How to turn your team into a perpetually improving machine

SPECIAL How To Turn Your Team Into A
ACTION Perpetually-Improving Machine
REPORT
Research has found that as much as 60% of the work done in the average
business is spent doing:

A complimentary report
provided by an
the right thing wrong
independent BBG… the wrong thing right
correcting the wrong thing to make it right
Business Development supervising staff to make sure they are doing the right thing, the
Specialist right way, at the right time
Our purpose: Can you relate to this?
To provide practical
business information And, all the time, mere survival in today’s hectic commercial atmosphere
that works… requires each business to be able to do things faster, cheaper, better. Put
Guaranteed! simply, we must be able to do more with less.
In particular how to:
Business If you can accept that your business or division is primarily a “money-making
Increase Sales
Publications machine,” then, as managers, our job is look at how we can improve the
Reduce CostsPty Ltd
Australia operations of that machine… and productivity is at the cornerstone of the
Improve Productivity
improvement process.
Better Business
Group Ltd But, the exercise is not one for management alone. All staff members have a
vested interest in making sure that the “money-making machine" which
Serving Australian and
New Zealand Business.
presently employs them remains competitive in today’s pressure-cooker
business environment.
BBG Australia
Suite 7, Royal Arcade This report is for management and staff. It involves both in conducting a
Cnr Barolin & Bourbong critical review of all the processes which are presently carried out within the
St, Bundaberg, Qld 4670 business.
Phone+61 412 667 559
Fax +617 3036 6174
Email:
But, first a story from the history vaults…
bbgau@betterbusinessgroup.biz

BBG New Zealand
In the early 1940s, Henry Ford was presenting an aged employee with his gold
watch for many, many years of loyal service. Just before the function, old
1329 Akatarawa Road Henry spoke to the soon-to-be-retired staff member, who took the opportunity
Upper Hutt 5372.
New Zealand to tell Henry about some of the product improvements he had invented
Phone: +64 4 5266880 himself. Henry was shocked to his socks, because the suggestions were
Fax: +64 4 5264024 profound - indeed, brilliant. “Why haven’t you mentioned these before now?”
Email: asked Henry. And the now famous reply – “Because nobody ever asked me for
bbgnz@betterbusinessgroup.biz
my opinion.”
Presented By:
If you get nothing else from this report, please get into the habit of asking all
staff for their opinions on how they go about their own job functions, because
they know their own job functions much better than you, and they have very
Page 1 of 6 Copyright © Fred Steensma

How To Turn Your Team Into A Perpetually Improving Machine
definite opinions on how they can do it better, faster, cheaper... maybe even not doing it at all.

If you want to turn your business into a perpetually improving machine, then you will need to
constantly review each process that occurs in your business... regularly.

What is a “process”? The dictionary defines a “process” as a series
Well… of actions directed to some end (or goal).

With very few exceptions, the goal of your business is to make a PROFIT.
Thus, every process performed in your business must be performed with a view to maximising
profits, and this can be achieved as follows:

Getting better results from the process itself.
Example: Achieving more sales from each direct mail campaign… increasing the average sales
value achieved from each call made by salespeople.

Performing the process faster.
Example: Using a bobcat for two hours to dig a hole which usually takes three men all day to
complete.

Using less resources in the process itself.
Example: Using less cloth in each made-up suit.

Dumping wasteful and unnecessary processes.
Example: Dropping the preparation of monthly reports that nobody looks at.

Delegating the process to others.
Example: Using junior staff to perform process functions whereby the hourly rate of pay is lower
and the time taken to complete the process is no more than for the more expensive adult.

For the purpose of this exercise, we will define "process" as:

The functions and actions that go into HOW you do your business in order to arrive
at a profit. The better you perform the processes, the better the profit.

Thus, every function performed at your place of business can be regarded as a process.

Please understand that getting the mail from the post office is a process. So, too, is serving the
morning and afternoon coffee. The way the stationery is ordered is a process, as is the way the
office, shop or factory is opened and closed each working day. The way paper is filed is a
process, as is the way the stock is stored.

On this basis, you perform many, many processes each day, and each one needs to be identified
and studied as to whether it can be done more simply and/or more efficiently.

Page 2 of 6 Better Business Group Ltd Copyright © Fred Steensma
Australia- Suite 7, Royal Arcade Cnr Barolin & Bourbong St, Bundaberg, Qld 4670 - +61 412-667 559– Email: bbgau@betterbusinessgroup.biz
New Zealand- 1329 Akatarawa Rd, Upper Hutt 5372, NZ - +64 4 5266 880 - Email: bbgnz@betterbusinessgroup.biz

The easiest way for you to conduct an “audit” on the way you do business is to get each staff
member to review their individual job processes. They can do this by using the attached work-
sheet entitled “My Job Processes.” Please feel free to use this form in your business.

Once completed, it will give you a “helicopter” view of every job process that is performed at
your place of business.

The Review Process
In completing the “My Job Processes” work-sheet, you will need to consider many issues. From
experience, the following questions will assist you in your analysis. These are the kinds of
questions you need to consider:

Why should I change this? Why shouldn’t I change this?
How do my strongest competitors do it? What are my competitors doing?
What am I trying to achieve? What are the alternatives?
Is this the right time and method? Can I make or perform this process
faster?
Can I make or perform this process better? Can I make or perform this process
cheaper?
Am I reinventing the wheel, or has this been done before?

And a most important question: “Why am I doing this process?”

A Detailed Explanation Of The Worksheet:
Column Title Description and Explanation
Item Number Use this column to attach a numbering system to each process that you perform.
Start with 1 and work on from there.
Job Process Record in this column a brief description of every function performed by you
during the course of your business day - from opening the office/factory/shop in
the morning to closing it at night. Remember… everything you do during the
course of the day is a function or a process.
When Performed If applicable, record in this column the time and/or the day when you normally
People Involved perform this function. If other staff are involved, record their name/s as well.
Tick if you think This is where the rubber hits the road.
this process can be In this column, you will give your assessment as to whether the process can be
done… done better, faster, cheaper, using less material, etc. Perhaps the process does
not need to be done at all, or is capable of being delegated to somebody else.
This function is done by simply ticking the appropriate box. Remember our
goal is to eliminate or alter at least five processes.
Details of possible List in this column all ideas and action steps you intend to pursue to make
improvements to the the goal achievable. You may care to note the review process as detailed
process… below.


At the conclusion of this review, you might find the second worksheet very handy. It’s titled
“Process Review” and it will allow you to be more specific in documenting process changes,
including allocation of responsibilities to ensure that the changes are made.

It is, if you will, an action plan for permanent, profitable improvements. Go to it... and all the
best.


4

PROCESS REVIEW

Date :.................... Prepared by:............................ Reviewed by:.................... Identification No:....................

Process (Give full description)

Intended alterations to the process

Advantages to the proposed alterations to this process

Who is responsible? Other staff to assist

Priority : Urgent High Medium Low When time permits

Action Steps
Matter Specific action steps for achieving Who? When? Date
objective Completed



MY JOB PROCESSES

STAFF MEMBER …………………………………………………… Date of Review:..............................................………….

Tick if you believe this process can be
done

Delegate To
Resources
Using less

Required
Item No.

When Performed Details of possible improvements to

Cheaper
Faster
Better

Not
People Involved the process


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