One of the biggest hindrances to operating a successful business is the failure to do things right the first time. Rework of any kind, whether on a production line or building a database, is a waste of time. What’s worse, is that anything that is wasted in business has a cost associated with it.
In an office environment, the cost is probably in labor, not only because of having to pay someone more than once to do a task, but because, while they are involved in a do-over, they cannot address their other responsibilities that they are paid to do.
In a manufacturing environment, there is usually material waste in addition to the wasted labor. Material waste becomes scrap. Scrap sells for pennies on the dollar. So, instead of getting a 100% markup on the item, you sell it as scrap for as much as a 95% discount.
There are generally two reasons why things have to be done over.
The first is failure to define your processes. Entrepreneur and host of the CNBC hit, “The Profit,” Marcus Lemonis, has a simple, three-part formula for success in any business:
People – Product – Process
If any one of the three is broken, the business will eventually collapse. Experience has proven, more often than not, that the unfortunate root cause of businesses closing is the failure of ownership and management to clearly define all of their business processes. However, that is not typically recognized, because failed entrepreneurs can’t blame the process. So, on rare occasions, they blame themselves, but generally, they blame someone else.
Planning processes is, for some inexplicable reason, burdensome to many business owners, so they don’t do it. Instead, they “save time” on the road to the failure of their business.
The second is failure to control your processes. That control begins with documentation. Employees should not be expected to follow verbal instructions, because verbal instructions are too easily (and too often) changed. The end result of that is confusion. Anyone involved in any business process should be able to access a document that defines the process. That’s called “making sure we are all on the same page.”
Processes are controlled by ensuring that flow charts, milestones, and specifications and documented and measured against the standards for the process.
When processes are documented and controlled, things run more smoothly and wasted time, material and money are reduced.
One final point. No one – not even the CEO – should be able to make any undocumented change to any process. What is written is written. It may be revised, but the revision must be documented and all parties to the process must be notified of the revisions before they are implemented.
Don’t fall prey to the idea that your company can survive without controlled processes. No one can really afford the extra time required in our opening oxymoron. Except, perhaps, for a moron.
Application: Digital Marketing is a process. It needs to be documented and controlled. If you lack the expertise, we have the time. Let Pathmaker Marketing help make your digital marketing a raging success. Contact us today via our website, or call at 1-800-224-2735.