Today’s businesses are filled with processes: IT, accounting, manufacturing, supply chain, operations, security, etc. Department heads are responsible for documenting and managing the steps in their units, constantly striving to increase efficiency and productivity while decreasing inherent system waste.
If CFOs determine they’re unable to close the books in a timely manner due to lacking accurate data from the warehouse, the process of counting and reconciling inventory is analyzed and improved. When VPs of Supply Chain realize their work-in-process numbers are understated by 3-5% every quarter, they’ll spend time with the sourcing and assembly team to determine the factors causing the bottleneck, correcting each inefficient step along the way.
In both cases, a uniquely qualified team is in place, tasked with executing, monitoring and adjusting processes on a regular basis. From the Accounting Assistant and Project Manager to the Warehouse Manager and Controller, a clear understanding exists of the contributions made by each function, and their impact on the entire company. The leadership team carefully designs and documents the various components of their procedures, including the creation of an organizational chart that includes a designated support person who may also act as the liaison between departments, ensuring ongoing and effective communication across the company.
Any process that lacks these systematic actions, or includes ambiguous roles, is doomed to inefficiency and underperformance, rendering it nearly impossible to replicate.
Any process that lacks these systematic actions, or includes ambiguous roles, is doomed to inefficiency and underperformance, rendering it nearly impossible to replicate. It can’t be analyzed for deficiencies, nor can it be enhanced with new tools or methods. Moreover, it’s nearly impossible to hold anyone accountable if department heads lack the information to identify where the problems reside. It’s akin to “managing by gut.”