All Systems GO!

Click here to download your complimentary copy of the ebook  How to be an Operations Super Hero: 3 Frequently Overlooked Ways to Improve People Performance and Help the Bottomline

Compliments of COMPROSE, Inc.

As Shakespeare said, “A rose by any other name would smell as sweet,” but corporate manuals come in all shapes and sizes under all kinds of names: Employee Policy Manual, Company Procedures Manual, Employee Manual, Corporate Training Manual, Policy and Procedure Manual, Operations Manual, etc., etc., etc.

Does the name make a difference?

Yes! Although all manuals share a common goal of laying out consistent standards, streamlining systems, and standardizing operations within a company, their content, structure and purpose vary dramatically from type to type. The difference between “Employee” manuals and “Operations" manuals in particular is worth a closer examination.

• Employee Manuals cover basic employment rules and policies, such as hours of work, vacation and holiday policies, non-discrimination policies, overtime policies and so on. Most organizations have some sort of general employee manual or handbook blessed by the corporate lawyers and handed out by HR during new employee orientation. 

• Operations Manuals are unique to each organization and cover the specific work systems and procedures of the organizations. Operations typically contain processes, procedures, work instructions and job aids that help employees understand how to complete tasks correctly and in a standard way.

Many organizations have basic employee handbooks, but a large number of organizaions lack any kind of Operations Manuals and pay the price for this through inefficiencies, lowered productivity and higher costs. For more on why that is, see previous post Standardizing Operations Helps You Work Faster and Eliminate Waste. 

Many organizations make another classic mistake by mixing up Employee HR Manuals and Operations and Procedures Manuals. For more on why this is a problem and how to avoid it see Avoiding Common Pitfalls: Don’t Mix Policies and Procedure “How Tos”

Experts are becoming increasingly worried about the upcoming Flu Season. What happens if the H1N1 virus really does become a pandemic?  Banking and Financial Services will be impacted along with schools, government and the economy at large. What if half your workforce calls in sick?

Check out this article from Bank Info Security, "Pandemic Planning: Beyond 'Checkbox' Compliance" .  It offers some good insight for everyone not just Banks and Financial institutions.

This quote in particular from business continuity experts Harry Rhulen points out why having your detailed business "system" clearly documented is absolutely critical to managing emergency situations like a Swine Flu Pandemic could pose: 

"What any organization needs to do, if they would like to have a truly implementable, actionable communicable illness plan, is they need to do an analysis of how their business works. What products come into their business? What happens when they are there? What goes out?"  --  Harry Rhulen,  Bank Info Security, July 31, 2009

Capturing your organizations detailed business systems--including processes, procedures and work instructions-- is not just about checking a box to satisfy the compliance officer, or even just about improving operational performance under normal conditions.

Standardizing operations and streamlining business processes are the things that will allow you keep operating effectively when nothing is normal. H1N1 virus or not, now is the time to get your business systems in order so whatever happens your organization will remain operational.

Find out how the COMPROSE Operations Mapping method and Zavanta software can help.
 

In an previous post  Do "Unwritten Rules" Undermine Your Business?, The Good Business Systems squad warned about the dangers of operating your business with "unwritten rules." This question from the May issue of St. Louis Small Business Monthly highlights more of the dangers. What happens when star performers leave and take their "unwritten" knowledge out the door with them?

My biggest all-star employee just left the company to work for a competitor.  He was efficient, virtually mistake-free and energetic.  When he left, he took with him a bunch of unwritten knowledge about how he did his job.  I now have a couple of people that are similar in background and knowledge, but they just can’t match what this person was able to do.  Besides working on my employee retention, how can I get access to the hidden or tribal knowledge that people like this all-star have?  What is a way that I can document the habits that separate all-stars from bench warmers?

- Missing My All-Star, Maryland Heights Business Owner

If you are still relying on word-of-mouth training and tribal knowledge you are putting your business at risk. 

