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process-improvement-checklistIt’s already nearing the end of 2016. Crazy how fast time flies! For many people, this time is the busiest, filled with corporate events, family gatherings, holiday shopping, vacations and more. For many businesses, especially in the retail industry, it’s also one of their busiest times of the year. However, there are those industries or companies where December is a quiet month, making it the perfect time to look ahead and plan for the upcoming year. It’s when executives can finally set aside a few hours or days to establish and finalize next year’s budgets, prioritize upcoming projects, assess employee performance and review goals and benchmarks for the following year. What our consultants always encourage is to also set some time aside to review business processes and determine which ones aren’t working well anymore. For example, are you noticing an increase in unhappy customers, an increase in manual data entry, duplicated work, an increase in costs, missed deadlines, frustrated, and unproductive employees…? If so, it’s definitely time to improve the processes that don’t work and are leading to these problems.

In today’s world, things can change in an instant. Therefore, your business processes may have been efficient 5 years ago (or even one year ago!), but today, they are considered inefficient or outdated due to new technology, new goals, industry or consumer changes, etc.

So what can you do about it?

We’ve compiled an End-of-Year Checklist for you so that you can overcome challenges and improve outdated processes for 2017;

  • Write down the main problems/challenges you’ve noticed this past year;
    • Where are costs going up? Where are most of the delays occurring? How come customers or suppliers are growing more unhappy? Why are deadlines constantly missed? Why are errors increasing? …
  • Analyze these processes. Focus on either one or many of these problem areas and make them your priority for 2017. A great way to really understand what’s going on is to speak directly with the employees who are affected by the processes and get their feedback on why things aren’t working so well anymore. Perhaps they have an idea on how to improve them. It’s critical that you and everyone involved understand exactly what these specific processes are meant to do before addressing the problems and redesigning the processes.
  • Restructure those inefficient processes; brainstorm with your team and jot down all the ideas to solve these problems. Many companies refer to a consultant during this step, to help them find possible risks and points of failure of each possible solution.
  • The next step involves securing the resources required to implement change (change = new processes or process alterations required to improve efficiency & solve current challenges/issues). Do you need to hire someone new? Do you need to implement new software applications or outsource an IT provider for their services? Whatever it may be, now’s the time to set the budget (make sure it’s a realistic budget!).

For example, let’s say you realized that costs rose with the increase in incoming purchase orders in 2016. Perhaps this was due to hiring more sales reps to input all of these orders into the management system. Now you have more salaries, more manual data entry, and in turn more errors (human errors are likely to occur with data entry). With more errors in customer orders, there are more unsatisfied customers. What is a possible solution to this problem? Reduce the manual data entry or human intervention when it comes to incoming purchase orders through the use of an automated and integrated Electronic Data Interchange (EDI) service. With EDI, incoming Purchase Orders (POs) can be integrated directly into your management system. No human intervention required! This then reduces errors, plus improves the speed in which orders are processed and delivered to customers. A new budget will then be required for 2017 for an EDI integration project.

Going through the above checklist before the New Year will allow you to see real improvements next year. Now’s the time to ensure that your processes are effective and streamlined, your employees are productive, happy and properly trained, customers are satisfied and the technologies used are up-to-date, simple and a good fit for your business. We find too many businesses with complex software solutions, at which point their executives then wonder why their processes are so complex. By 2017, companies will look to have more affordable, flexible and simple solutions in order to have more agility for change. Set your plan and realistic budgets in order to benefit from efficient, streamlined processes.

Back in September, we published an article called “False Advertisement: The Truth about ERP Implementations” listing the false statements about ERP implementation projects that business executives were told by others or simply just assumed. The last false statement listed in the article was the following: “You should always customize the new ERP system to your current business processes”.

We see this with Small and Medium business owners far too often, which is why today’s article will go on to explain why changing your newly upgraded ERP system to fit with your old business processes may not ALWAYS be the best way to go. Read more

Be Prepared for Company GrowthIt’s always difficult to know what your business needs in terms of IT software without having seen or tested other systems. On top of this, we are all creatures of habit; once we get used to working a certain way, we do not question it, as it becomes second nature. However, this can be detrimental to a business. Only once a company begins to experience growth, expansion or a rapid sales increase, do they realize there is too much inefficiency that can prevent them from growing. More often than not, it is those companies that have not upgraded or changed their legacy system in years, or have no system at all, that will be affected the most. Read more

danger-41393_640Many small businesses rely heavily on Excel spreadsheets and Word documents to run their daily business operations. I cannot stress enough how this may work fine when the company is just starting out, as Microsoft Office programs are powerful tools, within a company’s budget and are well known amongst employees. However, in the long run, these programs can be quite dangerous to the survival or growth of the company. Read more

This post was updated to reflect current trends and information.

To maintain a strong position in a highly competitive market, SMEs need tools to ensure the optimum improvement of their business processes. As such, small and medium-sized manufacturing and distribution enterprises are no exception.

Managers nowadays are too busy with the requirements of their daily managerial duties that they don’t take the time to question the effectiveness of their business processes. This, in turn, prevents these managers to come up with better alternatives that can enhance productivity and performance, and miss out on an opportunity to achieve a real improvement in business processes.

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