How Systematic Business Management Yields Growth?

Reorganization of a business to bring systemization is important for any business. But it is necessary to understand what, in fact, we will be dealing with, that is, to build a visual model of “the company as it is now”, describe the model “as it should be”, compare the results and draw up a plan for the transition from now to the systemized management. For example, many PPC advertising agencies have worked with approach to bring about great results.

Whatever the specifics of our business, we must adhere to the following steps.

1. Describe the processes in operation: this can be a graphical model with attached descriptions of sub-processes, which will allow you to determine the list of flows that need to be systematized.
2. We define repetitive, cyclical tasks (for example, purchases) and analyse optimization methods: we eliminate redundant constructions, look for ways to shorten the cycle, simplify the procedure for entering the process, interacting with adjacent BPs.
3. We prescribe the necessary sequence: we define a new scheme of activity, its life cycle.
4. Getting started:
   – Making a list of employees’ skills in order to understand whether the qualifications of our personnel correspond to the written QC (competency maps);
   – We set up workplaces according to the implemented functionality (for example, we provide offices with access to the local network, purchase equipment for landing stages, or vice versa, get rid of unnecessary automation);
   – We support the directives with appropriate legal documentation: job descriptions, regulations on divisions, schemes of interactions between structures;
   -We create criteria for Key Performance Indicators (KPI) – key indicators for determining the effectiveness of the structural link and the organization as a whole.
5. We implement processes, tracking the implementation of individual stages according to the schedule of target dates, assess the result, analyse problems if necessary and make adjustments.

It looks simple, but it is not for nothing that the owners of even large companies with extensive management experience prefer to invite professionals to reorganize, rather than placing this task on their managers.

The reason for outsourcing these tasks is very simple: neither the owner nor one of his managers, as a rule, have the competence sufficient for in-depth analysis and understanding of all production flows of the company.

Reasons for the failure of BP reorganization

Lack of competence leads to systemic errors that lead to failures in sub-processes:

• Incorrect goal setting, incomprehensible to line personnel;
• Lack of clear internal standards at the time of the start of systematization;
• Imperative introduction of innovations without involving middle managers in the development of the model;
• Ineffective use of automation tools.

Savings on training

Another major and common mistake of senior management is the incorrect assessment of the professional level of personnel. There is no need to neglect courses for retraining or advanced training of employees. For example: we had a seller and a loader at our outlet, after optimization there was only one combined position left – a seller-loader. 

The seller is well versed in the principles of calculation, knows how to give a full consultation on the product, but was he taught how to handle the conveyor for supplying goods to the warehouse, a freight elevator, and other equipment? Or ten salesmen-loaders will learn to handle the equipment themselves; five will carry the goods by hand, stumble on the stairs and get injured at work; and seven will be confused and prefer to quit?

The same principle works at all levels: if we introduce a new business process called cold calling, we need to make sure that our employees understand how it is done; if we assign control over a new project to the manager, then he must clearly know the monitoring algorithms, etc.

Staff resistance

Most people prefer stability and predictability in their work. Failure to understand the need for change leads to staff resistance, ineffective work, and sometimes direct sabotage of the introduced innovations.

It is perhaps impossible to completely avoid this phenomenon. However, you can reduce the heat of dissatisfaction if you act within the framework of information transparency: to explain to employees the goals, methods of innovation, the benefits that the company will receive, and with it its employees. To increase the popularity of innovation, it is useful to enlist the support of key employees, old-timers of the company, and informal leaders. 

At the same time, you need to make sure that line managers are able to convey the essence of reorganization to line personnel in a simple, understandable form.