Who's Responsible For That Again?
Nov 05, 2018
Most companies have a basic procedure for all of the tasks that have to be completed to manage inventory, fill sales orders and record all of the necessary transactions in whatever system the company uses.
As a company grows, more people are involved in the process. Customer demands can lead to more complex requirements which weren’t covered in the original procedure. Most of the time, this happens organically. Steps are added ad hoc to meet requirements and the procedure is never updated.
Over time, employees can lose track of who is responsible for each step in the procedure. New employees join the team and there is no current reference for them to use as they try to learn how to do their jobs. Even worse, they might receive conflicting instructions depending on who they ask for help. Sometimes, there are only one or two employees who know the entire process the way it has developed. If they are out sick, who makes sure everything is done correctly?
Poorly documented procedures can lead to many challenges such as:
- Delayed shipments and potentially lost orders
- Delayed payment due to paperwork errors
- Poorly managed inventory
- Employee turnover
Simple things can be done to alleviate poorly documented procedures:
- Someone should be responsible for reviewing the procedures on a quarterly basis. If your company is larger, there could be several people based on departments.
- The procedure needs to be specific as to who handles each step, the timing involved and any kind of notifications or confirmations that need to be passed on to the next person in line.
- If there is a breakdown in the process, the supervisor and the person responsible for the procedure (could be the same person) need to be notified immediately so the situation can be addressed.
- When a change to the procedure is warranted, the procedure should be updated as quickly as possible. Copies of the revised procedure need to be distributed to the employees affected. The changes need to be discussed to make sure everyone understands them.
- Monitor the changes for a period of time to make sure the procedure is being followed and the changes have actually addressed the problem adequately.
Procedures are necessary to provide consistency, accuracy and training across your company. They don’t have to be scary or time consuming to write and keep updated. A little bit of time up front can save a bunch of headaches later!
I’ll be writing more about procedures in upcoming posts. Check back to read the rest of the series!
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