Taking Control, Stabilizing Your
Business and Preparing for Growth
Presented by:
Linda Hale
and
Jerry Armstrong
Copy Right © All Rights reserved to Best Directions and Jerry Armstrong 2010
1
What do you
mean by take
control?
Our
company is
stable!
We can’t
grow in this
condition.
We don’t know
what is
happening in
our own office.
Best Directions, 440-985-3332, L.hale@bestdirections.com
2
Taking Control
• Is not about doing it all yourself or working
24/7
– A tendency of Entrepreneurs
– This limits growth potential
• Is not about micromanaging
• Is about Enabling
Best Directions, 440-985-3332, L.hale@bestdirections.com
3
Stabilizing Your Business
• Is establishing a good structure/framework
– Creating a Solid Foundation
– Standardizing
– Controlling
• Is providing good communication Methods
Best Directions, 440-985-3332, L.hale@bestdirections.com
4
Preparing for Growth
• Is about enabling yourself to delegate
– Ensuring Employees and Contractors know:
• what you expect of them
• how to do the tasks you expect them to
perform/complete
– Ensuring Customers receive a consistent
product (s) and/or service (s)
Best Directions, 440-985-3332, L.hale@bestdirections.com
5
The Tools
Policies
Procedures
Work Instructions
Best Directions, 440-985-3332, L.hale@bestdirections.com
6
Getting on the same Page:
In order to communicate effectively
you will need to know how we
define the terms we will use.
Or shall we say, “get on the same
page”?
Best Directions, 440-985-3332, L.hale@bestdirections.com
7
Do you know what the following
Acronyms stand for?
•
•
•
•
•
•
•
•
CIA
WASP
SOS
WIN
SAR
SOP
A&W
BA
•
•
•
•
•
•
•
•
•
ITIL
ISO
AAA
DVD
FBI
UA
OH
BAR
IIBA
Best Directions, 440-985-3332, L.hale@bestdirections.com
8
How did you do?
• CIA – Cleveland Institute of Art
(7)
• WASP – Women Air force Service
Pilots (15)
• SOS – Support on Site (24)
• WIN – Women International
Network (10)
• SAR – Student Aid Report (15)
• SOP – Senior Officer Present (14)
• ETA - Electronic Transfer Account
(3)
• A&W – Alive & Well (11)
• BA – Bad Attitude (14)
• ITIL – Information Technology
Infrastructure Library (1)
• ISO – I’m So Old (9)
• AAA – Anti-Aircraft Artillery (16)
• DVD – Direct Vendor Delivery (4)
• FBI – Food Borne Illness (11)
• UA – Unmanned Aircraft (8)
• OH – Oh Hell (7)
• BAR – Browning Automatic Rifle
(6)
• IIBA - International Indian Bar
Assoc. (3)
http://acronymsearch.com/index.php
Best Directions, 440-985-3332, L.hale@bestdirections.com
9
Definitions
What are Policies?
Policies:
Policies are rules established by management.
All procedures and work instructions are
governed by policies.
Best Directions, 440-985-3332, L.hale@bestdirections.com
10
Definitions
Processes :
Are ordered tasks initiated by people using,
methods, tools, environment, and
materials/information to convert given inputs
into outputs of added value.
Procedures :
Procedures define and document the major
processes within an organization. Often these
are called operating procedures.
Best Directions, 440-985-3332, L.hale@bestdirections.com
11
Definitions
Work Instructions:
Work instructions describe and
document specific tasks associated with
each activity and explain how each task
is performed.
