Photo Credit: Brie Odom-Mabey; Unsplash
Photo by Mark McGregor on Unsplash
Part 2: The 5 P's of Operations Management, Process
This blog is the second in a 5-part series where I’m breaking down the 5 P’s of Operations Management.
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People
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Processes
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Products
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Partners
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Performance / Profit
In case you missed part one, it dealt with the most foundational pillar on this list, People. So, if you missed it, Read “Is Nurturing a Motivated Workforce Worth it? - before you read Part 2.
Why?
Because if you don’t get and keep great people you will NOT be able to create and run great processes.
In fact, you’ll be stuck with having to create all of the processes yourself! Then, you will have to be in every one of them to keep them running.
You will be trapped and run the risk of burning out and jeopardizing the future of your business.
Now, let’s jump into the Process “P”.
Master Your Next Level Business Processes
As business owners and leaders, you understand that the success of your organization hinges on efficient and effective operations, at least you should.
In the realm of Operations Management, the "Process" component plays a pivotal role in achieving operational excellence.
However, a lot of businesses, especially small businesses, don’t have a system to create and run winning operations processes. They simply “fly by the seat of their pants” every day just trying to get by.
This is NO way to run a business and you will NOT grow.
Take it from me, I’ve been there. It’s not fun!
You will deal with lengthy meetings and so many emails you can’t keep up with. Not to mention frustrated team members that come to work deflated because they have to reinvent the wheel every day to try and keep productivity just at status quo.
So, I’m going to give you a comprehensive list of areas in your business to create processes and give you suggested processes to start creating in each of them.
This will help you to master next level processes so that you can enjoy your work again and sustain your business for years to come.
The Secret Sauce - Core Processes
First, let’s lay the foundation.
We all have processes whether they are good or not. But, core processes are essential actions that will actually run your business for you, if you get them right.
This is because everyone who is involved in the process helps create them and they are documented where everyone can easily access them.
This helps everyone to take “ownership” of each process and their outcomes.
Here are two benefits of having core processes in place.
1. They ensure that business doesn’t stop if a team member is unavailable.
I can’t tell you how many times I’ve heard over the years, “So and so is out sick this week so it will have to wait.”
No!
If a process is vital to your business’ success then the core processes will help keep the “ball moving down the field” to service your clients/customers.
This means all the people involved should know what each step entails and is automatically cross-trained to perform all the steps, if necessary.
2. They ensure repeatability and scalability.
Have you ever forgotten how to do something overnight or in a day or two? Your memory is probably better than mine but I do know you are human and we all forget things, eventually.
The last thing we want to forget is how to deliver top-notch service to our customers/clients every time no matter who is in the roles.
So, having well documented core processes ensures that they get your business’ best, every time.
Not to mention, this will help you grow your profits and allow for you to scale the operation and adapt the current core processes to accommodate more business volume.
Common Core Processes
Now, let’s get into creating your core business processes.
Another name for Core Processes is Standard Operating Procedures (SOPs). I’ll refer to them as SOPs.
If you have never documented SOPs then here are 15 critical areas to consider developing SOPs for your business.
Please note, these are general categories that often need SOPs. However, the specific SOPs within these categories will vary depending on the nature of your business.
1. Sales and Marketing-
- Lead generation
- Sales process
- Marketing strategy
- Customer acquisition
2. Customer Relationship Management (CRM)- Customer onboarding
- Customer support
- Retention and loyalty programs
3. Financial Management- Budgeting and forecasting
- Accounts payable and receivable
- Financial reporting
- Tax and compliance
- Recruitment and hiring
- Employee onboarding
- Training and development
- Performance management
- Product design and development
- Quality control and testing
- Release and updates
- Inventory management
- Supplier selection and management
- Order fulfillment
- Manufacturing processes
- Service delivery processes
- Workflow management
- IT infrastructure management
- Data security
- Software development and maintenance
- Quality control processes
- Quality assurance checks
- Safety protocols and procedures
- Emergency response plans
- Regulatory compliance
- Contracts and agreements
- Project planning and execution
- Project tracking and reporting
- Document creation and storage
- Knowledge sharing and management
- Feedback collection and analysis
- Continuous improvement initiatives
- Disaster recovery plans
- Business continuity plans
The Next Step
Now that you have determined the core areas of your business that need SOPs, you work with your team to create bullet point directions.
For example:
- Sales and Marketing (Core Process)
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- Lead generation (SOP)
- Marketing Department (Who) creates social media post (What) - Daily (When)
- Lead generation (SOP)
Be sure that each SOP includes the Who, What and When of the process.
The How comes in the departmental SOP in greater detail. This is just your high level SOPs for all to see. It will also allow you to easily trace it to the respective department and then people involved.
You would then continue to list all the lead generation strategies below in a simple one line bullet point.
Then, it falls on the department to take ownership and create their own more detailed SOP to be able to get this result. This should be reported and given access to their direct supervisor.
Embrace Excellence and Grow Your Business
In the complex world of Operations Management, mastering the "Process" component is crucial for business owners and leaders.
They will help you maximize your business’ efficiency, quality, cost management, scalability, and adaptability. You can drive your organization towards operational excellence, ensuring sustainable growth.
If business leaders and owners embrace operational excellence in the 15 fundamental areas of a business. Then, they will also decrease risk, properly use technology, retain employees, ensure compliance, establish strong KPIs, commit to continuous improvement, and increase customer satisfaction.
If you choose not to then eventually you will understand just how much your processes directly impact customer satisfaction, in a negative way.
For example, you will not have processes in place to properly evaluate the effect of your operations on the customer experience and be able to make adjustments to enhance it, before it’s too late.
Mastering the second component of the 5Ps of Operations Management, Process, is key to building a culture of excellence in your business and long-term success.
If you identify your core process and write simple but direct SOPs you will be able to fulfill your business’ mission for years to come!
Enjoy the Process!
Grow more. Risk Less
Ways I Can Help you Grow More & Risk Less
- Master Operations with my course for only $149!
- Schedule a FREE Strategy Session
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