Business Health Check
A Business Quiz without answers
Do we know what we don't know?
Or, better questions give better answers
Or, even a fool can pose a question that a wise man cannot answer
Or, the wider the net, the more varied the catch
Or, ignorance is no excuse
Introduction
One always hopes that no individual or group of individuals follow the slogan often found in many offices:
“I used to think that I was conceited, but now I am just perfect.”
Sadly, we know that it is common – or perhaps too common. Though we can take some satisfaction that history offers us that such hubris (insolent pride or security) is nearly always followed (eventually) by nemesis (retributive justice), it is but little comfort to those that are harmed, to a greater or less extent, by such attitudes. The reality should be that provided by the Avis statement:
“We're number two and we try harder”
Every organisation is number 2 in some, or all, areas of their operations. The issue is to define where the organisation can most benefit from investment to build or further enhance competitive advantage.
Flexibility and a willingness to change is obviously vital – summarised by the famous (though allegedly apocryphal) quotation of Keynes, the economist:
“When facts change, I change my mind. What, sir, do you do?”
As is the potential for improvement through knowledge:
“A wise man will make more opportunities than he finds.” – Bacon
But continually changing direction obviously has it own dangers – drifting ships hit the rocks, and knowledge for the sake of knowledge, though attractive to some, does not pay the bills. Fitting such flexibility and need to change within a formal structure is crucial – creating a framework which knows where it is going but can adapt:
“Failing to plan is planning to fail”
The Ibis approach
Ibis creates a framework, the planning platform, within which best practice and continual improvement can be applied in a systematic fashion. Within this platform one can ask the three key planning questions for the established business:
Where are we?
Where do we want to be (and when)?
How do we get there most cost effectively?
Or three key planning questions for the start up/ early stage business:
What is the real market opportunity?
Can the enterprise fully meet these product/service requirements over the short, medium and long term?
Does the required investment meet cash flow/profit/ risk requirements?
From the answers one can then (hopefully) achieve the necessary change, and build on a gradual basis a more successful and effective enterprise, through what is often called mosaic management – small pieces of a picture put in place square by square. Above all, one should try to learn from mistakes – both within your own organisation and elsewhere:
"To err is human, to repent divine; to persist devilish." Benjamin Franklin
“Those who forget the past are doomed to repeat it” Santayana
This set of topics does not have any “correct” answers, because these will vary from organisation to organisation, and from month to month. They are there to help the enterprise think about its current position, and whether improvements can be achieved, and how they will be implemented.
Surveys of MBA students in their final year find that they are not aware of at least 50% of the entire range of topics listed below and their relevance to business operations – typical business practitioners only those that are relevant to their specific operational areas. Each of these topics can raise thoughts about how current operations are managed and whether there are possible improvements.
“The most profound answer may develop from the most mundane question” George Bernard Shaw
Analysis, options, implementation
Implementation is at least as important as analysis – many would think more so. Completing tasks quickly and effectively moves the organisation along in a cascade approach and motivates staff towards further goals and objectives.
“When the army engages in protracted campaigns, the resources of the state will not suffice. When your army is exhausted, your morale sinks and your treasure is spent, rulers of other states will take advantage of your distress and act. Then even though you have wise counsellors, none will be able to make good plans for the future. Thus, though we have heard of excessive haste in war, we have not yet seen a clever operation that was prolonged”. Sun Tzu
Ibis support
The topics are all described in more detail in Ibis summary notes, running to over 150,000 words, which are part of Ibis business plan training or Ibis business plan development.
Topics
Topics obviously over-lap, or are complementary. Most topics can then be further sub-divided. Listed in alphabetical order, and not claimed to be complete, or weighted for importance.
