In business, we are always striving to do better – to improve our results and profitability – and to find that magic nugget that makes it all happen.  Sometimes this comes easily and sometimes not so much.  More often then we like to admit, there is more luck than strategy in play.  This is regrettable, as luck is like the lottery.  The lottery can have a fabulous payout, but there are usually very few winners.  Tools like Value Builder assessment offered by The Osborne Group assist in the development of the much needed strategic thinking to help business managers step back and focus on key elements that are proven to add value to businesses.

It won’t be the quick win like the lottery, but it can help establish a foundation for solid growth and increased business value.

The Value Builder assessment looks at eight key attributes, all of which play an integral part in the success of any business.  For example, The Hub and Spoke attribute questions how well your business would perform if you, the owner, were unable to work for three months or more.

The common dilemma is that the owner is critical to the operation of the business.  Their presence is considered essential to the day to day success of the business.   This individual, or a small group of individuals, are often the founders and intelligence of the initial business idea and also most often the business developer.  Success is a result of their insight, initiative and focus.  Others in the organization look to the owner for direction and sometimes only provide minimal input. A strong leader can be a great value.

But it is a double edged sword.  The dependency of the business on the owner can also put increased risk on the business should this key individual be away and need others to take on the role.  For the organization to be strong in the long term, there needs to be strength throughout the organization, not just in one or two individuals.

A strategy to minimize the concentration of business intelligence is critical and a concerted effort is needed to put that in place.  It can be done, without minimizing the value of the owner, but rather to move the intelligence from a few key individuals to a broader base within the company itself.  Recognizing the issue, and the extent of the concentration of intelligence, is the first step in moving the attribute from a critical risk to a key success factor.

Hub and Spoke is just one key success factor rated in the Value Builder questionnaire – a 15-20 minute on-line exercise that will generate a detailed, customized report of how your business value compares to some 1,700 others.  Answer the questionnaire at http://visit.osborne-group.com/.  An Osborne Group Value Builder expert will give you your detailed and individual results during a complementary consultation.

Ken Goodwin

Financial Management