The very best way to retain the knowledge of star performers is to capture that unique knowledge as part of your company's operations manual and standardized procedures.  By writing policies and procedures that clearly explain your unique business system and contain the unique details that only your All Star performers understand you can prevent costly "brain drain" and also improve your corporate training effectiveness.

Don't wait until a star performer leaves and you are left with a big knowledge gap to overcome. COMPROSE Zavanta software is designed specifically to make it easy for your "All Star" Subject Matter Experts to capture their special knowledge and share it with others through effective policies and procedures. It provides all the tools necessary for writing policies and procedures that others will read and use. You can learn how other organizations have successfully implemented this strategy at www.comprose.com.
 

In today’s economy, no organization can afford to tolerate wasting effort, staff time, or money on inefficient operations for long. Surviving in tough times means making the best use of available resources and that means eliminating waste. That’s where examining your business systems comes into it. “Systemized” organizations accomplish more, in less time, with fewer resource. Simply put, clear work processes make organizations faster and less wasteful.  

Just look at the illustrations at right. Which looks more like your internal processes? 

Be honest. Ask yourself: “How much valuable time gets wasted in my company because of unnecessary steps, confusion, and “everyone doing their own thing.”

When work processes follow inconsistent or—even random—paths employees waste precious time “guessing” what to do and re-inventing the wheel instead of accomplishing their goals.

The larger and more complex your organization, the worse this problem gets when there are no standards or systems in place.

For more on how standardizing operations can help you weather tough times, download our complimentary white paper: 5 Reasons Standardizing Operations Offers You a Life line in a Tough Economy.   This white paper explore 5 reasons standardizing operations is a smart strategy to help your organization weather the tough times—and thrive over the long haul.

How many times a day do you and your colleagues stop and interrupt a co-worker or supervisor to ask a question or get help in performing a basic task? 

According to a report in Time Magazine, on a typical day, workers are interrupted about 7 times an hour! That’s 56 interruptions a day, and 80% of them are considered trivial.  According to a study by Basex Research, interruptions cost the U.S. economy $588 billion a year.

In our own research performing operations consulting to organizations across industries, we have found employees in typical organizations spend an average of 10% of their days consulting with co-workers and supervisors for help performing routine tasks. That amounts to 45 minutes a day spread across a 7.5 hour workday. If you have a 300 employee company with an average composite wage of $20/hr, that time rapidly adds up to a labor cost of $1,080,000 a year! 

Organizations who have a clear system of standardized procedures available to employees in easy to access operations manuals can dramatically reduce the cost of interruptions, work stoppages, and lost productivity throughout their companies. When employees can simply look up the answer quickly and reliably, they complete their work more efficiently without interrupting others and that saves the entire organization.

For more ideas on how streamlining your business systems can reduce costs and improve organizational performance, download a copy of COMPROSE’s free e-book, How to Be an Operations SuperHero: 3 Frequently Overlooked Ways to Improve People Performance and Help the Bottom line. 
 

Whether you have an official Operations Manual or not, the people in your organization apply policies and procedures everyday to guide decisions and complete their work. You might ask, Why bother to write down standard operating procedures and policies and make them "official"?  Many organizations don't. They operate by "unwritten rules," informal policies and procedures that get passed on—or NOT—by word-of- mouth from employee to employee.

Well you've heard the old joke, an oral contract isn't worth the paper it's written on. Unwritten rules are the same. There's no accountability. There's always somebody who "didn't get the memo." When nothing is written down and standardized, your organization will quickly develop inconsistent and inefficient operations practices that can lead to big problems over time.

How do you keep from undermining your business with unwritten rules? Capture your unique "system" in tangible form that everyone can look at, refer to, and correct when necessary.

This is the very core of COMPROSE's Operations Mapping approach. By writing policies and procedures that clearly explain your unique business system you can guarantee that your employees make better choices on a day-to-day basis to prevent errors, streamline business processes, and succeed at improving organizational performance.

For more, see 5 Common Mistakes Executives Make that Derail Operations Excellence.
 