A
Abacus principle
Abilene paradox
Absenteeism
Accounting assumptions
Accounting system
Accrual accounting
ACORN
Action planning
Activity based costing
Administrative expense ratio (AER)
Administration plan
Administration strategy
Addressable advertising
Adstock
Advertising awareness
Advertising decay rates
Advertising distribution
Advertising effectiveness
Advertising/ price interaction
Advertising sales
Advertising threshold
Agency theory
Aggregate demand
Agents
Algorithm aversion
Alphabet soup
Alternative dispute resolution (ADR)
Ambush marketing
Anchoring
Analogy
Ansoff matrix
Anti-fragility
Appeals procedure
Applications
Appraisal
Apprenticeship
Arbitration
Articles of Association
Artificial intelligence (AI)
Aspirational marketing
Asset credit review
Asset management software
Asset register
Assumptions
Atomisation
Attention, interest, demand, action (AIDA)
Attention span
Audit
Augmented reality
Authority/ responsibility
Automation
B
Back order policy
Bad debt ratio
Balance sheet
Balanced scorecard
Barriers to entry
Batting average
Baumol’s rule
Beacon marketing
Bean counter philosophy
Behavioural economics
Behaviourgraphics
Benchmarking
Benefit sharing pricing model
Beyond budgeting
Big data
Bionics
Black Swan theory
Blame game
Blank sheet planning
Bloatware
Boiling frog syndrome
Bonus systems
Bore out
Boston Consulting Group (BCG) matrix
Box canyon thinking
Break even value (BEV)
Brainstorming
Brand empathy value
Brand loyalty
Brand personality
Brand premium
Branding
Break even value
BEV/ EBITDA ratio
Bring your own devices (BYOD)
Broken window theory
BS index
Budget ratio
Budgeting
Burst vs drip advertising
Bush principle
Business cycle
Business model
Business plan structure
Business planning
Business platform
Business process management software (BPMS)
Business process re-engineering (BPR)
Business monitoring
Business start up
Buygrid model
Buyers
Bystander effect
C
Camel effect
Can opener assumption
Cannabilisation
Canons of rhetoric
Canute’s Law
Capacity utilisation
Capex ratio
Capital allocation ratio
Capital productivity ratio
Capital cycle
Capital velocity
Capture theory
Cascade investment policy
Cash accounting
Cash flow
Cash flow return on total investment (CFROI)
CASTS
Catastrophic failure
Category error
Challenge
Change tunnel
Chaos theory
Chesterton’s fence
Circle of competence
Clausewitz principle
Clean earnings
Cloud computing
Clustering
Coasting
Cobra effect
Cognitive dissonance
Cognitive distortion
Comfort zone
Commitment device
Commoditisation
Common good
Communicability
Communication
Community marketing
Comparative advantage
Compatibility
Competitive advantage
Competitive analysis
Competitive bidding
Competitive bidding ratio
Competitive score
Competitive trends
Complaints policy
Complexity
Compliance software
Computer aided design computer aided manufacture (CADCAM)
Computerised maintenance management system (CMMS)
Concept Fan
Conjunction fallacy
Conservative accounting principles (CAP) score
Consolidation
Constant exchange rate (CER)
Contagion theory
Contract hour/ working hour ratio
Contingency plan
Contract of employment
Convergence theory
Code of conduct
Communication
Compliance
Compressive buckling
Confirmation/ Disconfirmation bias
Conformity effect
Consensus
Core competence
Core/ non-core employee ratio (CNCER)
Corporate governance
Corporate governance achievement level
Corporate vertical marketing system (CVMS)
Cornford law of inaction
Cornford wedge
CORRUPT
Cost centre
Cost leadership
Cost management policy
Cost of finance
Counterfeiting
Country spread ratio
Covenants
Creative accounting techniques (CAT) score
Creativity
Creditor ratio (CR)
Credit management
Current ratio (CR)
Critical mass
Critical path
Critical ratio
Critical success factor (CSF)
Crowd funding
Culture
Customer life value (CLV)
Customer investment review (CIR)
Customer investment return
Customer panel
Customer relationship management (CRM)
Customer satisfaction survey
Customer spread ratio
Customer support
Customer transition rate
D
Darwinian strategy
Data lake
Data mining
Data protection
Data storage
Dator's First Law
De Bono’s stages of analysis
Debt age
Debt allocation ratio
