Your Financial Readiness Score is out of 20.

Your Company is in the ^th Percentile.

Financial Value Area Findings and Salability Recommendations:

Your company does not have the necessary financial reporting, metrics, or expert resources to monitor free cash flow employee performance or the overall value of your business. It is critical that you retain outside experts (ASAP!) to help you build these financial metrics and systems to determine the business’s profitability, financial constraints and what it needs to improve its financial readiness. These efforts will save the business during uncertain economic times and increase the future free cash flow of your business.

Here are your next steps:

• Define “financial success” for your business and determine its key performance indicators (KPIs).
• Hire an expert to help you create and measure all financial metrics and have them train someone to manage these standards and metrics.
• Determine how to measure and utilize free cash flow in your business – it is the protein for building future Transferable Value.

Financial Value Area Findings and Salability Recommendations:

Your business is barely meeting required financial accounting and reporting standards, and it is unlikely it has the necessary tools and resources to survive if problems arise. Reassess your current financial and reporting systems and consult with an expert (ASAP!) to upgrade your financial metrics and reporting processes. Begin conducting annual valuations and cash flow projections to measure your ongoing financial health and future free cash flow.

Here are your next steps:

• Define financial success for your business and determine its key performance indicators (KPIs).
• Hire an expert to help you create and measure all financial metrics and have them train someone to manage these standards and metrics.
• Start measuring free cash flow in your business and look at valuing the company (obtaining an estimate of value) on an annual basis.

Financial Value Area Findings and Salability Recommendations:

There are some systems in place that adequately measure and monitor your business’s financial performance, but more time or some modifications are needed to better determine the overall value of your business. Monitor free cash flow to determine annual increases in financial value. Also, make sure your financial metrics are directly tied to the company’s “Key Performance Indicators.” Continue using qualified financial experts where needed to give you reliable financial data. You’re on the right track!

Here are your next steps:

• Review and revise your financial metrics as needed to make sure you are measuring and monitoring the correct financial indicators.
• Appoint someone in the business to work with your CPA/advisor to measure and monitor annual performance and free cash flow – it’s the protein for building transferable value.
• Determine how much annual free cash flow is needed to support your growth and strategic initiatives (new hires, acquisitions, marketing, new offerings, etc.).

Financial Value Area Findings and Salability Recommendations:

Congratulations! You are in the top percentile of owners who have adopted the necessary financial metrics to grow the business and increase its free cash flow. You’re on track to building a financially strong, self-sustaining company which will be extremely valuable to your future successor. Continue working with your business advisors and using your financial metrics to make smart business decisions. Keep up the great work!

Your Employee Readiness Score is out of 20.

Your Company is in the ^th Percentile.

Employee Value Area Findings and Salability Recommendations:

Your business is a revolving door when it comes to employees. As a result, it will be difficult to vest or retain your people and it is likely that your staff is not very committed to the business. You will need to pay your people at or above market rates, offer them other cash-based incentives (i.e., performance bonuses), and keep them motivated to meet expectations. Provide opportunities for raises, professional development, and advancement, and if you decide these folks are essential, vest them as key employees (See our blog and e-books on Key Employee Incentive Plans).

Here are your next steps:

• Identify your important and indispensable employees in the business.
• Clearly define their roles and set reasonable performance standards that can be accomplished and will positively impact the business.
• Define who is a key employee (most indispensable) and determine how to keep them motivated to stay in your business.

Employee Value Area Findings and Salability Recommendations:

You have a handful of employees that are essential to the success of your business, and you want to keep them motivated and retained. However, you do not have clearly defined employee performance standards and there is no objective basis for their compensation. Also, there is likely no clear plan for their development, advancement, or higher compensation and benefits. Your people could easily leave given the right mix of opportunities elsewhere. Set new performance standards, tie those standards to their compensation and benefits, and create a plan for your employees’ development. Vest them into the business!

