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Fine-Tuning Your Business Processes Helps To Rev-up Your Bottom Line

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					 Fine-Tuning Your Business Processes Helps To Rev-up
                  Your Bottom Line
                                                                     By
                                                                 Terry H. Hill

There are three key business processes involved in operating an entrepreneurial enterprise—management,                                             1
strategy and operations. Ideally, all three business processes are tightly integrated. The management process
provides a framework for hiring, training, and managing employees. The process not only helps employees
become more effective in their positions, but it also helps to improve employee retention levels. The strategy
process establishes both short-term and long-term goals. It clearly defines where you want to take your business in
terms of earnings, sales, and revenues, and it also clearly defines how you plan to get there. The strategy process
becomes your road map. And finally, the operation process provides the tools and the resources for achieving your
goals.

A business enterprise should be thought of as an entity--one that is operating as a whole. Although individual
projects and processes appear to be working independently, they are interrelated and are focusing on the
company’s short and long-term goals. Effective project and process management is about the systematic
breakdown of the business operations into smaller, well-defined parts -–components that are more manageable on
both a macro and a micro level. The macro level’s focus is on achieving high-level organizational goals/objectives
and on creating processes that enable the business to better achieve those goals/objectives. The micro level’s focus
is on breaking down the various jobs, as well as their individual tasks, into smaller steps/components.

Breaking down complex projects and/or processes into more manageable parts is a valuable key business
practice since attempting to deal with multiple, complex problems simultaneously results in inefficiencies,
delays, confusion, and stress. Achieving short and long-term goals, meeting targets, and handling day-to-day
issues become much easier when tasks are divided into mini-steps. When each mini-step is completed, employees
experience a sense of accomplishment rather than feelings of frustration that often arise when dealing with the
whole versus its individual parts.


Standardization better positions your business to succeed.

Many early-stage entrepreneurial enterprises, as well as established companies, under-perform! They are
typically characterized by having an informal management system, ad hoc procedures, and, at times, an absence of
standardized systems and processes. In order for enterprises to flourish into profitable businesses, standardization
of processes and procedures is essential. Very few businesses can manage effectively without standardized
processes. Without standardization, most likely, things will not get done on a timely basis.

Effective and efficient business processes depend on standardization. Standardization means that all your
employees will perform a task in the same way, every time the task is performed. Setting standards for how things
should be done, and then, documenting the steps of the process to meet those standards, are critical initiatives that
your company must take if it is to grow and reach its potential. Once basic systems are in order, jobs and tasks are
done more efficiently and effectively, and decisions are made with greater ease and with greater reliability.

The absence of standardized systems is a major yet very common cause of under-performance by businesses.
“Flying-by-the-seat-of-your-pants” management creates inconsistencies and ultimately leads to chaos. When basic
systems and processes are developed for performing easily replicated, day-to-day tasks, your business is better
positioned to produce more consistent results.

Standardization of business processes applies to procedures, standards, work instructions, and guidelines for
various business functions. Standardization is about creating a clearly defined system that enables everyone to do
their best work. Proper standardization of the business processes also includes the creation of an Operation
Manual.



Terry H. Hill is an author, consultant, trainer, mentor, and the founder/managing partner of Legacy Associates, Inc., a business consulting firm
based in Sarasota, Florida. Legacy, http://www.legacyai.com, is the parent company of the online small business, entrepreneurship, and
management training website, http://www.TrainingforEntrepreneurs.com.
 Fine-Tuning Your Business Processes Helps To Rev-up
                  Your Bottom Line
                                                                      By
                                                                  Terry H. Hill

The Operation Manual is a written document which clearly explains to all employees the standards of                                                 2
operation, and identifies the operational tasks required to establish and operate the business. The Operations
Manual supports and promotes the use of consistent and uniform, day-to-day procedures within the business unit
for the purpose of maintaining the quality of its services and products. The Manual further defines the company’s
system of standard processes, procedures, and guidelines. It outlines the procedures for hiring as well as the
procedures for employee training and development.


Simplifying your business operations is critical.

In today’s competitive market, how you deliver your products/services is most often what differentiates your
company from your competitors. Is your company efficient and productive? Or have your company’s processes
become cumbersome, unwieldy, and out of control?

Business growth does not necessarily equate itself with business growth complexity. Success sometimes hinges
on elegant simplicity. Many times, when companies expand as a result of rapid, unplanned growth, they do so
without a carefully orchestrated plan. The absence of an adjusted plan--that meets increased business demands--
creates complex, inefficient operational results.

Many businesses find themselves with staff, resource, and equipment redundancies; lack of formal systems;
duplicated efforts; and no clear line of sight to the strategy driving the business. The solution to this problem is
to assess the business from a big-picture perspective and streamline its operations. In order to effectively simplify
your business operations, consider these tips.


     •    Analyze existing business processes.
     •    Identify gaps in efficiency and productivity.
     •    Develop a solid plan that redesigns and formalizes processes.
     •    Prepare and obtain support from partners, investors, managers, and employees for necessary changes.
     •    Prepare your company for change.
     •    Establish performance benchmarks.
     •    Roll out the plan using a phased approach.
     •    Monitor and evaluate progress.
     •    Consider outsourcing processes that you cannot handle in-house.

Efficiency and profitability go hand-in-hand. The more efficient the operations become, the more profitable
businesses become! When a business demonstrates efficiency, it is far more productive since waste and effort of its
valuable resources (time, money, and people) are at a minimum. That is why businesses with fine-tuned business
processes are some of the most profitable companies in their respective industries.

By simplifying and standardizing your business processes, you will achieve your goals and realize the full
profit potential of your business!

Copyright © 2010 Terry H. Hill, Training for Entrepreneurs.com
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Terry H. Hill is an author, consultant, trainer, mentor, and the founder/managing partner of Legacy Associates, Inc., a business consulting firm
based in Sarasota, Florida. Legacy, http://www.legacyai.com, is the parent company of the online small business, entrepreneurship, and
management training website, http://www.TrainingforEntrepreneurs.com.

				
DOCUMENT INFO
Description: Efficiency and profitability go hand-in-hand. The more efficient the operations become, the more profitable businesses become! When a business demonstrates efficiency, it is far more productive since waste and effort of its valuable resources (time, money, and people) are at a minimum.