Standard Operating Procedures - Russell Colbourne

​Russell Colbourne - "Your Money Machine"

Introduction

Your business is Your Money Machine.  In this Show – I’ll take you under the hood of your enterprise and show you how to fine tune your business.  Get ready for lift off as we add rocket fuel to your profitability!  This show is focused on businesses that have launched and are preparing for exponential growth

Standard Operating Procedures are the results of all the hard work we’ve been discussing over the past few weeks. Once you’ve set up your reporting rhythms and are confident of being able to measure how you’re doing on a regular basis, you can review your costs with Activity  Based Costing; measure the value you are adding to the processes in your business through Value Stream Mapping; and eliminate the waste in your business through a focus on economy, efficiency and effectiveness.  Then you can set up your standard operating procedures.

This final step will be the point at which you can step back from working in the business and really start to work on the business.  This is the point when you will be ready for exponential growth.
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Show Objectives - The Why
Creating more structure in your business activities can dramatically improve productivity and reduce costs. Not every organization will benefit from this kind of standardization, and it depends on you, the business owner or manager, to determine if there are work processes that can be duplicated every day within your company and if it's worth teaching those processes to employees through SOPs
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What needs to be accomplished right now is setting the business up with the leanest, highest quality, best margin products and services to aggressively sell.

Key Issues - Owner Perspective:

1. What were our savings in labor, materials, and time.
2. How to use the savings to improve our competitive advantage.

What You Need to Know - The What
To ensure that production operations are performed consistently to maintain quality control of processes and products. Consumers, from individuals to companies, want products and services of consistent quality and specifications. SOPs specify job steps that help standardize products and services and, therefore, quality.

What You Need to Do​​ - The How
Step 1: Begin with the end in mind
Step 2: Choose a format
Step 3: Ask for input
Step 4: Define the scope
Step 5: Identify your audience
Step 6: Write the SOP
Step 7: Review, test, edit, repeat

Shows

• Previous: Episode F3.004 Mission Control Value Mapping
• Next: EPISODE F3.006 Fine Tuning your Products and Services Profitability

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F3.05.3AA