Here are your next steps:

• Define the requirements of a “key employee” and determine what is required to vest and retain them in your business.
• Clearly define the roles for each position, determine which employees possess the skills for those roles, and set reasonable performance standards for each position.
• Connect employee performance standards to compensation and benefits and create a plan for each employee’s development and advancement.

Employee Value Area Findings and Salability Recommendations:

You understand the value of key employees and a strong management team. Determine what exactly is required to become a key employee and make sure there are clearly defined performance standards for each job function. Create incentivized compensation packages (cash and equity) to motivate and retain your key employees and managers and provide them clear opportunities for advancement. All of these things should be clearly defined in your Employee Handbook and regularly reviewed with your employees. Overall, you are on the right track to building and retaining your most prized assets!

Here are your next steps:

• Define the eligibility for becoming a key employee for each position.
• Cleary define the roles, reasonable performance standards for each position and begin tying employee compensation and benefits to those standards.
• Determine what types of incentive compensation (performance bonuses) may be used to retain your key employees.

Employee Value Area Findings and Salability Recommendations:

Congratulations! You are in the top class of companies that appreciate and invest appropriately in their most important asset…their key employees and managers. It is critical to define the objective standards for who is a key employee, review and modify their performance standards and job functions annually and award them with cash and or equity if they continue exceeding their performance standards. These key employees and managers will become dedicated to your success and become your “next level” leadership team, enabling you to exit on YOUR TERMS!

Your Strategic Readiness Score is out of 20.

Your Company is in the ^th Percentile.

Strategic Value Area Findings and Salability Recommendations:

You do not have documented internal systems, processes, or procedures (SPPs), and you do everything (or most things) in the business. You will need to learn how to delegate your operational tasks to your key and important employees. We recommend mapping out, in detail, what you do, and how it can be delegated to others to implement the necessary SPPs. Begin by setting key performance indicators (both financial and organizational) and create a board of advisors to help identify and address performance issues and make future recommendations.

Here are your next steps:

• Establish new key performance indicators (financial and organizational) and use them to measure annual increases in your company’s value.
• Create a board of advisors consisting of internal key employees and outside professionals to identify and address key performance issues that can affect your company’s value.
• Create documented internal systems, processes and procedures for each area or function of your business (operations, marketing and sales, HR, and administration).

Strategic Value Area Findings and Salability Recommendations:

Your company has internal systems, processes, and procedures (SPPs) but your people do not use them or know how. Annually review and update your SPPs and make sure your key performance indicators (KPIs) are achievable and measurable. Adopt a process that holds you and your employees accountable for using and documenting the SPPs and meeting your company’s KPIs. Also, implement a business continuity plan to determine who will manage and own the company in the event something happens to you.

Here are your next steps:

• Review, re-define and document all current SPPs for each business function in the company – assign a key employee to oversee and manage this process.
• Make sure that all SPPs are known by your employees and that they are incentivized (monetarily and otherwise) to use and improve all documented SPPs.
• Connect your SPPs to the company’s annual KPIs – make sure that the SPPs are required to accomplish your annual KPIs.

Strategic Value Area Findings and Salability Recommendations:

You’ve created some strong internal systems, processes, and procedures (SPPs), but they can be tied more closely to your key performance indicators (financial and organizational) so you can maximize the operational value of the business. Annually review and update your key performance indicators and make sure that you include your key employees, managers, and outside advisors in your decision-making process. Create a business continuity plan to protect the company’s current value and proprietary interests in the event something happens to you.

Here are your next steps:

• Periodically review and redefine your existing SPPs and make sure they are well- documented, known and used by your employees.
• Make sure your annual strategic goals are tied to the business’s KPIs and that the SPPs are directly tied to the KPIs – the SPPs need to be properly utilized to achieve your KPIs and strategic goals.
• Determine how to incentivize or reward (monetarily or otherwise) your employees to use and improve your current SPPs.

