Hi. I promised last time that I would fill in some of the details on the process to follow when the yoghurt hits the fan. I will do that the next, but realized that it makes more sense to first talk about you should be doing long before things go off the rails.
1) Ensure that your company has processes in place for all regularly-performed jobs…
and that people are trained in the right way to do things. There must also be checks and balances in place to ensure that the correct process is followed... and there need to be consequences for not following the established routines or employees tend to get lazy and develop their own short cuts.
This may sound obvious, but it’s surprising just how many companies fall short in this area.
Most manufacturing and processing companies, especially those dealing with food and hazardous material, are pretty vigilant, but other types of companies are often too lax. Or think that there is no real need.
Even in a marketing communications company we need to have processes. For instance…
• A contact report must be written for every client contact made. That way nothing gets forgotten, agency and client are clear about any changes in direction given, etc.
• Recruiting specs for any type of research must be vetted against the research objectives and by the people who will be using the research findings – and signed off on by the client. You also need to double-check the profiles of the people recruited prior to starting the work to make sure that your specs were followed accurately.
• You never go to press without getting client sign-off on a “size as” printer’s proof.
• You must always include seed names in your mail files of people living in the target area – and these names must be given to the data processing firm for insertion, not to the lettershop company.
• etc.
Seemingly little things, but I’ve learned that things only go wrong “the one time” we don’t follow a set procedure.
We conducted research with +100 other firms in multiple industries to confirm what we suspected – that no company can operate without established ways of doing things. We spoke with all kinds of companies from bakeries to hairdressing salons to automotive repair shops to data processing firms to research labs to architect firms to convenience stores to... well, let’s just say there was a good cross-section of companies.
Before the investigation we asked a panel of business students which of the targetted firms needed to have processes (other than financial) in place to success. They believed that less than half of the firms needed to be process-driven. They were wrong.
Here’s what we found. Companies fell into one of two categories: 1) Process-oriented companies that function relatively smoothly and 2) Ones that fly by the seat of their pants and spend as much time putting out fires as they do performing revenue generating tasks.
The ones with processes in place
Each and every company that fell into this category – without exception – echoed the sentiment expressed by this one entrepreneur from a consulting firm:
“We have rules for how things should be done. Whenever we take a shortcut and skip a step, that laziness usually comes back to bite us in the butt.”
A caterer said: “Whenever we deviate from our established processes, it’s only dumb luck that keeps the wheel from coming off the bus.”
In many cases, the establishing of set procedures followed a series of small setbacks – or was implemented after a really major screw-up that threatened the very survival of the business.
Interestingly, each of these firms was profitable – and reported increases in both revenue and profitability of anywhere from 10% to 30% in the first year in which process were introduced and actually followed.
The ones without set procedures
Each of the companies that operated without established practices for everyday tasks had the following in common:
• They spent anywhere from 25% – 50% of their work week solving problems - most of which were a result of employee error.
• Their profitability was lower than the average for similar-sized firms in their industry – sometimes as much as 60% lower.
• The business did not have a written business plan and was growing like an unpruned bush – out in every direction but up.
2) Create contingency plans
Gather people from all areas of the company. Ask them to think about all the things that could possibly go wrong in their work day. Encourage employees to submit ideas for solving the identified problems as well as for improving safety and productivity in their work area.
From this input, create a written game plan of the process to follow when the yoghurt starts dripping on the proverbial fan.
Make sure that there are at least two copies of this binder – and if the operation is a large one, that there are a couple of copies in each key functional area of the company. Employees should all know about the binder and be taught that when things go wrong they need to...
• Call 911 (in cases of physical injury, fire, etc.)
• Alert their supervisor
• Get the binder and follow the recommended steps as appropriate
3) Cultivate a Culture of Trust and Open Communication
This is just good business practice – but can prove invaluable in times of company crisis.
If there is already good dialogue between senior executives and the rank and file, it makes it easier to communicate with employees if there is a serious problem.
When Maple Leaf Foods experienced its listeria outbreak, CEO and President Michael H. McCain was able to inform his employees about the steps being taken through an internal communication tool. Prior to the incident he updated employees weekly through a personal e-mail message. Employees had come to know and trust him and, as a result, were reassured by the postings during the crisis.
More importantly, in this kind of environment employees will be quick to alert colleague and/or supervisors to potential problems, rather than covering things up because of fear of reprisal.
4) Court the Press
Companies that maintain cordial relations with members of the press are more apt to be portrayed in a more sympathetic light when things go wrong – provided they do the right things to address the problem, of course.
And as for the details on the process to follow (see below), I really will fill in the details with my next post. In the meantime, if you would like clarification on anything, please feel free to contact me: jmc@theQgroup.com.
Until then, remember to have fun and be prepared to "go out on a limb because that is where the fruit is."
Jane-Michele Clark
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