Debtor ratio (DR)
Decision fatigue
Decision grid
Decision making
Decision making software (DMS)
Decision tree
Deferred compensation
Defining advertising goals for measured advertising results (DAGMAR)
Delphi
Deming rules
Depreciation
Design for assembly (DFA)
Design for competitive advantage (DCFA)
Design for contingency (DFC)
Design for disassembly (DFD)
Design for energy efficiency
Design for fail safe (DFSS)
Design for operational efficiency
Design for service (DFS)
Design for synergy (DS)
Design for upgrade (DFU)
Development training
Diffusion analysis
Digitization
Dilbert principle
Directed strategy
Disciplinary code and grievance procedure
Discipline
Discontinuity
Discounted cash flow (DCF)
Discounting
Discretionary expenditure
Discrimination
Distant data capture
Distortion
Distributed control systems
Distribution channels
Distributors
Diversity index
Diversification
Dividend policy
Divisibility
Documentary credits
Doublethink
Downing-Kruger effect
Due diligence
Dunbar number
Dynamic pricing
E
Earliest event time (EET)
Earnings before interest, tax, depreciation, amortisation (EBITDA)
Earnings per share (EPS)
Economic cycle
Economic value added (EVA)
Effective head count
E-enablement
Efficiency wage
Eight “R”'s of service marketing
Eight “S” of organisational dynamics
Eighty five percent rule
Electronic data interchange (EDI)
Electronic funds transfer (EFT)
Elevator pitch
Elliot wave
Emotional quotient (EQ)
Emergent strategy
Emperor's clothes syndrome
Employee satisfaction scheme
Employee suggestion scheme
Employment contracts
Empowerment
Energy efficiency ratio
Engel, Kollat & Blackwell, (EKB) model
Enterprise growth/ market growth ratio
Enterprise resource planning (ERP)
Enterprise value/ earnings before interest, tax, depreciation, amortisation (EV/EBITDA)
Entrants
Environmental mapping
Environmental monitoring
Economic order quantity (EOQ)
Equal opportunities
Equity assets ratio (E/A)
Equity bonus rate
Ethics
Exaggeration
Exit interview
Exit planning
Expectations/ fulfillment gap (EFG)
Expected utility value (EUV)
Experience curve
Expert systems
Exponential smoothing
Extranet
F
F score
Face saving formula (FSF)
Facilities management
Facilities management software (FMS)
Fail safe
Fear, uncertainty, doubt (FUD)
Fog computing
FOMO
First in, first out (FIFO)
Finance plan
Finance profile
Finance strategy
Financial accounting
Financial headroom
Financing options
First mover advantage
Five whys?
Fixed costs
Flexible manufacturing system (FMS)
Flexible working
Focus
Forecast case
Forecast grid
Form fatigue
Formal networks
Franchising
Fraud
Free cash flow (FCF)
Free cash flow per share (FCFPS)
Free float
Frenmity
Fringe benefits
Frugal manufacturing
Functional overlap ratio
Fund raising strategy
Future proofing
G
Galapagos trap
Gambler's fallacy
Game theory
Gamification
Gap analysis
Garbage in, garbage out (GIGO)
Gatekeeper
Gearing (or debt equity ratio)
General Electric (GE) matrix
Generally accepted accounting principles (GAAP)
Generational spending wave
Geofencing
Getty's law
Gibson’s Paradox
Gladwell theory
Glass ceiling
Globalisation
Gold rule
Goldbricking
Golden circle
Golden parachute
Golden rule
Golden scenario
Goodwill
Grandfather’s axe principle
Grants
Gravity models
Greek gifts
Gresham's law
Gross misconduct
Gross profit
Group utility
Guardians
H
Habit stacking
Haldane's dictum
Harassment
Hawthorne effect
Hazard analysis critical control point (HACCP)
Headless chicken reaction (HCR)
Health and safety
Health management
Hedging
Herd instinct
Heterarchy
Holacracy
Historic pricing
Homeostasis
Human capital pool (HCP)
Human resource management (HRM)
Human resource management systems (HMRS)
Hunger marketing
Hurdle rate
Hybrid cloud
I
Ideas day
Impact analysis
Implementation options
Implementation option risk
Industrial cooperation agreement (ICA)
Industrial internet
Inflation
Influencer marketing
Information flow map
Information overload
Information technology (IT) plan
Information technology platform
Information technology (IT) strategy
Induction training
Industrial relations
Information overload
Initial public offering (IPO)
Insolvency
Insurance
Integration ratio
Integrators
Interconnectivity
