Ask Andi: We need a business backup plan. My head of operations had a less than positive annual physical. Nothing life-threatening, but the warning about physical health was a wake up call for all of us. Things should be in place, in case something happens to her, or anyone else in operations. Our clients depend on us to deliver as promised. It’s important. What do you suggest?
Thoughts of the day: A business backup plan is essential. Organize by laying out the chain of command. Determine who does what. Document processes and standards. Train employees. Practice by removing key players.
Have a business backup plan
First ask: Is there a detailed organization chart for operations? Put down on paper who reports to whom. If responsibilities overlap, show every reporting line, and why people go to one person rather than another.
Map out the functions in operations. Start from the time a customer places an order, until the order is out the door. Include how to satisfy customers. Put each activity in a box with arrows showing the progress from one box to the next. Indicate who typically deals with the tasks described in each box.
Define individual jobs. Which person does what? How do people hand off tasks that are described on the operations map? Who is responsible for quality assurance? Customer communication? Who do people go to if there’s a problem?
Define the standards. What is an acceptable error rate? How long should it take to complete specific processes, and tasks within processes. What’s the minimum and maximum order range, for materials that are kept in inventory?
Don’t put all eggs in one basket
Perfection is usually not worth the cost. Some degree of error is usually acceptable, as long as there’s also a recovery process laid out. Implement a business backup plan whenever errors happen. If things need correction, show the return route they would take through the Operations Map.
Consider doing time and motion studies, including pictures. Document what people do, to produce the goods or services that the company delivers. How long should each step in the process take to complete? How long is too long?
Write out the answers: Who purchases materials? Who are the preferred vendors? What price list, or price history, gets referenced when placing an order? What materials have negotiated deals?
Define how inventory gets counted, and who’s responsible, where inventory is kept, who has access to it, and how it’s organized. Take pictures of inventory storage and put them into a book. Make it easier for the next person to visualize what inventory should look like.
Document key contacts outside the company. Some vendors and customers are contacted regularly. Make sure there’s a list of who to go to, and for what purpose, including phone, email, and postal addresses. Remember to include auxiliary vendors, such as banks, trucking firms, and IT support.
Establish a contingency plan
Once you have a business backup plan mapped out and documented, it’s time for training. Make sure every person, up through the top dog, has a backup. Have the backup shadow the person they’re replacing. Then have the primary person take a day off and leave their job in the hands of their replacement.
Regular meetings of all players involved in operations can speed communication and reduce gaps if someone is suddenly called away. Meet weekly to discuss overall operations. Meet daily to plan how the day will go, to recap the previous day and to address problems and other open items. These meetings are where you can share information, brainstorm, and catch small problems before they become big ones.
Consider a weekly quality meeting, and another to discuss customer relations. The meetings don’t have to be lengthy, but holding them regularly is important. Include more people from operations, rather than less, and consider inviting people from other areas of the company as well.
Build an operations manual, documenting everything that happens. Make it a bible. Train people to use and update the manual, as they learn tasks and take over responsibilities.