What’s the most important factor in reducing task errors? Employee Skills? Training Methods? or the “System” itself  (aka steps used to perform the task)? 

An interesting research study carried out by Michael Byrne of Rice University and Elizabeth Davis of the University of Texas overturns many common assumptions about employee training methods and performance improvement. They were interested specifically in why “post-completion” errors are so prevalent. In a post-completion error, a person correctly completes a series of actions but then fails—or forgets—to complete an essential final step. Running a complicated photocopying job but then walking off and leaving the original documents behind in the copier is an example of a post-completion error most of us can relate to.

To investigate this, Byrne and Davis created controlled laboratory studies and compared performance results using two distinct step sequences for completing the same task.   They also, examined the relative effectiveness of employee training methods (reprimand, reinstruction, and praise) on correcting post-completion errors. We found the results, published in the journal Human Factors, “Task Structure and Post-completion Error in the Execution of a Routine Procedure”  fascinating. They surprised even the researchers.

None of the “motivational manipulations (reprimand, reinstruction, and praise) had a reliable effect on altering task performance (for either task completion time or task accuracy)." The only group that consistently outperformed the others was the one that followed the better procedure in the first place.

When the standard procedure that test subjects followed included the “post completion” step within the logical sequence of the task (rather than as a separate “after task” activity), errors were drastically reduced.  The only difference between the test groups was the ORDER of the steps given in the written procedure test subjects followed.  Yet, the performance results showed a significant difference in error rate.

The implication for organizations wanting to improve organizational performance and reduce errors is to the most effective technique is to streamline systems and procedures. Changing corporate training methods and varying strategic management processes, such as reward versus reprimand, did not achieve the results that simply defining a clear, efficient procedure did.

For more on how streamlining your business systems can reduce errors and improve performance, download a copy of COMPROSE’s free e-book, How to Be an Operations SuperHero: 3 Frequently Overlooked Ways to Improve People Performance and Help the Bottom line. 

Okay. You know it’s really bad out there when you hear “the best investor in the world,” Warren Buffet, proclaim the economy just fell off a cliff.  Fortunately, in the next breath he went on to say that the tough times are temporary and America’s best days are still ahead.

Whether you’re an economic optimist or a pessimist, the critical question on everyone’s mind is: What are the best steps we can take right now to pull us through today and get us ready for the rebound?

This economic downturn is the ultimate wake-up call for everyone to get back to basics, and build leaner, more accountable, results-oriented operations no matter what. In good times, standardizing operations to improve performance and efficiency might seem like a “nice-to-have,” but in times like these, it’s a survival tool.

By refocusing on operations and eliminating waste you can gain a critical competitive boost so you can “out-tough” this lousy economy.

Click to download a complimentary white paper: 5 Reasons Standardizing Operations Offers You a Life line in a Tough Economy.   This white paper explore 5 reasons standardizing operations is a smart strategy to help your organization weather the tough times—and thrive over the long haul.

We thought this was an interesting point from the article Maintaining Employee Engagement During Tough Economic Times:

“With current cost-cutting, employees may find themselves with fewer resources and more work. Most of us will be required to do more with less. The 2008 Society for Human Resource Management (SHRM) Job Satisfaction Survey Report indicates that communication during these difficult times is critical. The ability to understand strategic direction and goals allows an employee to align his or her actions with those of the organization, make the best use of these scarce resources, and pull the organization through the storm.”

Helping all employess align their actions with the core business strategy is at the very core of our Operations Mapping approach. We have seen  over and over again that when employees understand how their work relates to the overall strategic direction of the organization they inevitably make better choices on a day-to-day basis to streamline business processes and succeed at improving organizational performance. However, many executives fail to make this connection and resort to empty mantras of "Do More With Less."

For more on effective strategies in tough times, see  5 Common Mistakes Executives Make that Derail Operations Excellence.

