Worksheet: Score every business and give each a role

A group that funds all its businesses the same way has not decided what each one is for. This sheet scores each business side by side and proposes a role for the board to agree. It builds the Competent step of the check:

Each business has been scored on how attractive its market is and how strong its position, and has a stated role (grow, fix, hold for cash, exit) the board has agreed.

Step 1. Define the businesses

Treat two units as separate businesses when they sell to different customers or compete with different rivals. The same business in several countries or brands counts as one.

Step 2. Score and propose roles

Market attractiveness covers size, growth, typical margin and rivalry. Strength of position covers share rank and trend, cost against the leader, and how customers rate you. Score each 1 to 5.

Business	Market attractiveness	Strength of position	Revenue	EBIT	Capital employed	Return on capital	Cash generated or used	Proposed role
e.g. Building products	2	4	$420m	$38m	$300m	13%	Generates	Hold for cash

Step 3. Make each role mean something

Role	What it means for the plan
Grow	First call on growth capital and on the best managers
Fix	A turnaround plan with a date and a test; capital tied to milestones
Hold for cash	Stay-in-business capital only; cash returned to the group
Exit	Sale or closure prepared; no new capital

Step 4. Take it to the board

Business	Role proposed	Role agreed	Board meeting date

Done when: every business carries a score on both axes and a role the board has agreed and minuted.

Adapted from our own frameworks overview (PJP, 2015).