The Need For Process
"We need someone to establish processes and structure to our operation." This is the phrase most used during initial consultations with small business owners in my experience. As a certified project manager, I immediately feel confident in my ability to provide that for my clients. The other expectation that must always be discussed is the delicate balance of process and speed that directly impacts the operations of the business. Defining that balance with high level positions is relatively easy prior to diving deeper into the operations. The disconnect between high level positions and the entry level operators is one of the driving forces of complexity in managing change to a more structured and process driven environment.
Discussions with the existing team about the goal and their needs typically are longer, more passionate, and more divided. What is typically found is that the employees have processes and structure in place, although very rarely documented or readily available. The issues tend to lie in on-boarding, training of new processes, and inconsistency stemming from learned best practices. I typically go through a new employee on-boarding as part of my initial research to establish what areas might need to be addressed. During on-boarding I ask questions around different standards and every single time I find that even employees working the same shift will answer questions very differently.
Consider this example, when I asked a group of employees a basic standard such as "How many ribs come in a half-rack of ribs?" I received the following answers: "4", "6", "It's by weight", and "I have no idea". These answers came from a manager, a cook, a server, and an employee in to-go. While this might not be a question that is asked frequently, the example can be replicated in common questions as well. The issue lies in that if a customer asks a question such as this, they are then being provided a different standard depending on who they ask. That customer now has a standard that might be exceeded, met, or drastically underwhelmed. Multiple avenues can be taken to address this type of inconsistency such as posted documentation, establish 1 point of contact for standards, and impromptu meetings to communicate to the team on the official standard. All of the solutions have varying impacts on effectiveness and efficiency. How do we decide that balance?
Process Evaluation
Before diving into the balance, we must first understand why businesses in operation do not have the process and structure they desire from the beginning. The process and structure of an organization tends to coincide with the time in which a business has been operating and the sales volume of the business, which is almost common sense. The misnomer in this situation is that small business cannot obtain the same level of process and structure due to the rarest of resources, time. When clients are asked why they have not implemented the structure and process they need, they typically respond with "I just don't have the time". While this excuse can be found true, it might also mean their time is being spent on areas that can be avoided, delegated, or delayed. All too often the owner or manager can be found in the weeds with the typical team member during the rush and unproductive during slow periods. It is a shift in mindset and focus to begin thinking and working on the business and not just in the business. The reflection time for an owner or manager is critical to allow them to evaluate all of their priorities, issues, and processes to better understand where they can possibly improve. Without this time of reflection, the business will forever remain in a state of stagnation in terms of process and structure.
Process Categories & Balance
To address the issue of balancing effectiveness with efficiency of a process it is important to clarify the impact on the business if the problem is not addressed. There are a few categories we must focus on to determine if process is an inhibitor or enabler of success, compliance, process improvement, and preference. These categories are not all inclusive but what I have found to be the most prevalent in evaluating process implementation.
Compliance type processes are certain required standards that must be met, whether it is building code, food safety, reporting, or any other compliance type issue. These issues do not require evaluation as it must simply be done. If anyone claims otherwise, they are missing the fact that the business could be temporarily closed, fined, or otherwise damaged long-term due to these compliance type issues being addressed in a timely manner.
Process Improvement type processes are those that increases effectiveness and/or the efficiency of the work to be carried out. The evaluation must be done to determine if the time spent on development of this newfound process will result in return on investment of time. I have seen processes that took months to finalize and implement only to result in near break-even impact. It is imperative that each process improvement is fully evaluated before beginning the project to execute the development, implementation, and ongoing training. This is where many people begin to feel processes slow business operations down, especially when a process results in minimal impact. The key takeaway for this type of process is to evaluate the full cost of the project versus the impact of the final deliverable. There are several metrics you can use such as pay-back period, Net Present Value (NPV), and Return on Investment (ROI) that can still be applied even with no perceived assets involved.
Preference is where the real issues come into play. This category of process can be defined as a person of influence in the business simply prefers something to be done a certain way without any perceived or real value add. This is dangerous territory that is typically ventured into due to a leader making a few critical mistakes. A common mistake leader's make is simply not educating the team on how or why this new process must be followed. When leaders do not properly educate or show team members why the process is important it is then left up to the team members to interpret the change as they see fit. When this happens, the new process can be seen as a simple preference to the leader and will lose traction with team members quickly. A less common but more detrimental mistake leaders make is when they decide to change or implement a process without consulting with the team first. I have seen this type of mistake made in environments in which the leadership is disconnected from the day-to-day operations of the business. I can assure you there is no quicker way to lose the respect, trust, and motivation of employees.
Conclusion & Takeaway
Process and structure can be an incredibly powerful way to bring effectiveness and efficiency to a business when handled appropriately. New and improved processes must go through an evaluation on the why the process is needed, what the impact of the process will be, and who needs to be involved in the development of the process. Use processes effectively and your business will be able to still maintain agility, focus, and success.
If you have questions or would like to discuss how I can help your business, send me an email at jconerly.arc@gmail.com to book a free 1 hour consultation.
Joseph Conerly, CEO
Opmerkingen