| There are three key business processes involved in | | | | leads to chaos. When basic systems and processes |
| operating an entrepreneurial enterprise-management, | | | | are developed for performing easily replicated, |
| strategy and operations. Ideally, all three business | | | | day-to-day tasks, your business is better positioned |
| processes are tightly integrated. The management | | | | to produce more consistent results. |
| process provides a framework for hiring, training, and | | | | Standardization of business processes applies to |
| managing employees. The process not only helps | | | | procedures, standards, work instructions, and |
| employees become more effective in their positions, | | | | guidelines for various business functions. |
| but it also helps to improve employee retention | | | | Standardization is about creating a clearly defined |
| levels. The strategy process establishes both | | | | system that enables everyone to do their best work. |
| short-term and long-term goals. It clearly defines | | | | Proper standardization of the business processes also |
| where you want to take your business in terms of | | | | includes the creation of an Operation Manual. |
| earnings, sales, and revenues, and it also clearly | | | | The Operation Manual is a written document which |
| defines how you plan to get there. The strategy | | | | clearly explains to all employees the standards of |
| process becomes your road map. And finally, the | | | | operation, and identifies the operational tasks required |
| operation process provides the tools and the | | | | to establish and operate the business. The Operations |
| resources for achieving your goals. | | | | Manual supports and promotes the use of consistent |
| A business enterprise should be thought of as an | | | | and uniform, day-to-day procedures within the |
| entity--one that is operating as a whole. Although | | | | business unit for the purpose of maintaining the |
| individual projects and processes appear to be | | | | quality of its services and products. The Manual |
| working independently, they are interrelated and are | | | | further defines the company's system of standard |
| focusing on the company's short and long-term goals. | | | | processes, procedures, and guidelines. It outlines the |
| Effective project and process management is about | | | | procedures for hiring as well as the procedures for |
| the systematic breakdown of the business | | | | employee training and development. |
| operations into smaller, well-defined parts | | | | Simplifying your business operations is critical. |
| --components that are more manageable on both a | | | | In today's competitive market, how you deliver your |
| macro and a micro level. The macro level's focus is | | | | products/services is most often what differentiates |
| on achieving high-level organizational goals/objectives | | | | your company from your competitors. Is your |
| and on creating processes that enable the business | | | | company efficient and productive? Or have your |
| to better achieve those goals/objectives. The micro | | | | company's processes become cumbersome, |
| level's focus is on breaking down the various jobs, as | | | | unwieldy, and out of control? |
| well as their individual tasks, into smaller steps | | | | Business growth does not necessarily equate itself |
| components. | | | | with business growth complexity. Success sometimes |
| Breaking down complex projects and/or processes | | | | hinges on elegant simplicity. Many times, when |
| into more manageable parts is a valuable key | | | | companies expand as a result of rapid, unplanned |
| business practice since attempting to deal with | | | | growth, they do so without a carefully orchestrated |
| multiple, complex problems simultaneously results in | | | | plan. The absence of an adjusted plan--that meets |
| inefficiencies, delays, confusion, and stress. Achieving | | | | increased business demands-- creates complex, |
| short and long-term goals, meeting targets, and | | | | inefficient operational results. |
| handling day-to-day issues become much easier when | | | | Many businesses find themselves with staff, |
| tasks are divided into mini-steps. When each mini-step | | | | resource, and equipment redundancies; lack of formal |
| is completed, employees experience a sense of | | | | systems; duplicated efforts; and no clear line of sight |
| accomplishment rather than feelings of frustration | | | | to the strategy driving the business. The solution to |
| that often arise when dealing with the whole versus | | | | this problem is to assess the business from a |
| its individual parts. | | | | big-picture perspective and streamline its operations. |
| Standardization better positions your business to | | | | In order to effectively simplify your business |
| succeed. | | | | operations, consider these tips: |
| Many early-stage entrepreneurial enterprises, as well | | | | Analyze existing business processes. |
| as established companies, under-perform! They are | | | | Identify gaps in efficiency and productivity. |
| typically characterized by having an informal | | | | Develop a solid plan that redesigns and formalizes |
| management system, ad hoc procedures, and, at | | | | processes. |
| times, an absence of standardized systems and | | | | Prepare and obtain support from partners, |
| processes. In order for enterprises to flourish into | | | | investors, managers, and employees for necessary |
| profitable businesses, standardization of processes | | | | changes. |
| and procedures is essential. Very few businesses can | | | | Prepare your company for change. |
| manage effectively without standardized processes. | | | | Establish performance benchmarks. |
| Without standardization, most likely, things will not | | | | Roll out the plan using a phased approach. |
| get done on a timely basis. | | | | Monitor and evaluate progress. |
| Effective and efficient business processes depend on | | | | Consider outsourcing processes that you cannot |
| standardization. Standardization means that all your | | | | handle in-house. |
| employees will perform a task in the same way, | | | | Efficiency and profitability go hand-in-hand. The more |
| every time the task is performed. Setting standards | | | | efficient the operations become, the more profitable |
| for how things should be done, and then, | | | | businesses become! When a business demonstrates |
| documenting the steps of the process to meet | | | | efficiency, it is far more productive since waste and |
| those standards, are critical initiatives that your | | | | effort of its valuable resources (time, money, and |
| company must take if it is to grow and reach its | | | | people) are at a minimum. That is why businesses |
| potential. Once basic systems are in order, jobs and | | | | with fine-tuned business processes are some of the |
| tasks are done more efficiently and effectively, and | | | | most profitable companies in their respective |
| decisions are made with greater ease and with | | | | industries. |
| greater reliability. | | | | By simplifying and standardizing your business |
| The absence of standardized systems is a major yet | | | | processes, you will achieve your goals and realize the |
| very common cause of under-performance by | | | | full profit potential of your business! |
| businesses. "Flying-by-the-seat-of-your-pants" | | | | © 2010 Terry H. Hill, Training for Entrepreneurs. |
| management creates inconsistencies and ultimately | | | | |