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Consistent, predictable results begin with consistent actions.
Consistent actions begin by identifying the actions that will lead to
the desired results. When these actions are written in the form of
procedures, and employees are trained in those procedures, the business
will begin to operate more smoothly.
When the desired results do not occur, the owner has a direct means of
identifying the cause and a solution. Was the procedure followed
properly? If not, why not? If so, then what step of the procedure was
flawed? Troubleshooting becomes a simple process of looking at each step
of the procedure, and identifying where the problem occurred.
Procedures will not magically transform a struggling company into the
epitome of success. A procedure is only as good as its components.
However, it will allow you to gain control over your business, rather
than allowing your business to control you.
Many owners fall victim to the mistaken belief that if they want
something done right, they must do it themselves. While this may
expedite maters in the short term, the next time the task must be
performed, the owner must do it. He has not prepared anyone else to do
it correctly. By documenting procedures, the task can be performed
correctly, without the owner's involvement.
Each employee will know what is expected of him, and how he is expected
to perform. The owner can make it clear to employees what he expects, in
terms of action and results. He can then delegate without the fear that
they won't do it "his way". "His way" is the company way.
This is a tremendous benefit to employees. They no longer have to guess
what the owner/ manager wants. The Operations Manual will clearly
establish those expectations, in terms of results and the actual actions
required to achieve those results. Indeed, unclear expectations are one
of the biggest complaints about small business owners from their
employees.
Customers also benefit from more consistent service. Quality customer
service becomes less of an individual issue, and becomes ingrained in
the system. The employee may not know how to deliver quality customer
service, or his ideas on the subject may be inconsistent with the
owner's. In either case, the customer will ultimately suffer.
Procedures provide the means to establish the actions that will lead to
the desired results. It is essentially a "how to" manual for the
company's success.
Procedures provide a basis for each employee to do a particular task in
the same manner. Consequently, so long as the procedure is followed, the
result will be the same. The employee is not "winging it", the customer
is receiving the service he expects, and the owner can be assured that
his business will operate as he desires.
In short, procedures benefit the owner, employees, and customers. It is
a win-win-win situation.
The essence of developing and writing a procedure is the SISTEM:
Sort-Identify
and Organize
Integrate-Tie
the elements together
Standards-Write
the procedure
Test-Review
and revise
Execute-Implement
Modify-Update
as needed
The first step in developing a procedure is the creation of a list of
every task associated with the operations of your business. I suggest
categorizing each task. For example, in my business we categorized each
task as Administration, Production, or Sales and Marketing. This makes
it easier to focus on a particular part of the business at one time. To
make the process easy, I would suggest using a 3-ring binder and keeping
all information pertaining to each category together. An alternative
would be to keep each category in a separate binder.
While you should exercise care while developing your list, understand
that some tasks might be overlooked. These can be added later. The
primary purpose at this point is to get a relatively complete list in a
reasonable amount of time. Some tasks, such as insurance and tax filings
may occur quarterly or annually, and might be overlooked initially.
In can be helpful to enlist employees in this process. Have them write
down each task they perform for several weeks. By that time, the most
common tasks will be on your lists.
If an owner desires to create a business that is independent of
himself, enlisting those who will ultimately run the business is
crucial. Their participation in the development of procedures will
result in more effective procedures, as well as greater enthusiasm in
the implementation of the procedures.
During development of your procedures you and your employees will begin
to identify how each department interacts with and depends on other
departments or functions. This "big picture" view can be particularly
illuminating to employees, who may view their role as isolated and
disconnected from others in the company. Employees can see how their
actions affect others, as well as the business as a whole.
Even in a small business, employees may not always be aware of the
impact of their actions. They may not understand the relationship
between the myriad tasks that comprise a typical business day. Even when
that understanding exists, the possibility of a more efficient or
effective procedure is often overlooked.
Many small business owners manage in the style of a benevolent
dictator-they impose their ideas and expectations on employees with
little or no input. Those ideas and expectations may seem non-sensical,
or counterproductive to the employee. Involving key people in the
process of developing and documenting systems is crucial to the
long-term success of the project.
Owners and employees can have very different views of the business. The
owner is usually looking at the forest, while employees are looking at
the trees. The owner looks at the business as a whole, while the
employee typically looks at a much smaller set of issues.
By involving employees in this process their perspective can be
broadened. They can see that the business is an integrated whole, in
which each part must function properly for the business to operate
successfully. This can have a profound impact on the business.
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rything from accounting to
marketing,
from sales to hiring. This manual comes complete with sample forms,
work sheets, action steps, and exercises.