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Worksheet - Evaluating Management Performance 1. We operate with an up-to-date business plan which includes: A. One and three year projections. [ ] YES [ ] NO B. A capital budget. [ ] YES [ ] NO 2. We operate with an annual marketing plan that includes: A. Precise sales and profit goals and timetables. [ ] YES [ ] NO B. Strategies and tactics for the next three years. [ ] YES [ ] NO C. Budgets, Forecasts, and Benchmarks. [ ] YES [ ] NO D. A tentative sales plan. [ ] YES [ ] NO E. The demographics of our target markets. [ ] YES [ ] NO F. A thoughtful definition of the markets we serve. [ ] YES [ ] NO G. A definition of the needs/wants our products and services fill. [ ] YES [ ] NO H. An analysis of the growth potential of our markets. [ ] YES [ ] NO I. A competitive analysis. [ ] YES [ ] NO J. A definition of our “Unique Selling Proposition. [ ] YES [ ] NO K. Projections for other products or services that could be developed. [ ] YES [ ] NO L. Timetables for research and development. [ ] YES [ ] NO 3. We use monthly budgets and statements that include: A. Thorough and up-to-date records. [ ] YES [ ] NO B. Cash flow budget. [ ] YES [ ] NO C. Profit and Loss (Income) Statements . [ ] YES [ ] NO D. Balance sheet [ ] YES [ ] NO E. Deviation analysis [ ] YES [ ] NO F. Ratio analysis [ ] YES [ ] NO G. Standard cost comparisons [ ] YES [ ] NO H. Cash reconciliation. [ ] YES [ ] NO 4. We have developed an information base that allows us to: A. Keep track of new developments in the industry. [ ] YES [ ] NO B. Obtain and study key trade information. [ ] YES [ ] NO C. Understand what “state of the art” means in this business. [ ] YES [ ] NO D. Provide customers with the best available information pertaining to our products and services. [ ] YES [ ] NO E. Keep all our employees adequately informed. [ ] YES [ ] NO 5. The business is properly capitalized since: A. Capitalization is based on worst case planning. [ ] YES [ ] NO B. We have emergency funds (or access to them). [ ] YES [ ] NO C. We have discussed this with our commercial banker. [ ] YES [ ] NO 6. I understand the value of the business because I have made use of:A. Professional appraisers. [ ] YES [ ] NO B. Present value methods to evaluate terms. [ ] YES [ ] NO C. Professional tax planning counsel. [ ] YES [ ] NO D. Accurate and timely financial information. [ ] YES [ ] NO 7. We strive to improve production, quality and operations by: A. Keeping the plant in top condition. [ ] YES [ ] NO B. Maintaining safe conditions. [ ] YES [ ] NO C. Establishing high standards. [ ] YES [ ] NO D. Standing behind our products and services. [ ] YES [ ] NO E. Not tolerating shoddy performance. [ ] YES [ ] NO F. Working for consistency. [ ] YES [ ] NO G. Using our company’s “look” as a statement to our markets. [ ] YES [ ] NO 8. Personnel decisions are based on humane, carefully considered policies that include: A. Checklists to make sure objectives are clear. [ ] YES [ ] NO B. Communication, to make sure objectives are understood. [ ] YES [ ] NO C. Written job descriptions. [ ] YES [ ] NO D. Regular progress and performance evaluations. [ ] YES [ ] NO E. Fair hiring practices. [ ] YES [ ] NO F. Fair wage scales. [ ] YES [ ] NO 9. As for my own personal managerial skills, I work hard to: A. Develop my problem-solving abilities. [ ] YES [ ] NO B. Always stay calm. [ ] YES [ ] NO C. Be objective. [ ] YES [ ] NO D. Avoid investments in my own ego. [ ] YES [ ] NO E. Listen to my employees. [ ] YES [ ] NO F. Plan changes in our course to minimize negative effects. [ ] YES [ ] NO G. Make decisions promptly. [ ] YES [ ] NO H. Always get the facts behind problems. [ ] YES [ ] NO I. Accept my own limitations. [ ] YES [ ] NO J. Delegate tasks that can be done more efficiently by someone else. [ ] YES [ ] NO K. Analyze all available options. [ ] YES [ ] NO L. Develop my reading/study habits. [ ] YES [ ] NO M. Improve my skills. [ ] YES [ ] NO N. Consider and evaluate risks. [ ] YES [ ] NO O. Be positive with customers, employees, and associates. [ ] YES [ ] NO

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