Strategic Value Area Findings and Salability Recommendations:

Congratulations! Your internal operations are running well, and you are effectively monitoring the key areas of the business. Continue assessing your systems, processes, and procedures to make sure they are efficient and include all necessary key employees. Manage your performance indicators (financial and operational) to make sure you are getting the data you need to make good strategic decisions. Involve your managers and trusted advisors in your strategic decision-making process and look for opportunities to delegate to others. Lastly, create a business continuity plan to protect the company’s current value and determine its future management and ownership in the event something happens to you.

Your Market Readiness Score is out of 20.

Your Company is in the ^th Percentile.

Market Value Area Findings and Salability Recommendations:

You need to diversify your current products or services, the markets you sell into, and the kinds of customers you serve. Find ways to upsell new products or services to existing customers while also growing your customer base. Implement a growth strategy to increase profits with your current customer base and each new customer area. You need to increase your Growth and Market Readiness by diversifying your products or services and the markets you serve.

Here are your next steps:

• Determine your flagship products or services and your current level of market/customer diversification – if possible, hire an expert to conduct this analysis.
• Determine which products and services generate the highest profitability and which are best positioned to be upsold to current customers and or sold in new markets.
• Hire an outside marketing firm to consider all potential solutions to increase your market share and diversification and build a growth strategy.

Market Value Area Findings and Salability Recommendations:

Your products or services are not diversified enough (they are too similar in value), and your market concentration is too heavy (meaning that most of your revenue comes from a few customers). Implement a “growth strategy” to sell new or complimentary products or services to your existing customers and your current products or services into new complementary markets Train salespeople to lead this effort and incentivize them to stay in the business indefinitely. You can increase your Growth and Market Readiness if you kick it into gear!

Here are your next steps:

• Evaluate and address your current diversification – both products/services and with customers. You do not want more than 15-20% of your revenue from one customer, or more than 50% of customer revenue being generated from one product or service.
• Evaluate potential growth strategies – vertically with existing customers and horizontally with new customers. Hire a marketing company or consultant to lead this program.
• Identify and begin training a key employee (salesperson) to champion this program. Look at unique ways to incentivize and reward them.

Market Value Area Findings and Readiness Recommendations:

You are on the right track! Continue diversifying your products or services while seeking new complementary markets for your existing products or services. Formalize a growth strategy and empower your key employees (salespeople) to champion this effort by incentivizing them to increase sales, revenue, and profitability. Continually develop sales team., teaching them to cross sell so that they are always familiar with the latest products and services. Finally, vest them into the company – they are the gas pedal to your future enterprise value!

Here are your next steps:

• Implement a growth strategy that includes both vertical (current customers) and horizontal (new customers) strategies. Include new, innovative offerings and your current flagship products or services.
• Hire and appoint a key salesperson to champion the growth strategy and set goals and KPIs to make sure they clearly understand their tasks, objectives and what is needed for them to succeed.
• Continuously review your current product/service diversification with existing customers and innovate and update your offerings for existing and new customers. The most valuable companies are always updating and improving their deliverables.

Market Value Area Findings and Salability Recommendations:

Congratulations! You’re doing a great job diversifying your products or services and market presence. Continue improving your deliverables and build a process for becoming a strategic partner to your customers. Develop your salespeople by empowering them to champion these business development strategies and incentivize them with cash- or equity-based incentive plans to sell and service as if they were owners! This approach will create a highly profitable, self-sustaining company.

Your Cultural Readiness Score is out of 20.

Your Company is in the ^th Percentile.

Cultural Value Area Findings and Salability Recommendations:

Your company culture is not well known by your people and customers or reflected in your products and services. It is critical that you create a company culture that focuses on quality and the needs of your people. Great cultures reflect the personal values of the owners (business and philanthropic), and are well-documented and embraced by employees and customers alike. Determine if your values support the needs of your business, employees, and customers, and begin implementing steps to build a high-performance culture.

Here are your next steps:

• Evaluate your personal and professional values and determine what your company culture (or norms) should represent. This is the first step to creating a high-performing company.
• Determine your current company culture: What do your people and customers believe about the current norms, behaviors and how people are valued? This is critical to improving your culture.
• Hire a consultant experienced in building a high-performance and employee- centered culture – much easier said than done.

