procedure

mistakes

Are You a Mistakes Repeat Offender?

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Everyone makes mistakes – we are human after all.  But, are you a repeat offender?  Do you even recognize you’ve made a mistake?  Are you constantly doing damage control?

Deep breath – you aren’t alone.

Here are some tips and guidelines to help you reduce the number of mistakes you are making, what to do when you make them, and how to prevent them from happing again.

  1. OWN YOUR MISTAKES. The worst thing you can do after making a mistake is not owning it. No one is perfect, people inherently know that although let’s be honest we often expect it. So when you make a mistake don’t try to cover it up, acknowledge it, apologize for it, and skip the part where you make excuses or try to blame it on someone else. When you aren’t an “oops owner” it shows you can’t take accountability for your actions, and it just makes things awkward for everyone involved. Be a LEADER and OWN it!
  2. FIND OUT THE ROOT CAUSE. If you work in manufacturing, root cause analysis is a term you probably hear all the time, but it can apply to anyone and any industry. Root cause analysis is finding out WHY the mistake happened in the first place so you can prevent it from happening again. Was it caused by operator/human error, a bad process or procedure, poor communication, etc.? If you don’t know what caused the mistake, then how can you make sure it won’t happen again?
  3. CREATE NEW POLICIES OR PROCEDURES. If you’ve determined that the error is due to poor or incomplete policies or procedures, then it’s time to do some updating. Whether you need to create a new process or update the ones you already have in place, it’s important to document any change that needs to be made.
  4. You’d be surprised how many times there are mistakes or issues because of poor communication. Once you’ve handled the above 3 steps, it’s important to communicate to everyone what the issue was and how it’s going to be fixed. It shows your employees, board members, clients, etc. that you care about preventing the same mistakes from happening again.

If you make a mistake, don’t freak out. Take a deep breath and figure out if you need to take any immediate steps to fix any urgent issues or fall out. Always make sure you acknowledge you made a mistake and that you will do your best to fix it. If it requires getting others involved, don’t be embarrassed – they are human too – and can often have an outsider’s perspective on why it happened or how to avoid it happening again!

The end goal – one and done and no repeat offenders.

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Three P's

The Three P’s – Policy, Process, Procedure

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The Three P’s are kind of a big deal here at Red Barn. However, many people don’t quite understand what the difference is between a Policy, a Process, and a Procedure. In fact, many people use the terms interchangeably, and often incorrectly. Regardless of how you use them, it’s important to know that they are a vital part of your Operations. How can you hold yourself and your team accountable if you don’t have everything outlined, documented, and available?

Everything we do at work is governed by the Three P’s. Having unclear, undefined P’s is not so bad if you are a solopreneur, but if you have employees, vendors or contractors, and clients – you need clearly defined and documented P’s for everyone to follow.

So what do the Three P’s stand for?

The policy is the Rules and Standards that your company adheres to.

The process is the What, Who, and When.

The procedure is How and Where.

The Policy

Policies are at the top level of the Operational System. They state the principles by which your business will operate. You should aim to have a written Policy for every one of your business operations.

The Policy defines the RULES within which everyone involved in the activity will operate. It can also define minimum STANDARDS to be delivered. An example of a policy may be that the time clock is required to be used to document working hours – no handwritten time slips will be accepted.

The Process

The Process sits one level down from the Policy. It outlines how the rules and standards set by the Policy will be achieved by listing the tasks to be done, who does them, and when they do them.

The Process is the WHAT, WHO, and WHEN. An example of this would be that all hourly employees (who) are required to use the time clock to document their working hours (what) by punching in and out at the start and end of their shift and lunch breaks (when). Managers (who) are responsible for checking the timeclock log (what) on a daily basis (when) for missed punches.

This isn’t where all the details live. It’s simply just the tasks involved in the process. The process should make sure it covers all the rules and standards defined by the Policy. Not every Process needs to have a Procedure. The Procedure is where the details live, so if you need more information outlined than listed in the Process, spend a little more time documenting the Procedure for each task.

The Procedure

Procedures support the Process by defining exactly how you want each task to be executed.  It lists the step by steps tasks to complete the process. It captures the HOW the task is done and WHERE to find the resources to do the task.

The level of detail to put into your Procedures depends on your level of comfort, who will be doing the task, and any requirements based on your company’s industry and certifications – like manufacturing and ISO certifications require very detailed procedures.

In our example of using the time clock, for the hourly employees, we would detail how to use the timeclock – do they swipe a card or enter a code, what buttons do they need to push to get their punches to register, what is the process if they miss a punch, are their rules on how early or late they can punch in without discipline, etc. You must also outline the tasks for the Managers – how do they check the log, what do they do if an employee is too early or late, how do they record a missed punch, etc. Who do they contact if there are issues with the timeclock?

A Procedure addresses a single task performed by a single person, so it should be relatively succinct, but complete enough that the person doing the task does not need to ask questions.

You will note that the Procedure is strictly the set of steps, and where to find the resources needed to complete the task. There’s no When and there’s no Who because that information is in the Process. The Procedure is designed to be picked up and carried out by anyone assigned to the task.

Spending time documenting your Three P’s will result in improved efficiency, less confusion, and mistakes, and allow you to delegate tasks or onboard new employees faster. Overall, better operations mean happier customers.

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10 reasons businesses fail

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I’ve owned a few businesses in my day. Some have failed, some have been (and are) successful.

The failing part sucks – no doubt about it. You never enter a business thinking it’s going to not be there in a year or two – kind of like a marriage.  But it happens.

Here’s what I’ve learned from my own failed ventures and from the myriad of business owners I’ve worked with over the years.

  1. Business Partners. When they work it’s beautiful. When they don’t, it can be an ugly divorce in the making.  Just like a marriage, you need a partner who has the same core values, the same vision, yet you need to complement each other.  There must be trust, transparency, and all partners need to be on the same page when it comes to running the business.  Have a partnership agreement that details who is doing what and how everyone is getting compensated.  Trust me on this one.  Many businesses fail because the partnerships fail.
  2. Capital. You need money to survive.  Cash is still King.  If you are thinking of going out on your own, you need to have cash in the bank for at least a year and/or some VC money to infuse into the business.  Without capital, it’s hard to grow.
  3. 3 P’s. Policies, Process & Procedures.  You can’t wing it.  Have a process. Adjust as needed.
  4. Cabinet. Lawyer, Accountant, Tax Advisor & Insurance Broker.  Don’t ever skimp on these – Ever.  Don’t think DIY is a smart idea – it never is.
  5. Clear WHY. You have to be crystal clear on your vision – your WHY. What are you bringing to the market? Why should someone buy from you?  What is your unique value prop?
  6. It has to be a viable business. Not all great ideas are viable businesses. Do the market research and test.
  7. The need for perfection. Go to market. It will never be perfect.  Do 1-6 – that’s just smart business, but go to market even if things aren’t perfect.  Your website doesn’t have to be the grand vision you have – it can be 1 page.  You don’t need a staff of 100 – start with 1, etc.
  8. Hire the RIGHT people. They need to fit into your culture and see your vision. Resumes and skills are second to their core values.
  9. You need to change with the market.  Innovate or die.
  10. Ethical. Now you’ll say there are a ton of unethical business owners who are making millions.  True, but they won’t survive the long haul.  Besides, do you really want to be that person?  Do the right thing.  Karma is real.

My first business failed miserably and cost me dearly.  The reason was #1, #4, and #10 (on my partners’ end).  It was a mess.   If you are thinking about heading out on your own. Call me first – I can save you a ton of headaches!

Cheers to us Entrepreneurs!

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