Introduction
Operations is the engine room of the business because it is where the
product or service is made and delivered to the customer. Most small
business owners are experts in this and the business grows from there.
But as the business grows, the owner has to move from being directly involved
into a more hands off/managerial role and work quality may suffer as staff
and contractors rarely deliver to the same high standards as the founder.
This can lead to a loss of customers and hinder gaining new work due to a
weakened reputation. Another effect is reduced profits as costs are driven
up by rectifying increased errors and waste. Thus the business stalls and
remains at the size the owner can still grasp it all personally.
This widespread problem is often never solved but can be overcome by putting
operating systems/procedures in place and then managing staff and contractors
to follow them at the same high standards that the business has been built on.
Good operations management ensures that all jobs are delivered on time,
in budget and to the customer’s specifications. This will directly affect
the number of customers who come back and can also help generate word of
mouth advertising and referral. Bear in mind that it only takes one bad
experience to damage the excellent reputation which may have taken 10 years
to acquire.
So are you experiencing any of these?
- Jobs usually come in over budget
- Jobs or supplies normally delivered late
- Lack of repeat business
Actions
In order to gain a better understanding of your situation, we start with a
professional operational analysis. This assesses how you make your products
and deliver your service; then it finds out what your customers think and
whether they would recommend you. We will also examine your productivity
and what processes/procedures you use to guarantee customer satisfaction.
These results will also highlight the marketing strengths and opportunities
that this presents and how you can better exploit them. It will show the
areas that you can improve; for example, you may deliver a fantastic service,
but it takes too long and costs too much more than competitors. So we will
identify the changes you can make to win customers back and increase profits
Operational analysis will identify:
- Where errors and waste are preventing jobs being done right 1st time
- The work methods that are hindering productivity
- Areas where quality and customer satisfaction are being adversely affected
Deliverables - what you will get from this
The Operations Action Plan will list precisely what needs to be done in order
to fix your urgent issues. This will enable you to develop a more efficient
business, delivering the consistently high standards of service that first made
the business successful and drive up the level of repeat business. After all the
best (and cheapest) form of advertising is word of mouth.
The outcomes will be:
- Jobs completed on time
- Jobs completed to budget
- More repeat business
- Improved profits from greater efficiency
Suggestions
It is always best to examine all areas of your business as they support
each other. Focusing specifically on Operations will help improve your
product and service delivery. Its important to ensure that you can deliver
the same service that your sales team/advertisements are promising. Good
project management skills will help you better manage your work and ensure
everybody knows who is doing what and by when.
Typically, Operational excellence will help improve:
- Repeat sales
- Recommendation and referral
- Business growth
- Profits
- Cashflow
- Efficiency
- Productivity
The Big Picture
Ensuring your business is running effectively and efficiently reduces costs,
generates repeat business and extends your company’s life span.
Clear procedures and the people who can operate them will make your business
attractive to sell because it means that it can run effectively and without
constant intervention by the boss. It also frees up personal time so you to pursue
other things in life e.g. time with your family, hobbies or other business
opportunities.