Interconnectivity ratio
Interim management
Internal competition
Internal marketing
Internal rate of return (IRR)
Internal service satisfaction levels
International financial reporting standards (IFRS)
International product control
International product life cycle (IPLC)
Internships
Internet of things (IOT)
Interest cover
Intranet
Intrapreneurship
Invisible hand theory
Inventory management
Investment case summary
Investment appraisal
Investment centre
Intellectual property rights management (IPR)
ISO 9000
ISO 14000
J
James' rule
Jevons paradox
Job content
Job description
Job rotation
Job share
Jobs’ rule
Joint planning
Joint venture (JV)
Journey planning
Judgement extremism
Just in time (JIT)
K
Kaizen
Kalina cycle
Kanban
Kindelberger’s maxim
Kinesics
Keep it short, simple (KISS)
Key fact recall (KFR)
Knowledge centre
Knowledge management
Key performance indicators (KPI)
Kondryatev cycles
Kress cycle
L
Labour turnover
Last war planning
Latest event time (LET)
Law of diminishing returns
Law of first price
Law of hierarchy
Law of Large Numbers
Law of mediocre progression
Law of Triavility
Law of unintended consequences
Leadership
Leadership principle
Leadership psychosis
Lean manufacturing
Learning curve
Learning organisations
Learnt helplessness
Legacy issues
Lettuce letter
Leveraged buy-out (LBO)
Licensing
Life cycle analysis
Life style affirmation
Life style business
Likert scale
Lollapalooza effect
Long’s Law
Loss leader
Low hanging fruit
M
M -score
Machiavelli's maxim
Machine learning
Maintenance training
Malware
Management accounting
Management accounts
Management buy-in (MBI)
Management buy-out (MBO)
Management by exception (MBE)
Management by memo (MBM)
Management by objectives (MBO)
Management by walking about (MBWA)
Management information system (MIS)
Management information system (MIS) functionality index
Manpower planning
Materials requirement planning (MRP)
Manpower strategy
Marginal profitability
Market drivers
Market driver alignment
Market dynamics/ capital allocation ratio
Market entry methodology
Market entry strategy
Market growth/business position matrix
Market penetration
Market research policy
Market share
Market size assessment – TAM, PAM, RAM, CAM
Market skimming
Marketing myopia
Marketing plan
Marketing strategy
Maslow's hierarchy
Materials requirement planning (MRP)
Mathematical modeling
Matrix management
Max/min ratio
Me too
Mean reversion
Media options
Media plan
Meeting addiction syndrome
Meeting management
Meme
Mentoring
Mergers and acquisitions policy
Middle tree
Milestones
Mind map
Mission creep
Mistake acceptance
Moltke matrix
Money, authority, need (MAN)
Monte Carlo analysis
Monte Carlo fallacy
Moonlighting
Moore's Law
More’s principle
Moral hazard
Mosaic management
Motivation
Murphy's Law
Mushroom principle
Multiple lock protocol
Myers-Briggs Type Indicator (MBTI)
Mystery shopper
N
Naïve realism
Narcissism of small differences
Nash equilibrium
Negotiation
Nepotism
Net present value (NPV)
Net profit
Networking
Noah's rule
Non-disclosure agreement (NDA)
Not invented here syndrome (NIH)
Nudge theory
Null hypothesis
O
Objectives
Obsolescence review
Obsolescent stock policy
Occam's Razor
OCEAN
One hundred days
Operant conditioning
Operating, financial review (OFR)
Operating leverage
Operations research
Opportunity cost
Opportunity to see (OTS)
Option overload
Order processing
Organisational buying behaviour
Organisational dynamics
Organisational paralysis
Organogram
Outsourcing
Outward thinking
Overhead allocation
Overton window
Overtrading
P
Packaging assessment
Palchinsky principles
Pandora principle
Paradigm planning
Paranoia
Paternalism
Pareto's law
Paris syndrome
Parkinson's Law
Partnering
Pascal's wager
Payback horizon
Pay per click (PPC) software
Payment systems
Payment terms and conditions
Peer to peer lending
Peltzman effect
Penalty clauses
Pencil whipping
Pension management
Perceived risk
Period of grace
Permission marketing
Personal development plans (PDP)
Personbyte
Peter Principle
Phishing
Piggy back
Planning cycle
Planning effectiveness review
Planning horizon
Planning platform
Plant age ratio
Points of difference (POD) score
POLITICS
