Scoring Climate

The Five-minute C.E.O. Climate Quiz - Scoring Discussion

Total the number of "yes" (correct) answers from the CEO Climate Quiz.

Number of "Yes" Answers	Implication
16 - 20	Your climate is generally supportive of maximizing profitability. This is probably a good place to work.
10 - 15	There is significant room for improvement and it may not be too late to act for positive change.
9 or less	Your culture is working hard against corporate success on many fronts. Make changes promptly or polish your resume.

"No" answers and low total scores may indicate the following:

	Management is setting a bad example
	Poor individual performance may be supported
	The status quo is inadequate
	Corporate culture may be preventing profitable growth
	Business practices encourage spending rather than saving
	There may be a lack of trust
	Management is stale
	Communication is inadequate
	Profit may be sacrificed for the sake of volume
	Corporate and individual goals may be in conflict

The lower your "yes" total, the more trouble you are in. A failure to recognize the current and potential impact of internal forces acting against your profitability can lead to failure. Let this be your wake-up call that something needs to be done.

A Cost Effective Organization (CEO) uses all of its vital resources wisely and efficiently to accomplish well-defined goals. It has its eyes on the future and its feet on a strong foundation of good business practices. It is alive and growing, changing with the times and even leading for others to follow. CEO's consume challenges and are healthy. The are appreciated by their investors, clients, and stakeholders because they continuously create value.

This measure is designed to examine how your business is managed and how your people are lead. Cost Effective Organizations are characterized by the presence of the factors that would generally be found when one answers "yes" to the questions on the quiz. They represent an awareness of common goals, measures of success, and respect for people that are often associated with organizations that are creative, innovative, and successful. While there is no absolute breakpoint for success, one would want to encourage the awareness and support for a working climate in which these factors are present.

The majority of these questions relate to people because they influence the effective utilization of the seven vital elements and resources of cost effective organizations:

	financial,
	material,
	space,
	time,
	energy,
	knowledge, and
	people.

If you are providing your people with respect, a comfortable environment, supporting them with the appropriate tools and training, communicating well, and sharing the mission and vision of the organization, you have a much greater chance of success than if you do not.

Climate takes a long time to change but it can be changed by effective managers and leaders who are willing to put in the effort to make it happen. Studies indicate that management (and their practices) have 75% of the influence on climate. The Profit Improvement Process is one approach available to management for creating positive change and a CEO climate.

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Five Strategies for Avoiding Business Failure

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