It’s Time To Handle Your Business (Policies And Procedures)
No, seriously! But don't worry, you are not alone. "According to Gartner's BPM (Business Process Management) maturity model assessment, 75 percent of organizations are still in the midst of standardizing and automating processes". So, most have not mastered this (aside from the pandemic) but let's assume that the other 25 percent have found value in the work it took to achieve this. Imagine how much more competitive your business would be in the market if you lead the effort to do the same. When it comes to small business, it is highly likely that operational policies and procedures have not been fully executed. Depending the nature of the business, there is a possibility that they have not even been initiated. Why?Well, some common reason are:
lack of resources
perception of complexity
informal work culture
size and scope
reactive approach
LACK OF RESOURCES
As we know, a fair amount of small businesses suffer under the weight of not having enough of what they desperately need to adequately compete. Unfortunately, this gives larger, more established firms an incredible amount of leverage. But after consulting more than 500 small businesses and being in business for myself for the third time, I do not believe it is impossible to overcome the resource obstacle. It starts in the mind. Set a goal and strategize to find more resources because there are plenty out there. In the meantime, you can even explore how to tackle policies and procedures on your own. And if DIY is not your thing, as soon as you have enough money to figure out another solution for your lack of structure, get it out of the way.
PERCEPTION OF COMPLEXITY
I can't imagine what comes to mind when some people hear the phrase policies and procedures. Some probably find the idea boring and I don't blame them. It's certainly not the sexy side of business, especially when you don't enjoy writing or feel overwhelmed. However, if that's your reaction, I encourage you to do some research and figure out exactly what doing this for your organization will require. That's really the first step to minimizing the intimidation factor. It's only scary because you don't know the details. Of course, that doesn't mean you have to do it on your own. Just know it's not quite as complicated as it may seem.
INFORMAL WORK CULTURE
There's something about a work environment that does not reflect a traditionally conservative corporate one. It's the best of both worlds: professional but relaxed. There's nothing wrong with this. However, there is something wrong when the relaxed nature of the environment causes a team to bypass professional responsibilities. It's cool that one person on the team is especially good at doing that one thing but what happens when they leave abruptly (and perhaps not by their own choosing)? Does anyone else have access to their secret? If the answer is no, that team is in extremely dangerous territory. Theoretically, anyone should be able to run your business from your written (or recorded) policies and procedures. This is where half of your businesses value comes from (the other half is the book of business aka customers/clients). Try looking at your business through this perspective. Then, figure out how to make the necessary changes.
SIZE AND SCOPE
Creating companywide policies and procedures is not a quick task. It takes time because it covers every aspect of the business and that can be quite a lot depending on the volume and detail of the entire operation. There are policies for payments, returns/refunds, employees, accounting, customer service, and legal compliance, just to name a few. The list is just as lengthy for procedures. It is certainly a great amount of information to capture but it helps everyone to know what to do (and what not to do), protects from liability and risk and even keeps people physically safe in some cases. The point is that the idea of your business not having these things established is equivalent to it being stark naked, without protections that can jeopardize its existence or operation. Yes, it's scary. But it's also necessary and better to have than not to have. And the sooner you start the process, the sooner it will be finished.
REACTIVE APPROACH
This basically boils down to not having time. I get that. Most owners are stretched extremely thin and also have familial, academic or other work obligations going on all at once. It's a lot so it's understandable that many owners just don't prioritize something so broad and time-consuming as creating policies and procedures. The best time is before you launch but at that point you aren't always clear about what the policies and procedures should be without getting your feet wet. So, now you're neck deep and it's the last thing on your mind. That's where you may have to delegate so that you can get the relief that comes with knowing you checked something off your list. But you won't have that much time to relax because there's never a dull moment with small business ownership!
If you feel called out, it's okay. I'm not here to judge you. I'm here to encourage you to take the steps to go ahead and handle your business. I'm also here to help. Join the Intentional Professionals email list so that you do not miss a special offer coming before next week's blog.
Sincerely,
-M