How can we afford not to? - Eagle Corporate Advisors

June 13, 2024

When thinking about operations, remember every business operates — some just operate better than others. Whether your approach to operations is reactive or proactive determines how smoothly your team handles day-to-day activities as well as unexpected crises.

The fallback position for many business owners is to be reactive and deal with things as they occur. They don’t realize this will turn every hiccup into a fire drill. Team members must invent solutions on the fly, often while under stress, essentially sewing a parachute while in free fall.

A proactive approach requires an investment of time to formulate procedures and plans beforehand. This investment keeps minor issues from turning into emergencies, as it provides your team with solid instructions that were created while everyone had the time and mental energy to carefully consider options and weigh consequences.

Procedures are the how of your business. Yet many business owners feel trapped by everyday tasks and can’t imagine taking the time to sit down and seriously plan out operations. Their first question is “How can we possibly afford the time to sit down and plan procedures?”

At successful companies, the question is “How can we afford not to?”

ChuckM@EagleCorporateAdvisors.com

BrianM@EagleCorporateAdvisors.com

(702) 451-3250

Finding time for operations

The process of laying out operations will take time and effort. Here are a few ways to fit this work into your schedule with the least amount of disruption:

• Discuss procedures in weekly staff meetings.
• Set a time to refine and clarify operations on record thus far.
• Each week, consciously commit to tackling one step or process.
• Record your progress in a living document that is continually refined.
• When problems arise, audit the situation immediately and add to the living document.

Remember that unexpected problems will arise, as no one can foresee all possible circumstances and every team is made up of human beings who will occasionally make mistakes. Even the most proactive approach must include some room for a bit of reactive work.

When a crisis occurs, being able to refer to a playbook rather than making up each plan on the fly makes for quicker responses and better decisions — adding up to a more optimal outcome in any given situation. Think of the checklists pilots and mechanics rely on for safety. These lists streamline efforts and protect the mission, whether it’s safeguarding lives or manufacturing widgets.

Another benefit to standard operating procedures is confidence. Staff members are human beings, and it’s natural for people to want to avoid conflict. If a team member has established procedures on their side, they can more easily approach a coworker, supervisor, or different department when they notice an issue, preventing crises before they start. When problems do occur, leaders can pull up the standard operating procedures to clearly communicate what went wrong and show a team member how to do better next time. Fixing problems this way can then evolve into automating and speeding up processes.

Ironically, this natural aversion to conflict is what holds back many business owners from crafting standard operating procedures in the first place. It’s the path of least resistance to avoid addressing the small problems and just adopt the “if it ain’t broke, don’t fix it” approach. Pushing yourself to be proactive in your operations is worth the time and effort, and it should be part of your regular routine.

“Watch the little things; a small leak will sink a great ship.”

– Benjamin Franklin

Well-crafted standard operating procedures form a strong organizational foundation for your business, adding to its value and making every aspect flow more smoothly. That foundation must be accessible to team members and reviewed on a regular basis to continually evolve as needed. Refining your procedures gets easier as you go, but committing to the initial effort can seem daunting.

If you need help taking that first step, call Eagle Corporate Advisors to set up a meeting. You can also access our fast, free online Altitude Assessment here to see how your business stacks up right now.

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