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Strategy & Decision sections
Business audit — advanced sections
Strategy & Decision audit
Two sections based on Roy West's published frameworks. Use alongside the main process inventory audit. Together they surface not just what the business does — but how it thinks and decides.
📘 Pivot, Pause, But Don't Panic
📗 Don't Do Nothing
Based on Pivot, Pause, But Don't Panic
Strategy — where is this business going?
Most small businesses operate without a documented strategy. This section surfaces whether one exists, how clear it is, and whether the owner is stuck in the firefighting trap that prevents strategic thinking from happening at all.
Consultant note: Start with the firefighting question — it frames everything that follows. Most owners will recognise themselves immediately. The goal isn't to make them feel bad but to open the conversation about what's possible when they step out of reactive mode.
The firefighting trap
📘 Chapter 1 — The Firefighting Trap
Almost all reactive — firefighting every day Mostly reactive with some planning time Roughly equal — reactive and proactive Mostly proactive — fires are the exception
Client work and delivery Solving problems and putting out fires Managing staff and operations Sales and business development Strategic planning and thinking
Yes — scheduled weekly thinking time Occasionally — when things quieten down Rarely — always too busy Never — hasn't occurred to me
The Burnout Tax, the Profit Plateau, the Missed Opportunity Cost, the Team Disengagement Tax — which resonates most?
Does a strategy exist?
📘 Chapter 2 — The Missing Roadmap
Yes — written, current, and referenced regularly Partial — exists but not current or not used In the owner's head only — not documented No strategy — operating day to day
Yes — written and lived Partial — some elements exist In the owner's head but not written No — not defined
The strategic audit — current state
📘 Chapter 3 — The Strategic Audit
From the book: "You can't plan a road trip without knowing where you're starting from." Use these four quadrants to quickly map the business's current strategic position.
Strengths
What does the business do better than anyone?
Weaknesses
Where are the internal gaps or limitations?
Opportunities
What external conditions could be leveraged?
Threats
What external risks are on the horizon?
90-day sprint — current priorities
📘 Chapter 7 — The Power of the 90-Day Sprint
Record their actual answer. If they list more than 5 things, prompt them: "If you could only do 3 of those, which 3 move the business forward most?" Unfocused lists signal a missing strategy.
Yes — scheduled, protected, and productive Occasionally — but not structured No — we talk about things informally No — haven't thought about it
Yes — defined KPIs reviewed regularly Partially — some numbers tracked informally Revenue only — nothing strategic No measurement at all
Strategy maturity — overall assessment
No strategy — pure firefightingClear, documented, lived strategy
Based on Don't Do Nothing
Decision-making — how does this business decide?
Your business is the sum of all the decisions you've made to date. This section surfaces whether the business uses a documented decision process, where decisions are made well, and where they break down — costing time, money, and growth.
From the book: "Decision-making is a primary, continuous, and indispensable component of your role as an owner and leader. Today, tomorrow, and every day after that, you'll make more decisions than any other activity. Yet formal decision training is non-existent."
The decision-making process
📗 The 5-Step Business Decision Process
Yes — a clear, documented process Informal — same general approach each time Gut feel and experience only No consistent process — it varies Never thought about having a process
Step 1 — Write your Question Statement
Defining the problem before solving it
Step 2 — Challenge everything
Intuition, assumptions, and biases
Step 3 — Identify alternatives
Choices, risks, and consequences
Step 4 — Implementation
Choose, communicate, and act
Step 5 — Continuous feedback loop
Monitor, review, and pivot
The routine and the exception
📗 Chapter 4 — The Routine and The Exception
From the book: "Over 90% of everyday activities are routine. When routine decisions are well documented, the business is effective and profitable. Inefficiency arises when established processes are either not in place or disregarded."
Excellently — McDonald's-style processes for everything Well — key processes documented and followed Partially — some documented, much verbal Poorly — mostly verbal, inconsistent Not at all — improvised every time
Refer to the documented process Ask a senior team member Come straight to the owner Make their own call — good or bad Avoid it and hope it goes away
Exceptions are situations outside the norm that require leadership to resolve — often because no process exists for them yet.
What stops good decisions from being made?
📗 Chapter 3 — Fixing the Causes of Bad Decision-Making
Lack of strategy — no direction to decide against Communication breakdowns — decisions not shared Paralysis by fear — waiting too long to act Closed to new ideas — defaulting to what worked before Overconfidence — assuming the outcome without checking Indecision — avoiding difficult calls Sunk cost fallacy — staying with bad decisions too long
The book calls these "decisions left to rot." They compound over time and always cost more to fix later than now.
Yes — busyness is worn as a badge of honour Sometimes — awareness is there but habits persist Rarely — the owner is good at distinguishing No — clear distinction between activity and progress
The Rethink Decision-Making Framework
📗 Chapter 9 — The Rethink Decision-Making Framework
From the book: "Creativity, Collaboration, Critical Thinking, Convince an independent observer. Your decision-making process must be multidimensional. Linear thinking won't do the job in today's complex business environment."
Structured process — creativity then analysis Collaborates with team before deciding Uses an external advisor or coach Acts on gut feel without much analysis Rarely generates new ideas — too busy with today
Yes — regular sessions, genuinely challenging Yes — but mostly compliance, not challenge Accountant or lawyer only — reactive advice No — making decisions alone
Pure gut feel, no processConsistent, documented decision process
Based on Don't Do Nothing — Chapter 4
Decision register — who decides what?
A decision register maps the key decisions in the business — who currently owns them, what criteria are used, and whether the process is documented. It's one of the most valuable assets for a buyer because it shows the business can function without the owner.
Why this matters for buyers: If the answer to every decision is "the owner decides," that is owner-dependency documented in real time. The goal of the knowledge base is to change that — each decision should have a clear owner, clear criteria, and a documented process.
Complete one row per major recurring decision. Focus on decisions that happen regularly — not one-offs. Aim for 10–15 rows across all areas of the business.
Decision Area Currently owned by Should be owned by Criteria used Documented?
Client classification — the ABCD ranking
📗 Chapter 8 — Are All Clients Financially Equal?
From the book: "Please don't consider all clients equal because they're not. Quantifying the value of your clients in terms of time, effort, and profit will allow your business to function better." — Roy West
A
Awesome
High value, great to work with, pays on time, refers others. High lifetime value.
B
Basic
Routine work, good relationships, stable income. The solid middle.
C
Can't deal with
Drains time, complains, pays late, demands more than they pay for.
D
Dead
Unprofitable, difficult, or already inactive. Should be moved on.
Consultant assessment
Strategy & Decision summary
Use this section to consolidate the key findings from both sections into a clear picture of what the knowledge base needs to address beyond the operational processes.
The operational knowledge base addresses the what and how of running the business. The strategy and decision sections address the why and who decides. Together they create a complete picture for any buyer, incoming manager, or growth plan.
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The Pivot — One-Page Strategy Plan (clearly needs this first) The People layer — after HR processes are documented Financial mastery — numbers unclear, decisions made blind Exit or scale — sale preparation is the primary driver