1. Strategy - The extent to which an organization has a logical sense of the actions it must take to gain sustainable competitive advantage over the competition, improve its position in relation to customers, and allocate resources to high-return activities.

2. Structure - The extent to which an organization has a coherent form for dividing labor, allocating responsibilities, coordinating tasks, and ensuring accountability.

3. Systems - The extent to which an organization has explicit descriptions in place to show how processes work and tasks are accomplished in critical areas such as capital budgeting, manufacturing, customer and supplier relations, accounting and performance measurement, and carrying out mergers and acquisitions.

4. Style - The degree to which there is tangible evidence that the time, attention, and behavior of management and employees actually are devoted to, and aligned with, the organization's real strategic needs.

5. Staffing - The degree to which management and employee expertise and experience match the jobs that have to be carried out, the extent to which the personalities in place are capable of working together, and the degree to which there is sufficient diversity among staff to allow opposing and dissenting voices to be heard.

6. Skills - The extent to which an organization as a whole, as opposed to its employees, has the capabilities not only to compete in existing businesses but also to develop new businesses and generate corporate growth.

7. Shared values - The extent to which there is unity of purpose behind a common vision and culture that is taking the organization to where it should be going.

Qualities of Excellence:

1. A bias for action

2. Closeness to the customer

3. Autonomy and entrepreneurship

4. Productivity through people

5. Hands on and value driven operations

6. A willingness to stick to the knitting

7. A simple form and lean staff

8. Simultaneous loose-tight properties.