Cultural Value Area Findings and Salability Recommendations:

You have a passive company culture. Your company culture reflects your values to an extent, but your employees, suppliers, and customers don’t actively participate in bringing it to life. It is critical that you clearly define your company’s mission and purpose and equip your employees to carry them out. Your suppliers and customers, too, should embrace a culture that focuses on high quality, performance and the needs of its people and customers. Create practices that regularly celebrate the success of your business and your people (at least quarterly). This will motivate your employees to learn the needs of the business and do their part in building a highly valuable, transferable company.

Here are your next steps:

• Work with your managers and key employees to define, document and act out your company’s core values, mission, and norms.
• Plan quarterly events and off-sites to celebrate and reinforce your company’s goals and objectives, social norms, and values. This is where most companies fail and how you can thrive if you take the initiative.
• Reward your people and customers (monetarily and otherwise) for carrying out and embracing your company’s social norms, desired behaviors, and cultural objectives.

Cultural Value Area Findings and Salability Recommendations:

You have a strong, well-defined culture that is embraced by your employees, suppliers, and customers. Reinforce your company’s mission and purpose by refining its performance standards and celebrating its wins and its employees on a regular basis (at least quarterly). Your culture will help drive higher profits and ever-increasing commitment from your employees. It will also help you attract new, high-performing employees and allow you to sell or transition the business on YOUR TERMS!

Here are your next steps:

• Celebrate your existing values, mission, and social norms. They represent what the business stands for and why your best people stay.
• Reward your people and customers (monetarily and otherwise) for conducting and embracing your company’s values, mission, and cultural norms. Reward individually and collectively – you will be reinforcing why they are vested.
• Implement metrics for measuring better company performance as a result of having a strong and positive social culture – it always improves the bottom line!

Cultural Value Area Findings and Salability Recommendations:

Congratulations! Your company has a high-performance, employee-centered culture…exactly what buyers and internal successors desire. Continue reinforcing your company’s mission and purpose, defining its annual goals and performance standards, and regularly celebrating the success of the business and employees. Look to offer rewards and incentives to your top customers and find new ways to engage your community and philanthropic organizations. Your people and customers will become committed to your success, and you will create a highly profitable, sustainable, and valuable business!

1. Financial Salability

Your Financial Readiness Score is out of 20.

Your company is in the ^th percentile.

Financial Findings and Recommendations:

Your company does not have the necessary financial reporting, metrics, or expert resources to monitor free cash flow, employee performance, or the overall value of your business. It is critical that you retain outside experts (ASAP!) to help you build these financial metrics and systems to determine the business’s profitability, financial constraints, and financial readiness. These efforts will save the business during uncertain economic times and increase the future free cash flow of your business.

Here are your next steps:

• Define financial success for your business and determine its key performance indicators (KPIs).
• Hire an expert to help you create and measure all financial metrics and have them train someone to manage these standards and metrics.
• Determine how to measure and utilize free cash flow in your business – it’s the protein for building future transferable value.

Financial Findings and Recommendations:

Your business is barely meeting required financial accounting and reporting standards, and it is unlikely it would be able to accommodate a buyer’s due-diligence requests. Reassess your current financial and reporting systems and consult with an expert (ASAP!) to upgrade your financial metrics and reporting processes. Begin conducting annual valuations and cash flow projections to measure your ongoing financial health and future free cash flow.

Here are your next steps:

• Define financial success for your business and determine its key performance indicators (KPIs).
• Hire an expert to help you create and measure all financial metrics and have them train someone to manage these standards and metrics.
• Start measuring free cash flow in your business and look at valuing the company (obtaining an estimate of value) on an annual basis.

Financial Findings and Recommendations:

Your business has some systems which measure and monitor your business’s financial performance, but more time or modifications are needed to better determine the overall value of your business. Monitor free cash flow to determine annual increases in financial value. Also, make sure your financial metrics are directly tied to the company’s “Key Performance Indicators.” Continue using qualified financial experts where needed to give you reliable financial data. You are on the right track!