We’ve been blogging about steps organizations can take to survive and thrive in the Tough Times this week. A previous post, How to Make Your Organization Bulletproof  discusses how the secret to becoming bulletproof is to focus on efficiency, productivity, and contingency planning.  Another good article on the topic is Productivity Improvement For Tough Times  by Ben Carlson,  former Chairman of the Los Angeles County Productivity Managers Network and President of the Association for Systems Management. Carlson offers solid advice about measuring and managing productivity that's worth reviewing, and he makes this key point:

“Productivity improvement may be more important at this time than at any point in recent history.  Current economic conditions necessitate cost reduction to maintain profitability.  However, many companies are using a "meat axe" approach to the problem.  They are cutting the payrolls by laying off employees.  Sure this reduces costs, but without a more methodical approach, any long-lasting gains may prove elusive.

Tough times call for tough measures, but productivity management is simply a good business practice that is more important now than ever. . . .”

Standardizing operations in all areas of your organization is the foundation of productivity. By focusing on identifying best practices, eliminating waste, and writing policies and procedures which help everyone understand your unique business system, you can make big strides in boosting productivity.

As Carlson puts it, “Successful organizations . . .  consistently apply these principles, techniques, procedures, analyses, and processes aimed at creating a more productive enterprise.” 

To the COMPROSE Good Business Systems Squad, that’s just good business sense in a nutshell.

For more ideas on how streamlining your business systems is what forward looking companies do, download a copy of COMPROSE’s free e-book, How to Be an Operations SuperHero: 3 Frequently Overlooked Ways to Improve People Performance and Help the Bottom line. 
 

A previous post, “Is Layoff the Layoffs Good Advice?” explored the downside of the knee-jerk reaction many businesses take to negative economic news and the long-term consequences of that approach. 

This thought from the article “Surviving economic downturn with talent”   offers a similar spin on that topic from Ceridian, HR and Corporate Training experts from “across the Pond” in the UK.

“. . . Organisations need to ensure they have a pipeline of talent ready and waiting for when times improve. Forward thinking employers will seize the opportunity a business downturn offers to strengthen the talent pool.”

They also say:

"A carefully thought out learning and development (L&D) strategy sends a powerful signal in a crisis and acts as a great motivator."

While everyone else is running around claiming the sky is falling, successful, tough-minded businesses are looking forward. It’s fair to say that no matter how bad things might be today, they won’t stay that way forever.

That’s why one of the best things you can do in times like these is to create an Operations Map of your organization to identify opportunities to improve efficiencies. Then you can finally standardize operations by writing policies and procedures that truly reflect the very best practices for getting things done. Not only will this help your business right now to weather the economic storm by becoming lean and efficient—you will be ready to rapidly scale back up again when times improve. 

For more ideas on how streamlining your business systems is what forward looking companies do, download a copy of COMPROSE’s free e-book, How to Be an Operations SuperHero: 3 Frequently Overlooked Ways to Improve People Performance and Help the Bottom line. 

Maybe you’ve heard it on the news: times are tough out there—and likely to get tougher.  A quick glance at this February Optimism Index from the National Federation of Independent Business paints a pretty glum picture. Even if your business hasn’t yet taken a direct hit, no organization is completely insulated from the economic turbulence.

http://www.nfib.com/object/IO_39981.html

The question on everybody’s mind these days is what do we DO about it? How do we position ourselves and our companies to best weather the storm—so that we not only survive but thrive in good times AND bad?

That's what's on our minds on the COMPROSE Good Business System Squad as well. We’ve been thinking, researching and talking about these issues for years and in the next days and weeks we’ll be blogging about the role streamlining business processes and standardizing operations play in good times and tough times alike and share tactics that work.

Is there any GOOD news?

Yes. There is actually a lot organizations can do. Stay tuned for upcoming posts discussing a series of sound, proven strategies for maintaining productivity in tough times and paving the way for long term success by standardizing operations.

What are the big issues on your mind?

• Coping with the aftermath of staff layoffs?
• Maintaining productivity with fewer resources?
• Changing business processes to adapt to new challenges?
• Cutting waste and standardizing operations?
• Keeping up employee morale?