Politics, economics, social factors, technology (PEST)
Pomodoro technique
Ponzi scheme
Portfolio analysis
Portfolio theory
Postponement
Potemkin village
Pottery barn rule
Premises certification
Premises cost market cost ratio
Premises review
Presentation rules
Presenteeism
Price earnings (P/E)
Price earnings growth (PEG)
Price elasticity
Price index
Price leader
Price point
Price per click (PPC)
Pricing bias
Pricing policy
Pricing power
Prioritisation
Prisoner's dilemma
Product age profile
Product/ service benefit
Product certification
Product development
Product development plan
Product development strategy
Product investment review
Product life cycle (PLC)
Product management
Product pathway
Product portfolio analysis
Product portfolio management (PPM)
Product/ service relaunch
Product/ service safety
Product spread ratio
Product stretch
Product testing policy
Product viability analysis (PVA)
Production efficiency ratio
Production life cycle management (PLM)
Production plan
Production strategy
Productive hours
Profit and loss
Profit impact of market strategy (PIMS)
Programme accounting
Programme evaluation review technique (PERT)
Project management
Project ratio
Project risk management
Project risk ratio
Prospect theory
Protocol for NPD (new product development)
Protocol score
Provocation
Proximal/distal (PD) analysis
Psychometric testing
Public relations
Purchase portfolio
Purchasing management
Pygmalion effect
Q
Quality circles
Qualitative forecasting
Quantitative analysis
Quantitative forecasting
Queuing theory
Quick ratio
R
Rams rules
Random inspection
Range sale %
Ranke's syndrome
RASCI
Reactance
Reality check
Recapitulation
Reconciliation
Recent Events Syndrome
Recruitment
Recruitment appraisal
Red Queen hypothesis
Reductio ad absurdum
Reference sale
Region investment review
Relative advantage
Repeat business ratio
Repetitive strain injury (RSI)
Replacement costing
Replication theory
Requisite hierarchy
Responsive process management (RPM)
Retention plan
Return logistics
Return on capital employed (ROCE)
Return on plant (ROP)
Return per square metre (RSP)
Revaluation accounting
Revenue centre
Revenue recognition
Reversal
Reverse engineering
Rice-Davies explanation
Risk indicator
Risk management
Risk multiplier
Risk profile
Risk weighted return (RWR)
Role play
Rule of limited promises
Rule of ten
S
S-curve
Sales channels
Sales channel crossover ratio
Sales contract terms
Sales effectiveness
Sales expense ratio (SER)
Sales management
Sales plan
Sales process
Sales promotion plan
SATURNS
Scalability
SCAMPER
Scenario building
SCORE
Search engine optimisation (SEO)
Seasonal affliction disorder (SAD)
Seasonality
Seasonality ratio
Secrecy
Segmental leadership
Segmentation
Semi-variable costs
Sensitivity analysis
Serendipity
Seven generic strategies
Seven management sins
Seven rules of intervention
Seven times rule
Share buy-back
Share of voice
Shareholder management
Shareholder value
Shareholders
Shareholders agreement
Shared values
Shrinkflation
Sick building syndrome (SBS)
Simulation
Sin score
Single Factor Block Theory
Six dimensions of product success
Six Hats
Six “O” of segmentation
Six Sigma
Six steps of argument
Skills
Skills distribution
Skyscraper index
Social contract
Social media
Social responsibility
Socratic Method
Software alignment ratio
Source and applications of funds
Space utilisation
Span of control
Spanish practices
Special units
Spiral of silence
Sponsorship
Standard operating procedure (SOP)
Statistical process control (SPC)
Staff
Staff/line ratio
Staff rotation
Stagegate
Stakeholders
Standardisation
Standing man principle
STARPIT
Statistical analysis
Status fear
Stein's law
Step investment requirements
Stock turn ratio (STR)
Standard costing
Strategic analysis
Strategic business unit (SBU)
Strategic gap
Strategic options
Strategic, operational, tactical (SOT) decisions
Strategic risk assessment
Strategic risk multiplier
Strengths, weaknesses, opportunities, threats (SWOT)
Stress
Steyre’s law
Structure
Style
Substitutes
Substance
Successes, failures, lessons learnt
Succession planning
Sunk capital
Supplier review
Supplier spread ratio
Suppliers
Supply chain management (SCM)
