Download Taking Control, Stabilizing Your Business and Preparing for Growth

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, [email protected]
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, [email protected]
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, [email protected]
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, [email protected]
5
The Tools
Policies
Procedures
Work Instructions
Best Directions, 440-985-3332, [email protected]
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, [email protected]
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, [email protected]
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, [email protected]
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, [email protected]
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, [email protected]
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, [email protected]
12
Policies, Procedures and Work Instructions
Policies
Procedures
Planning
Purchasing
Receiving
Accounting
Departmental Policies
Work
Instructions
Best Directions, 440-985-3332, [email protected]
13
Policies, Procedures and Work Instructions
Policies
Procedures
Planning
Receiving
Accounting
Purchasing
Departmental Policies
Work
Instructions
Best Directions, 440-985-3332, [email protected]
14
Examples of Topics the Entrepreneur Should Address
• Internet Communications and Social Media
• Financial
• Production
• Sales
• Business Continuity
• Regulatory
Best Directions, 440-985-3332, [email protected]
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, [email protected]
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, [email protected]
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, [email protected]
18
Case Study
Truck Loading
Use of Standard Work Instructions
(SWIs)
Best Directions, 440-985-3332, [email protected]
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, [email protected]
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, [email protected]
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, [email protected]
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, [email protected]
23
Components
SOP and SWI Standard
• Policy
• Responsibilities
• Purpose
• Detailed Steps
• Scope
• Related Documents
• Definitions
Best Directions, 440-985-3332, [email protected]
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, [email protected]
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, [email protected]
27
Remember!
Knowledge is Power.
Take Control of your
Business and its Future.
Best Directions, 440-985-3332, [email protected]
28