Good business systems are about preventing fires, not fighting them

By MALCOLM DENNIS*

Small- and medium-sized businesses often ignore the benefits of conducting a business systems audit.

This often happens because when business systems need attention there are so many fires that there is little time to even consider stopping for a review. Urgent issues can include cashflow problems, tetchy creditors, high bad debt, roster stress, poor customer records and unattended paper mountains.

Overstaffing occurs because job functions are blurred and it is easy for people to look busy.

Here are four examples where systems reviews paid off:

* A consultant carried out a staff review for a busy (chaotic) retailer. The owner was looking at a supervisor's role because the incumbent gave notice.

The position paid a higher salary than other members of the team. All roles were reviewed (5) along with the supervisor's and when the job functions were detailed, there were only two items the supervisor did that team members did not normally do. It took no time at all to refocus the team and appoint one of them as team leader.

Result: The company saved $30,000 in overheads, the team leader was thrilled, team morale improved, and the employer was delighted.

* A senior business partner wanted to take an extended holiday.

He was also the company's IT guru and held the fix-it knowledge for many computer issues, but there were gaps in the documentation of the computer system.

Solution: A documenter, contracted for two weeks, used a custom software package and drained the partner's mind of the hidden gems no one else knew about.

Outcome: The partner and his wife enjoyed a three-month holiday and while he was away, many small fixes were easily dealt with.

* A pharmacy manager spent too much time reminding staff about things that had to be done.

He also found it difficult to reallocate some of the work because that involved training and he never seemed to have extra time available for it.

In desperation, he installed some systems software and over one weekend he documented how the checks should be done.

Life has changed. The checks are being done and he has been able to move some people around because what to do is documented.

* A rural veterinary practice needed two new graduates to make its business plan work. This is a competitive situation so the practice manager made a list of issues requiring attention to win against the odds.

It became clear that while many of the issues could be remedied relatively easily, they would still need a competitive edge. The manager decided to produce the best job description possible and to ensure new vets would be provided with excellent procedure details and the necessary support to make their orientation stress-free.

Result: They hired two excellent new graduates.

Your business would benefit from a systems review if two or more of the following situations could apply:

* A staff member is away. You need to do something that person normally does but nobody else knows how.

* A very important issue was forgotten.

* You and others feel overworked. The thought of taking on extra staff is a worry. You don't have a fix on everything everyone does, or what the new person would do.

* If an Occupational Safety and Health incident occurred in the next 10 days, you would not survive their standard audit. You don't even have a list of hazards.

* Most of your real intellectual property is in the heads of staff. You are exposed to the risk of your key intelligence leaving when they do.

* You do not have job descriptions that make your business stand out when you try to attract employees.

Solutions for most of these issues are not found in accounting, client records, inventory management or payroll software.

You need a software solution that identifies and helps to manage what staff do, why they do it and how they do it consistently right.

In short, a quality management system. Doing the right things right, the first time and every time.

Staff who have well-organised responsibilities and work with good business systems have greater job satisfaction than those where disorder exists. The bottom line also improves with efficiency growth.

Well-documented businesses are also easier to sell because good systems survive personnel changes.

A business systems review is worth the investment whether you think your business would survive it or not. Simply invest 1 or 2 per cent of payroll to get a 20 to 50 per cent efficiency gain.

* Malcolm Dennis is the developer of Worklinx Software

* Freephone 0800 496-755

Worklinx

Email Malcolm Dennis