Are you frustrated with your company’s lack of growth or the effort required to boost performance? Are inadequate policy and procedure a root cause? Taking this simple self-assessment can determine if this may inhibit real company growth.
Q. Is it possible to take an extended vacation without the company falling apart?
A. When you answer “no,” you are working for someone else and not running a business. A business should set up standard operating procedures to ensure the work is done correctly, even in the owner’s absence.
Q. Would your company handle an increase in sales and production?
A. An increase in sales and production usually reveals hidden inefficiencies. Having low turns on accounts receivables and inventory, long sales, or production cycles will starve your cash flow. It is important to document cycle times for your critical operating metrics in your policies and procedures.
Q. Is your organization capable of adding more people effectively?
A. It’s easier to hire people than to ensure they know what they’re doing and have the resources to do their job well. By establishing policies and procedures for a management system, it is possible to oversee new employees and keep track of who is responsible for what and when.
Q. Does opening a new branch office, plant, or facility create havoc?
A. Expanding your operations into new locations will challenge your policies and procedures. Isn’t it interesting that franchises have a better chance of surviving than startups because they have well-defined operations manuals? What is your business model like? Do you operate it like a franchise?
Q. Is your family happy with your work life?
A. If your business requires too many hours, too much stress, and too little quality time with family and friends, you need to change. When standard operating procedures are well-defined, vacations are easier. Sales increase easily can add people to meet demand and open new offices without worry. If you do this, your family will be the happiest.
Conclusion
If you’re frustrated with your company’s or individual performer’s lack of growth, inadequate policy and procedure may be a root cause. Be sure to take action to address these issues, and look for ways to grow your business even faster!
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