Support
Survival and recovery planning
Synectics
Synergy
Synergy ratio
System 1/ 2 thinking
Systems
Systems analysis
T
Tactical exercise without troops (TEWT)
Tax charge
Tax management policy
Taylor rules
Team building
Technology audit
Technology grid
Technology transfer
Telecommunications policy
Teleworking
Temporary staff ratio
Ten Commandments
Territorial imperative
Testing
Time based competition (TBC)
There is no alternative (TINA)
Thermal storage
Threats, opportunities, weaknesses, strengths matrix (TOWS)
Three dimensional (3D) printing
Three methods of persuasion
Timelines
Time management
Time series analysis
Time study
Total preventative maintenance (TPM)
Total quality control (TQC)
Trade association support
Trade distribution agreement (TDA)
Trade offs
Trading blocs
Training needs analysis
Transfer pricing
Transition plan
Trolls
Two letters rule
Type 1 or 2 personality
U
Ultimatum game
Uncertainty ratio
Unique selling proposition (USP)
Umbrella marketing
Upcycling
Upgrade effect
Upper tree
Upside/downside
Useful life index
Utility
Utility curve
Utility cost/ market cost ratio
V
VALS
Valuation (asset, business)
Value chain
Value reference model (VRM)
Vampire devices
Variable costs
Vendor ranking
Vendor rating
Venn diagram responsibility overlaps (VDRO)
Venture capital
Vertical integration
Vertical tribes
Viral marketing
Virtual office
Virtual reality
Vision statement
Voice dynamics
Volatility index
W
Wages ratios
Walking through
Warranties/ guarantees
Warehouse management
Waste management
Web dashboard
Web hosting
Web management
Web strategy
Week activity report (WAR)
West’s Law
Wheel of business
Whistleblower policy
White anting
White spaces
Wish list
Wishful thinking
Withdrawal
Work study
Working capital ratio (WCR)
Working conditions
X
X/Y theory
Z
Z scores
Zelig's Syndrome
Zero based budgeting
Zero hours contracts
The Ibis reference manual
All these business health check items have been incorporated in a reference manual of over 150,000 words which is continually updated.
This manual is provided as part of Ibis business plan training and business plan development, with participants receiving updates when completed via e-mail for addition to their existing manual.
Contact Ibis for details of training and business plan development.
Integrating business health check concepts into company operations
A development of the Ibis standard operating procedure SOP programme has been to include “useful concepts” as part of the introduction to the SOP. This has been found to provide quick and effective training and strengthens the SOP in identifying links with other material and the position of the SOP within overall company operations.
An example is the golden circle with links to other topics emphasised in bold:
The golden circle is the graphical description of best practice in strategic implementation, and is central to the development of a planning platform. It consists of an inner circle of consolidation or cost cutting, with an outer circle of market penetration, market development and product/ service development. The logic is that companies should have a continuing cost cutting programme around which products or services grow volumes in home market(s), which generates investment for international or regional development, which in its term generates revenues for new product/ service development, which are then sold to the home market, and so on around the circle. This provides focus – the enterprise builds its core competence and levers this expertise into more and more markets and more and more products/ services, with a greater ability to achieve overall strategy through adequate investment.
Obviously the balance between the the various strategies will depend on the stage in the planning horizon, the strategic gap, strategic risk within the overall portfolio theory, the set of objectives created (including where relevant the balanced scorecard), and rates of return through investment appraisal.
More information on the way in which Ibis can contribute to your business plan development is provided at Advantage Ibis
More information on the Ibis approach is also available on the FAQ page..