Assessment for The Flexible Stance:
Instructions: For each question, check the box that best describes how often your company employs a practice.
1. When making major capital commitments (machinery, real estate, etc.), does the company explicitly consider potential for expanded output as well as the possibility of having to cut expenses?
2. When considering whether to outsource services or have a part manufactured by someone else, does the company explicitly consider the potential for expanded output as well as the possibility of having to cut expenses?
3. Does the company make decisions about capital structure (equity and debt financing) after considering the possibilities of needing to cut expenses or to increase capital spending or to make a major acquision?
4. Is the value of operational flexibility considered in day-to-day decision-making?
5. Has the company identified major uncertainties that arise from changes in technology, social attitudes, government and competition?
6. Does the company and its major divisions have a contingency plan for a recession?
7. Does the company and its major divisions have contingency plans for negative risks in the areas of technology, social attitudes, government and competition?
8. Has the company estimated the financial impact of a typical recession?
9. Has the company identified major uncertainties in the areas of technology, social attitudes, government and competition that could have favorable impact?
10. Has the company estimated the potential sales impact of a period of unusually strong economic growth?
11. Has the company identified challenges that would arise if demand for its goods or services were to increase?
12. Does the company review at least annually these challenges?
13. Has the company identified major functions in which speed would reduce risk?
14. Does the company identify related business acitivies (different markets, different products, different sales channels) that it might want to enter?
15. Are line managers encouraged to develop their own contingency plans?
16. Are employees encouraged to develop new skills or to apply existing skills to new challenges?