BAQ Performance

Business Assessment Questionnaire – Performance

    Does the organization systematically measure actual performance vs. goals/budgets?

    Does an internal analysis identify key strengths and weaknesses in the organization?

    Does the analysis include profitability factor trends, e.g., after- tax earnings, return on assets, cash flow?

    Does the business set clearly defined and measurable performance standards for each plan element?

    Does the organization review monitoring data regularly, and revise strategic decisions as appropriate?

    Do you benchmark your performance indicators against industry standards?

    Do you know and track your key performance indicators?

    Are the business’ performance and operational characteristics compared with those of competitors?

    Do you know your gross profit margin?

    Do you know your net profit margin?

    Do you know your current ratio?

    Note that #1 means you strongly agree,

    #2 means you somewhat agree,

    #3 means you neither agree nor disagree,

    #4 means you somewhat disagree and

    #5 means you strongly disagree.

    We strive for efficiency and simplicity

    Metrics are key to guiding the business

    We track gross profit, costs, productivity, etc. by job and/or product line

    We accept only customers and/or orders that will be profitable

    We try to keep fixed costs as low as possible

    We maintain excellent relationships with our vendors and get competitive pricing from them

    There are employee incentives based on profit margins and productivity

    The organization develops and uses an organized system for monitoring how well performance standards were met

    We track employee and equipment efficiency to minimize costs and increase profits

    We pass all possible costs, such as delivery on to customers

    We consistently compare our costs, profitability, and key ratios with industry averages

    We utilize analytic tools and technology such as computers, spreadsheets, accounting/finance principles, and economic theory to plan, organize, and allocate personal resources

    We prefer variable costs over fixed costs