Best Directions, 440-985-3332, L.hale@bestdirections.com
12
Policies, Procedures and Work Instructions
Policies
Procedures
Planning
Purchasing
Receiving
Accounting
Departmental Policies
Work
Instructions
Best Directions, 440-985-3332, L.hale@bestdirections.com
13
Policies, Procedures and Work Instructions
Policies
Procedures
Planning
Receiving
Accounting
Purchasing
Departmental Policies
Work
Instructions
Best Directions, 440-985-3332, L.hale@bestdirections.com
14
Examples of Topics the Entrepreneur Should Address
• Internet Communications and Social Media
• Financial
• Production
• Sales
• Business Continuity
• Regulatory
Best Directions, 440-985-3332, L.hale@bestdirections.com
15
Effect on the Bottom Line and Growth
•
•
•
•
•
Customer Satisfaction (Internal and External)
Controlled Run Time
Quality
Employee Morale
Found or Missed Opportunities
Sales
Process Improvement
Software Planning and Selection
• Audit Results
• Fines and Penalties
Best Directions, 440-985-3332, L.hale@bestdirections.com
16
Causes of Poor Procedures and Work Instructions:
• No Policies
• Lack of Stakeholder Input
• Not Standardized
• Not Documented
• Not Maintained or Updated
• Lack of Communication (before, during and after)
Best Directions, 440-985-3332, L.hale@bestdirections.com
17
How to Identify a Good Procedure or Work Instruction
• Supports the company's Values, Vision, Mission
• Adheres to Policy
• It accomplishes its objective
• Reviewed and Approved by Management
• Periodically Reviewed and Updated
Best Directions, 440-985-3332, L.hale@bestdirections.com
18
Case Study
Truck Loading
Use of Standard Work Instructions
(SWIs)
Best Directions, 440-985-3332, L.hale@bestdirections.com
19
Case Study
Truck Loading – Use of SWIs
• Situation
– New dock hand - No Work Instructions
– Loading eggs on truck
• Result
– Eggs break in transit
– Driver calls out dock hand
• Fix
– Create SWI for loading trucks
Best Directions, 440-985-3332, L.hale@bestdirections.com
20
Developing Good Procedures and Work Instructions
Best Cycle
Stakeholder
Input
Identify the Need
Disapprove
Improve
Process
Review
Develop Work
Flows
Develop
and Write
Cycle Diagram Copy Righted © All Rights reserved to Best Directions 2010
Best Directions, 440-985-3332, L.hale@bestdirections.com
21
Maintaining Good Procedures and Work Instructions
and Ensuring Continuous Improvement
Best Cycle
Stakeholder
Input
Periodic Review
Post
Communicate
Train
Disapprove
Approve
Review
Develop Work
Flows
Develop
and Write
Cycle Diagram Copy Righted © All Rights reserved to Best Directions 2010
Best Directions, 440-985-3332, L.hale@bestdirections.com
22
Standardization
Standard Operating Procedures (SOP) and
Standard Work Instructions (SWI)
• What makes a procedure or work instruction standard?
– Standard process
– Reviewed and approved by management
– Written and has a standard content
– Posted where they can be referenced by all employees
Best Directions, 440-985-3332, L.hale@bestdirections.com
23
Components
SOP and SWI Standard
• Policy
• Responsibilities
• Purpose
• Detailed Steps
• Scope
• Related Documents
• Definitions
Best Directions, 440-985-3332, L.hale@bestdirections.com
24
Communicating / Training
• Employees, Vendors/Suppliers, Customers
• How do you effectively communicate
– Written
– Posted online (intranet and internet)
– Hard Copy
• Training
– Hands on / Demonstrations / Computer Based
Best Directions, 440-985-3332, L.hale@bestdirections.com
25
Things to Consider
•
•
•
Governance Committee/Group
– Management Team
Engage Relevant Stakeholders
– SMEs
– Customers (Internal and
External)
– Suppliers (Internal and
External)
Independent Review
– Advantages
– Specialists in Process
• Document and make available
– Select your writers
• SMEs or non SMEs?
• In-house or external
specialists
• Cost of Not Acting
• Investment in Future Profitability
26
Return on Your Investment
Your Return on Investment (ROI) is:
• Continuous Improvement Tool That:
– Identifies shortcomings
• Evaluate process
– Creates an environment that encourages positive input
– Facilitates updating for changes in regulations, etc.
– Facilitates changes needed by customers
• Mitigated Risk
• Management Perceptions and Expectations
• Insurance that the company’s values, mission and
vision are understood and will be carried out
Best Directions, 440-985-3332, L.hale@bestdirections.com
27
Remember!
Knowledge is Power.
Take Control of your
Business and its Future.
Best Directions, 440-985-3332, L.hale@bestdirections.com
28