Transform your business from average to excellent!

“Organizing is what you do before you do something, so that when you do it, it is not all mixed up.”

A.A. Milne

For most business owners, the thought of writing detailed SOP’s or Standard Operating Procedures is about as fun as a bowl of plain porridge. However, detailed process and procedure is what sets you free to become sustainable and scalable, and they will often send you home in time for dinner with a good chance you won’t have to work on the weekend. Why? Because you are highly organized!

Every long lived successful business eventually buckles down and writes their SOP’s. Without them your business is destined to plateau or decline, be fraught with waste and inefficiencies and stress will be common for the owner and employees. What’s worse, you’ll likely have some unhappy customers.

For the sake of sanity most of us want to make sure that everyone is on the same page, when they are not, there will be confusion and conflict in the ranks. Customers are aggravated or even worse, lost because you inadvertently treat one differently than another or because they get conflicting answers from your customer service people. Time is lost going back and fixing and re-fixing things that were not clearly spelled out. Employees are frustrated because they can’t get a consistent answer as to how to handle a particular situation. Training new employees is a nightmare (for the trainer and the new employee) because there are too many different ideas about what is the “right way”. It makes so much more sense to take the time to create and maintain an ongoing list of standard operating procedures.

Getting Started

Get really clear on how you want things done and done with excellence. Figure out your departments ie accounting, shipping, customer service etc. Then name the processes that happen within those departments. Now document those processes and systemize them so that you reduce errors. How do you systemize? You do it with machinery, software or manually with checklists. QuickBooks systemizes your accounting. The easiest way to systemize your processes is with checklists, you can easily create these for you and your employee’s so that everything gets done the same way all the time and done to your company standard.   This will create a map of your departments and the processes that happen within them.  When you have this done you will feel your stress levels decrease…guaranteed!

You are now on the road to becoming highly organized with happier employees and better customer service.

 

 

When a good business becomes a great business!

A good business becomes a great business when the owner is “operationally irrelevant” but continues to profitably scale.

In this post we talk about the importance of being free from the day to day and getting out of the office more and allowing your people to run the business. If you don’t do this, you cannot become strategically excellent.

Here are five reasons you want to become operationally irrelevant:

Before becoming operationally irrelevant your business needs to become tactically excellent.  You’ll never get the confidence to let others run your business until you have achieved a consistent level of excellence your customers can depend on.

Operational irrelevance increases the value of your business. At some point you will likely want to sell your business or put a succession plan in place.   If your participation is not needed for any of the tactical parts of your business potential purchasers will become much more interested in what you’ve built.

Operational irrelevance allows you to have capacity to act strategically.
Most business owners I know can think at least a little strategically, but most don’t have the time or energy to act strategically.  Becoming operationally irrelevant will give you some extra time to do things to make your business better.

Operational irrelevance will allow you to build enterprise value in your business.  The vast majority of businesses don’t have any enterprise value.  This is because you as an owner are tied down in the weeds of the business.  If you ever want to build enterprise value (meaning your business creates significant excess cash) you’ll have to become irrelevant so you have time to look at items like return on equity, investment and assets.

You’ll have time to make small experiments that will provide big changes. You need to regularly re-invent and tweak your business. To become innovative you’ll need the time and energy to think and act.  When you make yourself irrelevant you can lead a team of innovators in your company and at some point they can take this over completely, but for now you’ll have to lead the way.

“Operational irrelevance” is a major key to building a business of value and creating a great work/life balance, setting the stage for a happy exit event on favourable terms.