home pay? Yes:       No:       Somewhat:   26.  Does your business model have an inherent means of insuring that your employees are paid fairly? Yes:       No:       Somewhat:   27.  Is your employees' morale a function of the success of your business? Yes:       No:       Somewhat:   28.  Are your employee's incentives consistent with the company's incremental profit? Yes:       No:       Somewhat:   Revenue Generating (Production) Section: 29.  Do you know the exact percentage of your financial model that directly generates the company's revenue? Yes:       No:       Somewhat:   30.  Are all of your product variable costs directly variable with your revenue? Yes:       No:       Somewhat:   31.  Do you control your time variable costs as a percentage of revenue? Yes:       No:       Somewhat:   32.  Do you know the capacity of each of your revenue generating resources? Yes:       No:       Somewhat:   33.  Do you know the amount of under utilized resources that you pay for each month? Yes:       No:       Somewhat:   34.  Have you calculated the cost advantages of under utilized resources for use in your pricing and market penetration strategies? Yes:       No:       Somewhat:   35.  Do you have a capital spending plan that is based on your financial model? Yes:       No:       Somewhat:   36.  Do you know the economic value in dollars produced for each dollar of cost for each of your revenue generating work centers? Yes:       No:       Somewhat:   37.  Do you have a productivity improvement plan that is targeted toward the work centers that will create the greatest return on investment? Yes:       No:       Somewhat:   38.  Do you know the cost of under trained employees? Yes:       No:       Somewhat:   39.  Do you have a continuous training program? Yes:       No:       Somewhat:   40.  Do you post performance measurement information for every work center? Yes:       No:       Somewhat:   Raw Score:          Percentage:   % Test Results:

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