1 Taking Control, Stabilizing Your Business and Preparing for Growth Presented by: Linda Hale and Jerry Armstrong Copy Right © All Rights reserved to Best Directions and Jerry Armstrong 2010

2 Best Directions, , We can’t grow in this condition. We don’t know what is happening in our own office. What do you mean by take control? Our company is stable!

3 Is not about doing it all yourself or working 24/7 – A tendency of Entrepreneurs – This limits growth potential Is not about micromanaging Is about Enabling Taking Control Best Directions, ,

4 Is establishing a good structure/framework – Creating a Solid Foundation – Standardizing – Controlling Is providing good communication Methods Stabilizing Your Business Best Directions, ,

5 Is about enabling yourself to delegate – Ensuring Employees and Contractors know: what you expect of them how to do the tasks you expect them to perform/complete – Ensuring Customers receive a consistent product (s) and/or service (s) Preparing for Growth Best Directions, ,

6 Policies Procedures Work Instructions The Tools Best Directions, ,

7 In order to communicate effectively you will need to know how we define the terms we will use. Or shall we say, “get on the same page”? 7 Getting on the same Page: Best Directions, ,

8 CIA WASP SOS WIN SAR SOP A&W BA ITIL ISO AAA DVD FBI UA OH BAR IIBA Do you know what the following Acronyms stand for? Best Directions, ,

9 How did you do? Best Directions, , CIA – Cleveland Institute of Art (7) WASP – Women Air force Service Pilots (15) SOS – Support on Site (24) WIN – Women International Network (10) SAR – Student Aid Report (15) SOP – Senior Officer Present (14) ETA - Electronic Transfer Account (3) A&W – Alive & Well (11) BA – Bad Attitude (14) ITIL – Information Technology Infrastructure Library (1) ISO – I’m So Old (9) AAA – Anti-Aircraft Artillery (16) DVD – Direct Vendor Delivery (4) FBI – Food Borne Illness (11) UA – Unmanned Aircraft (8) OH – Oh Hell (7) BAR – Browning Automatic Rifle (6) IIBA - International Indian Bar Assoc. (3)

10 Definitions What are Policies? Policies: Policies are rules established by management. All procedures and work instructions are governed by policies. 10 Best Directions, ,

11 Definitions Processes : Are ordered tasks initiated by people using, methods, tools, environment, and materials/information to convert given inputs into outputs of added value. Procedures : Procedures define and document the major processes within an organization. Often these are called operating procedures. 11 Best Directions, ,

12 Definitions Work Instructions: Work instructions describe and document specific tasks associated with each activity and explain how each task is performed. 12 Best Directions, ,

13 Policies, Procedures and Work Instructions Best Directions, , Policies Procedures Work Instructions Receiving Purchasing Accounting Planning Departmental Policies

14 Policies, Procedures and Work Instructions Best Directions, , Policies Procedures Work Instructions Receiving Purchasing Accounting Planning Departmental Policies

15 Examples of Topics the Entrepreneur Should Address Internet Communications and Social Media Financial Production Sales Business Continuity Regulatory 15 Best Directions, ,

16 Effect on the Bottom Line and Growth Customer Satisfaction (Internal and External) Controlled Run Time Quality Employee Morale Found or Missed Opportunities Sales Process Improvement Software Planning and Selection Audit Results Fines and Penalties 16 Best Directions, ,

17 Causes of Poor Procedures and Work Instructions: No Policies Lack of Stakeholder Input Not Standardized Not Documented Not Maintained or Updated Lack of Communication (before, during and after) 17 Best Directions, ,

18 How to Identify a Good Procedure or Work Instruction Supports the company's Values, Vision, Mission Adheres to Policy It accomplishes its objective Reviewed and Approved by Management Periodically Reviewed and Updated Best Directions, ,

19 Case Study Truck Loading Use of Standard Work Instructions (SWIs) Best Directions, ,

20 Case Study Truck Loading – Use of SWIs Situation – New dock hand - No Work Instructions – Loading eggs on truck Result – Eggs break in transit – Driver calls out dock hand Fix – Create SWI for loading trucks 20 Best Directions, ,

21 Developing Good Procedures and Work Instructions Best Cycle 21 Best Directions, , Identify the Need Improve Process Stakeholder Input Develop Work Flows Develop and Write Review Disapprove Cycle Diagram Copy Righted © All Rights reserved to Best Directions 2010

22 Maintaining Good Procedures and Work Instructions 22 Best Directions, , and Ensuring Continuous Improvement Stakeholder Input Develop Work Flows Develop and Write Review Communicate Train Post Periodic Review Approve Disapprove Best Cycle Cycle Diagram Copy Righted © All Rights reserved to Best Directions 2010

23 Standardization Standard Operating Procedures (SOP) and Standard Work Instructions (SWI) What makes a procedure or work instruction standard? – Standard process – Reviewed and approved by management – Written and has a standard content – Posted where they can be referenced by all employees Best Directions, ,

24 Components Policy Purpose Scope Definitions Responsibilities Detailed Steps Related Documents SOP and SWI Standard Best Directions, ,

25 Communicating / Training Employees, Vendors/Suppliers, Customers How do you effectively communicate – Written – Posted online (intranet and internet) – Hard Copy Training – Hands on / Demonstrations / Computer Based Best Directions, ,

26 Things to Consider Governance Committee/Group – Management Team Engage Relevant Stakeholders – SMEs – Customers (Internal and External) – Suppliers (Internal and External) Independent Review – Advantages – Specialists in Process Document and make available – Select your writers SMEs or non SMEs? In-house or external specialists Cost of Not Acting Investment in Future Profitability 26

27 Return on Your Investment Your Return on Investment (ROI) is: Continuous Improvement Tool That: – Identifies shortcomings Evaluate process – Creates an environment that encourages positive input – Facilitates updating for changes in regulations, etc. – Facilitates changes needed by customers Mitigated Risk Management Perceptions and Expectations Insurance that the company’s values, mission and vision are understood and will be carried out 27 Best Directions, ,

28 Remember! Knowledge is Power. Take Control of your Business and its Future. Best Directions, ,