Here are your next steps:

• Review and revise your financial metrics as needed to make sure you are measuring and monitoring the correct financial indicators.
• Appoint someone in the business to work with your CPA/advisor to measure and monitor annual performance and free cash flow – it’s the protein for building transferable value.
• Determine how much annual free cash flow is needed to support your growth and strategic initiatives (new hires, acquisitions, marketing, new offerings, etc.).

Financial Findings and Recommendations:

Congratulations! You are in the top percentile of owners who have adopted the necessary financial metrics to grow the business and increase its free cash flow. You are on track to building a financially strong, self-sustaining company which will be extremely valuable to your future successor. Continue working with your business advisors and using your financial metrics to make smart business decisions. Keep up the great work!

2. Employee Salability

Your Employee Readiness Score is out of 20.

Your company is in the ^th percentile.

Employee Findings and Recommendations:

Your business is a revolving door when it comes to employees. As a result, it will be difficult to retain your people and it is likely that your staff is not very committed to the business. You will need to pay your people at or above market rates, offer them cash-based incentives (i.e., performance bonuses) to stay and keep them motivated to meet your expectations. Provide opportunities for raises, professional development and advancement, and if you decide these folks are essential, vest them as key employees (See our white paper on Key Employee Incentive Plans).

Here are your next steps:

• Identify your important and indispensable employees in the business.
• Clearly define their roles and set reasonable performance standards that can be accomplished and will positively impact the business.
• Define who is a key employee (most indispensable) and determine how to keep them motivated to stay in your business.

Employee Findings and Recommendations:

You have a handful of employees that are essential to your business, and you want to keep them motivated and retained. However, you do not have clearly defined performance standards and there is no objective basis for their compensation. Also, there is no clear plan for their development, advancement, or higher compensation and benefits. Your people could easily leave given the right mix of opportunities elsewhere. Set new performance standards, tie those standards to their compensation and benefits, and create a plan for your employees’ development. Vest them into the business!

Here are your next steps:

• Define the requirements of a key employee and determine what is required to vest and retain them in your business.
• Clearly define the roles for each position, determine which employees possess the skills for those roles, and set reasonable performance standards for each position.
• Connect employee performance standards to compensation and benefits and create a plan for each employee’s development and advancement.

Employee Findings and Recommendations:

You understand the value of key employees and a strong management team. Determine exactly what is required to become a key employee and make sure there are clearly defined performance standards for each job function. Create incentivized compensation packages (cash or equity) to retain your key employees and managers and provide them opportunities for advancement. All of these tasks should be clearly defined in your Employee Handbook and regularly reviewed with your employees. Overall, you are on the right track to building and retaining your most prized assets!

Here are your next steps:

• Define the eligibility for becoming a key employee for each position.
• Clearly define the roles, reasonable performance standards for each position and begin tying employee compensation and benefits to those standards.
• Determine what types of incentive compensation (performance bonuses) may be used to retain your key employees.

Employee Findings and Recommendations:

Congratulations! You are in the top class of companies that appreciate and invest in their most important asset…their key employees and managers. It is critical to define the standards for who is a key employee, review their performance standards and job functions annually and award them cash or equity if they exceed those standards. These key employees and managers will become dedicated to your success and become your “next level” leadership team, enabling you to exit on YOUR TERMS!

3. Strategic Salability

Your Strategic Readiness Score is out of 20.

Your company is in the ^th percentile.

Strategic Findings and Recommendations:

You do not have documented internal systems, processes, or procedures (SPPs), and you do most everything in the business. You need to learn how to delegate your operational tasks to your key and important employees. We recommend mapping out, what you do and how it can be delegated to others to implement the necessary SPPs. Begin by setting key performance indicators (both financial and organizational) and create a board of advisors to help identify and address future performance issues.