Post a comment and share what's on your mind.

The COMPROSE Good Business Systems Squad

In keeping with the New Year's tradition of making fresh starts in January, the COMPROSE Blogging teams, including the Good Business Systems Squad has taken a little time off to clear the decks, close out 2008 projects and gear up for 2009. 

Part of clearing the decks involved clearing the desks—weeding out all the old files, old projects, and miscellaneous odds and ends that take up physical and mental space and block progress.

Decluttering frees up space, energy, and restores focus so you can get more done.

You probably declutter your workspace when it starts to drag down productivity. The same things happen with your Business Systems. When was the last time you took a hard look at decluttering them as well.

• Are there old, outdated policies and procedures you no longer need?
• Are their tasks that have outlived their usefulness?
• Are you doing things the way they've always been done instead of looking for a streamlined business process that fits your current and future needs?  

The key to streamlining and standardizing operations is to eliminate all the "clutter" that gets in the way of achieving your organization's goals. Operations Mapping is a great tool to help "lighten the load" and pinpoint areas in your business systems that have become cluttered, confusing, and inefficient.

What are you waiting for? Start right now decluttering your organization's business systems and standardizing operations so you can free up resources and get more done.

--The Good Business Systems Squad

If you want your outsourced project to succeed start by defining the work first. Make sure you create a clear system that defines:

• the problem and specific outcome you want
• accountability (who does what, when)
• what the process is for getting the result you want 
• how you are going to manage that process  
• detailed work instructions and specifications 
• contingencies

A member of the COMPROSE Good Business Systems Squad was recently discussing this issue with the CEO of an IT consulting firm who summed up the issue in a nutshell. He said the biggest mistake he saw companies make was letting the outsource firm define the work.  You must do that yourself. Think your requirements through carefully and make sure it is CRYSTAL CLEAR – from start to finish what you want. Then communicate it.  “If you get 80% of your requirements down and then throw it out to the outsource firm because you got in a hurry, you’ll regret it later.” 

It's critical to write detailed instructions to increase understanding, because people hear things differently and note-taking skills vary widely.  Having a physical artifact–written procedures and specifications–will give you something tangible that will keep everyone accountable.

Some may say: Systemizing is too much work!  But creating a good plan and system doesn’t have to take a long time. And rarely have we seen anyone spend too much time; they usually don’t spend enough. If you want to minimize your time and maximize the results, check out Zavanta software from COMPROSE. It's a fast, proven tool for rapidly creating clear, easy to communicate “systems” to support outsourcing projects as well as for standardizing operations internally. 
 

If you decide outsourcing makes sense as a time and cost-cutting measure, before you forge ahead, consider a couple of the most common causes of outsourcing failures and what you can do upfront to avoid them. 

• Lack of upfront planning.  Like all other areas of life, it’s difficult to succeed at outsourcing without a well-thought out, written plan. Do you understand the true scope of work? Does everyone understand their roles and responsibilities? How will the outsourced project fit into your current operation?
   
• Miscommunication.  Ask any operations consulting or outsourcing expert and they will tell you: miscommunication is the key problem facing outsourcing relationships today. Think about your own situation. How many times have you left a meeting with people you’ve worked with for years and had an entirely different understanding of the boss’s instructions than your co-workers? Is it any wonder things get misinterpreted when you’re communicating with people outside your organization?  When outsourcing projects, it’s even more critical to have a clear Operations Map written down for all to refer to.
   
• Unrealistic, unaligned expectations drive cost overruns. Half way through a project have you ever heard: “ that’s not how we wanted it to work!”  Setting clear expectations is essential. Consider all the challenges of new employee orientation times 100 when you set out to work with an outside vendor on an outsourced project. Spell everything out or it will cost you.

Applying COMPROSE’s Operations Mapping method PRIOR to outsourcing projects is a proven way to overcome ALL these common obstacles. Before you take the plunge to outsource work, find out how you can increase the odds of success by creating a good business system.