Stellar Outcomes

Process

There is an incredible construction company based in Tyler, Texas that wanted to demonstrate the benefits of process-driven work by building a house in two hours. By infusing proven processes into every dimension of the operation, they set a new world record in the home construction industry. Take a minute to watch the time-lapse video of this amazing feat: http://www.2HourHouse.com.

Clearly it took more than refined processes to achieve this sensational endeavor. Planning, preparation, leadership, and teamwork were critical components too. Having said that, the common thread of success behind these components was process.

By now you know that 50% of the companies started in America will never make it to the building stage. There are numerous reasons why this is the case, but there are two that stand out. First, many companies at this point lack the funding to finance the growth needed to remain competitive. Second, enterprises tend to fail at the building stage because they don’t install the processes it takes to go to scale. The ability to grow faster than your competitor will ensure another market advantage; using process-driven methods to do so, ensures growth without compromising value.

Literally, every operational element of the company must be evaluated and reconfigured so that best practice processes are applied to maximize the performance of a company. Some of the key methods for infusing process into your enterprise will be covered in another 7 to 7 Formulae article. This article is designed to bring light to how an enterprise benefits from doing so, and thus I hope to inspire you to pursue process-driven practices in your organization.

The 2-Hour House project revealed statistical proof that process delivers incredible results. According to a 2-Hour House industry representative, it usually takes a day to set the [house] forms, dig footings and set steel. The 2-Hour House team did it in 8 minutes. It usually takes half a day to rough-in the plumbing, but they did it in 7 minutes. It typically takes a day to pour and finish concrete, but this group did it in 40 minutes. Now, imagine your company applying the same process-driven principles. Process enables a company to grow and to expand capacity. The refined practices born from these processes empower an enterprise to thrive during the building stage rather than be overwhelmed by it.

Let’s review how process can elevate your company’s performance.

Measurability

As early as the eighth grade, I started competing in statewide theater competitions in numerous categories: poetry, dramatic interpretation, oratory, prose, etc. In my first competition, I lost in every category. I was devastated. I was also very competitive. What did I do wrong? I didn’t fully understand how my performance would be measured. So, I learned what the judges were evaluating (the piece I selected, my timing, how familiar I was with my selection, voice projection, and so on) and how they were going to measure what they evaluated during my performance. I never lost a competition again. How can you perform and repeat a task if you can’t measure it?

Measurability makes it possible to break down each step it takes to complete a task, to

simplify it, to understand it, to refine it, and teach it. This process then makes it possible to effectively train employees on how to execute and track the progress of these performance measures and ensures leaders in a company can explain when and how each step will be evaluated.

Consistency

Process drives consistency. If you take a task defined by measurable steps, then you have a roadmap, so to speak, that can be used to train employees on exactly how to fulfill each step within a task. Consistency doesn’t magically happen. It is a map defining what to do, how to do it, what order to do it in, where to get the resources to do it, the cost to do it, and how much time it should take to do it. This yields the consistent outcomes to build a company while also delivering uncompromised value and customer service.

There is a simple exercise that illustrates how much communication plays a role to yield consistent results. Seat two people in chairs, back-to-back. Give one of them a diagram of a design made of 12 dominoes and give the other person 12 dominoes. Give the person with the diagram two minutes to describe to the other person how to re-create the diagram without ever seeing it. People are often stunned at the poor results. The laid-out dominoes rarely resemble the original diagram at all. Think of this on a larger scale. To build successfully, directive maps must be developed and information on how to use these maps must be communicated consistently.

Efficiency

Process drives efficiency. Imagine life without Google Maps, Apple Maps or Waze. The beauty of these apps is that they automatically show a driver the most efficient route to take to get from where they are to where they want to be. Applying processes into your operational tasks essentially does the same thing.

Exercise: Pick one important task in your company. Make a list of each step it takes to complete that task. Now turn the steps into a workflow chart on the wall so your beginning is on the left and your destination (end of task) is on the right. If you are a solopreneur, do this with a trusted advisor and/or a service provider crucial to your business. Otherwise, bring in your staff for this exercise. Evaluate each task on the chart based on:

• the time it takes to do the task

• the net value the task contributes to the enterprise

• the chronic problems associated with the task

• the problems the task reduces or solves

• the time it takes to train someone to do the task

• the cost versus value of the task

• the materials it takes to do the task

• the source of these materials, and so on.

This workflow method is tedious but helps to identify the gaps in the efficiency process so they can be resolved before expanding your company.

Productivity

When you can measure what your team must do, teach them how to fulfill these tasks consistently. Apply process practices for efficiency and your entire operation works more productively.

To demonstrate how crucial process is to desired outcomes, I used to have corporate leaders engage in a jet building workshop. The executives were divided into four groups and instructed to build a plane out of Lego parts. All four groups were given the exact pieces they needed to build the same plane. Team A also received a black and white photo of what the plane should look like at the end of the exercise. Team B received the same photo but in color. Team C received the color photo and a section-by-section schematic of the plane. Team D received all the above plus a step-by-step manual on how to build the plane. Of course, Team D finished before the other teams. The members of Team D worked more slowly on the front end while they reviewed the manual and schematic but worked seamlessly thereafter because they all knew what they were supposed to do, how to do it and in what order.

Quality

Process ensures quality. There is a function on my laptop that allows me to dictate the quality of the document I’m going to save: good, better, best. Most printers have the same or similar option. Wouldn’t it be nice if all we had to do was choose option ‘best’ before started a project? Essentially that is what happens when process-based practices are incorporated into a company’s operations. You get ‘best’ almost every time while also saving time on each project. If quality is compromised for speed, it doesn’t matter if your company manufacturers widgets or develops websites faster than your competitors. You may be in the lead, but you won’t win the race. Incorporating clearly defined performance indicators for your team to measure the tasks they are undertaking fuels quality. The 2-Hour House project was no exception. The quality of the home they built was evaluated against the same industry inspection standards as any newly built home. Due to the well-orchestrated processes applied, they nailed the inspection.

Profitability

Process ensures profitability. One time when I was a kid, I was playing with my friend’s tiny, cash register that made a bell sound when you popped the cash drawer open. Even then I found it intriguing to play pretend business games, especially if I could put more [play] money in the register.

Most of us start a business for more than one reason: perhaps for altruistic aspirations that support a charity; to do something we are passionate about, to hear that cash register ring or simply to disentangle from the typical corporate career. Having said that, an enterprise must be profitable to be viable. Yet a recent re2.ai post noted only 65% of small businesses are currently profitable. A different small business statistic report indicated only about 30% of small businesses break even, while the other 30% of small businesses end up losing money consistently.

Process practices are one of the most powerful tools to apply to identify waste that erodes profits as well as illuminate hidden opportunities to improve profits. Review your pricing, profit margins, cash reserves, cash flow, costs, changes in the market (inflation), competitors, market demand and so on, systematically to optimize profits.

In summation:

Building a business that can withstand the rigors of growth is always a challenge. However, with planning, leadership, teamwork and processes, your company will perform better and, maybe like the 2-Hour House project, even set new performance records.

Get help. Consider all your options for successfully integrating process into your company including process automation software, workflow management software, consulting with process specialists, and rewarding staff who present ideas to improve processes in your enterprise. Infusing process practices into your operations produces potent building components: measurability, consistency, efficiency, productivity, quality and profitability. With these power hitters in place, a CEO can pursue a growth trajectory that will yield stellar outcomes.