Here are your next steps:

• Establish new key performance indicators (financial and organizational) and use them to measure annual increases in your company’s value.
• Create a board of advisors consisting of internal key employees and outside professionals to identify and address key performance issues that can affect your company’s value.
• Create documented internal systems, processes and procedures for each area or function of your business (operations, marketing and sales, HR, and administration).

Strategic Findings and Recommendations:

Your company has internal systems, processes, and procedures (SPPs) but your people do not use them or know how. Review and update your SPPs and make sure your key performance indicators (KPIs) are achievable and measurable. Adopt processes that hold you and your employees accountable for using and documenting the SPPs and meeting your company’s KPIs. Also, implement a “business continuity plan” to determine who will manage and own the company in the event something happens to you.

Here are your next steps:

• Review, redefine and document all current SPPs for each business function in the company – assign a key employee to oversee and manage this process.
• Make sure that all SPPs are known by your employees and that they are incentivized (monetarily and otherwise) to use and improve all documented SPPs.
• Connect your SPPs to the company’s annual KPIs – make sure that the SPPs are required to accomplish your annual KPIs.

Strategic Findings and Recommendations:

You have created strong internal systems, processes, and procedures (SPPs), but they need to be tied to your key performance indicators (financial and organizational) to maximize the operational value of the business. Review and update your key performance indicators and make sure that you include your key employees, managers, and outside advisors in your decision-making process. Create a “business continuity plan” to protect the company’s current value and proprietary interests in the event something happens to you.

Here are your next steps:

• Periodically review and redefine your existing SPPs and make sure they are well- documented, known and used by your employees.
• Make sure your annual strategic goals are tied to the business’s KPIs and that the SPPs are directly tied to the KPIs – the SPPs need to be properly utilized to achieve your KPIs and strategic goals.
• Determine how to incentivize or reward (monetarily or otherwise) your employees to use and improve your current SPPs.

Strategic Findings and Recommendations:

Congratulations! Your internal operations are running well, and you are effectively monitoring the key areas of the business. Continue assessing your systems, processes, and procedures to make sure they are efficient and include all necessary key employees. Manage your performance indicators (financial and operational) to make sure you are getting the data you need to make good strategic decisions. Involve your managers and trusted advisors in your strategic decision-making process and look for opportunities to delegate to others. Lastly, create a “business continuity plan” to protect the company’s current value and determine its future management and ownership in the event something happens to you.

4. Market Salability

Your Market Readiness Score is out of 20.

Your company is in the ^th percentile.

Market Findings and Recommendations:

You need to diversify your current products or services, the markets you sell to and the kinds of customers you serve. Find ways to upsell new products or services to existing customers while also growing your customer base. Implement a growth strategy to increase profits with your current customer base and each new customer area. You need to increase your Market Readiness by diversifying your products or services and the markets you serve.

Here are your next steps:

• Determine your flagship products or services and your current level of market/customer diversification – if possible, hire an expert to conduct this analysis.
• Determine which products and services generate the highest profitability and which are best positioned to be upsold to current customers and or sold in new markets.
• Hire an outside marketing firm to consider all potential solutions to increase your market share and diversification and build a growth strategy.

Market Findings and Recommendations:

Your products or services are not well-diversified, and your market concentration is too heavy (most of your revenue comes from a few customers). Implement a growth strategy to sell new or complementary products or services to your existing customers and your current products or services into new markets. Train your salespeople to lead this effort and incentivize them to stay in the business. You can increase your Market Readiness if you kick it into gear!

Here are your next steps:

• Evaluate and address your current diversification – both products/services and with customers. You do not want more than 15-20% of your revenue from one customer, or more than 50% of customer revenue being generated from one product or service.
• Evaluate potential growth strategies – vertically with existing customers and horizontally with new customers. Hire a marketing company or consultant to lead this program.
• Identify and begin training a key employee (salesperson) to champion this program. Look at unique ways to incentivize and reward them.

Market Findings and Recommendations:

You are on the right track! Continue diversifying your products or services while seeking new complementary markets for your existing products or services. Formalize a growth strategy and empower your key employees (salespeople) to champion this effort by incentivizing them to increase sales, revenue, and profitability. Continually develop your sales team, teach them to cross-sell so that they are familiar with all products and services. Vest them into the company – they are the gas pedal to your future enterprise value!

