Reassess the Process

 “The only Constant is Change” is a very old theme.  The idea has been used by many from Greek philosophers to Isaac Asimov.  It has been re-written and rephrased, but the essence is clear, “Nothing Lasts”.

Remember that when you implement the next best business software (ERP, PLM, CRM, etc), your SOX compliant Operation Narratives, or the simplest Material Requisition form. They are destined to change.  They should not be left to wither and die, but evolve and flex as your business changes.  The reasons are endless. “Our company has grown”, “We released new products”, “We now have multiple manufacturing facilities”, “We lost our Key person, who knew how it all worked”, and on and on.  You can hear the effects, “Lately, we are always behind", “I need more people”, “Why do we have too many of the wrong parts?”, "Sales complaints are up”, “Moral is dropping fast”, “Why can’t we make this process faster?” (insert your complaint here)..

How will we know when it is time to change? How can we be prepared? (We must respond before the mobs arrive with pitch forks and torches.) It is really very simple: Be aware. (Be Very aware).

 ü      Gather Data: We have to monitor activities and create Performance Metrics. Identify crucial responsibilities for each department (On Time Shipments, Shortages, Manual Journal entries, Inventory Turns, whatever…) and measure them. Regularly.

o       Be honest with the findings.

§         When we find the missing transaction and correct the entry, it doesn’t mean the Cycle Count was correct.

§         You are still late, even with a good reason.

o       Create monthly performance reports for each department or use dashboard methods.

o       It is important to monitor these measures and set reaction limits. (You do not have time to chase everything) You can base your Business Alerts activity on these limits.

o       Publish the results on the company intranet or network folder.

 

ü      Review the findings regularly and discuss them with the team.

(Key terms: “Regularly”: and “Discuss”).

o       Open a dialogue with the key players. Talk about the results and detail deficiencies (Why did we ship fewer items this quarter?), possible reasons (Shortages because of late Vendor deliveries and inventory errors) and obstacles to overcome (more Cycle Counts required).

o       Select an area of concern and get more information before the next meeting.

§         Is it really a problem? Sometimes it a matter of perspective and is revealed with more research. (I wasn’t aware my process change would effect your department).

§         Do we need more training?

§         Is the process flawed? (What are the problems/obstacles/opportunities?)

 

ü      Reassess the Process – Objective review of existing processes. Schedule this less frequently and can be completed with internal resources or using outside resources.

o       Develop a core group (similar to Internal Audit Teams) to review and recommend changes to crucial processes yearly.

o       Contact your business software provider. Expandable Software offers their “Tune Up” program “serves as a useful checklist to pinpoint the optimal system usage model for your company and can include Needs assessment and plan development, Evaluation of actual software usage, Database updates and clean-up, Additional module implementation recommendations, if applicable, Training on new releases and enhancements; or One-on-one instruction to enhance existing knowledge or train new employees”

o       Contact a consultant you know and trust for an overview assessment.

 

Get moving.  Your business is changing.  Ready or not, here it comes…wc