Here are your next steps:

• Implement a growth strategy that includes both vertical (current customers) and horizontal (new customers) strategies. Include new, innovative offerings and your current flagship products or services.
• Hire and appoint a key salesperson to champion the growth strategy and set goals and KPIs to make sure they clearly understand their tasks, objectives and what is needed for them to succeed.
• Continuously review your current product/service diversification with existing customers and innovate and update your offerings for existing and new customers. The most valuable companies are always updating and improving their deliverables.

Market Findings and Recommendations:

Congratulations! You are doing a great job diversifying your products or services and market presence. Continue improving your deliverables and build a process for becoming a strategic partner to your customers. Develop your salespeople by empowering them to champion these business development strategies and incentivize them with cash- or equity-based incentive plans to sell and service as if they were owners! This approach will create a highly profitable, self-sustaining company.

5. Cultural Salability

Your Cultural Readiness Score is out of 20.

Your company is in the ^th percentile.

Cultural Findings and Recommendations:

Your company culture is not well-known by your people and customers or reflected in your products and services. It is critical that you create a company culture that focuses on quality and the needs of your people. Great company cultures reflect the personal values (business and philanthropic) of their owners and are embraced by their employees and customers. Determine if your values support the needs of your business, employees, and customers, and begin implementing steps to building a high-performance culture.

Here are your next steps:

• Evaluate your personal and professional values and determine what your company culture (or norms) should represent. This is the first step to creating a high-performing company.
• Determine your current company culture: What do your people and customers believe about the current norms, behaviors and how people are valued? This is critical to improving your culture.
• Hire a consultant experienced in building a high-performance and employee- centered culture – much easier said than done.

Cultural Findings and Recommendations:

Your company has a passive culture. Your company’s culture reflects your values, but your employees, suppliers, and customers do not actively participate in bringing it to life. It is critical that you clearly define your company’s mission and purpose and equip your employees to carry them out. Your suppliers and customers should also embrace a culture that focuses on high quality, performance and the needs of its people and customers. Create practices that regularly celebrate your business and people (at least quarterly). This will motivate your employees to learn the needs of the business and build a highly valuable, transferable company.

Here are your next steps:

• Work with your managers and key employees to define, document and act out your company’s core values, mission, and norms.
• Plan quarterly events and off-sites to celebrate and reinforce your company’s goals and objectives, social norms, and values. This is where most companies fail and how you can thrive if you take the initiative.
• Reward your people and customers (monetarily and otherwise) for carrying out and embracing your company’s social norms, desired behaviors, and cultural objectives.

Cultural Findings and Recommendations:

You have a strong, well-defined culture that is embraced by your employees, suppliers, and customers. Reinforce your company’s mission and purpose by refining its performance standards and celebrating its wins and employees on a regular basis (at least quarterly). Your culture will help drive higher performance, profits, and an ever-increasing commitment from your employees. It will also help attract new, high-performing employees and allow you to sell or transition the business on YOUR TERMS!

Here are your next steps:

• Celebrate your existing values, mission, and social norms. They represent what the business stands for and why your best people stay.
• Reward your people and customers (monetarily and otherwise) for conducting and embracing your company’s values, mission, and cultural norms. Reward individually and collectively – you will be reinforcing why they are vested.
• Implement metrics for measuring better company performance as a result of having a strong and positive social culture – it always improves the bottom line!

Cultural Findings and Recommendations:

Congratulations! Your company has a high-performance, employee-centered culture…exactly what buyers and internal successors desire. Continue reinforcing your company’s mission and purpose, defining its annual goals and performance standards, and regularly celebrating the success of the business and employees. Offer rewards and incentives to your top customers and find new ways to engage your community and philanthropic organizations. Your people and customers will become committed to your success, and you will create a highly profitable, sustainable, and valuable business!