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February 2009 Edition
Making Your Life as a Contractor
"Less Stressful & More Successful"
What happens to a string of Christmas tree lights when one bulb goes out?

They all go out, don’t they?

Your business systems are much like a string of Christmas tree lights - the success of the entire string is dependent upon each individual bulb. If one bulb is loose, burned out, corroded, or installed incorrectly, the system won’t work. When you lose one bulb, you lose the entire string. Likewise, your results are dependent upon following a complete system.

Every system that you create, every task that you perform, must have a beginning and an end that completes the path - or you risk doing things incorrectly.

Have you ever had a job sold but the right material wasn’t ordered?

Creating a Task List which details every task your company does will solve these issues. Your Task List will also help you to create your Organizational Chart and your Flow of Communication Chart. These items form the basis of your Operations Manual.

Do you someday hope to get out of doing every job yourself?

When I’m out on consultations, one of the very first things we do is define whose job it is to do what, and who supervises who. This is so we’re not micromanaging each other. The Organizational Chart allows us to identify where we are weak and where we are strong.

Do your Techs go to Accounts Payable with paycheck questions, or to the Service Manager?

Shouldn’t there be a clear path as to who they should be speaking to about paychecks - and everything else for that matter? Once you have an Organizational Chart, the next step is to create a Flow of Communication Chart, which details for employees who should speak with whom about what, in general.

Clarifying the proper flow of communication within your organization is fundamental to all of your processes and systems. Your reporting structures must be clearly defined in order for your team to operate as a highly functioning group of individual players.

You see, your team operates much like a series circuit.

Just like that string Christmas tree lights.

I’d love to come out to your shop and help you build a systematic approach to running your business. Check my web site for more information on my two-day Planning Power! and Operating Power! consultations.

Click The Link Below For Your...
FREE 1/2 HOUR CONSULTATION
Make Good Things Happen To Your Business — Call Al!

"“We were fortunate that Al saw us as a good fit for his Power programs. He helped us asses our priority projects, then we assembled the top five of those projects. After less than a year of working with Al, changes are being made that have helped us leap forward to a better run, better managed company - and on top of that, a profitable company!

What more needs to be said other than, ‘Thank You, Al’ for showing us the way and holding me accountable - as you said you would - to ‘Making It Happen’.”

Ed Turek, President Turek’s Plumbing Inc, Appleton, WI

 
Questions & Answers

Q. I followed your advice about creating an organizational chart. But I still find that the techs complain about mistakes in pay to the service manager instead of the accounts payable person. They come to me, the owner, to complain about the uniforms when they should go to the operations manager. The list goes on. It seems like they talk to whomever they feel like talking to.

A. People take the course of least resistance. Not because they’re bad, it’s just the way we’re all wired.

So, we talk to those we’re comfortable with instead of those we’re not comfortable with, even if they’re the person we need to speak with to resolve the problem at hand.

Since you’ve created the organizational chart already, you need to create one more chart. This chart is called the flow of communication chart. It’s created after the organizational chart and it briefly outlines who speaks to whom about what.

It works like this: Draw a circle in the middle of the page and surround it with a series of other circles so it kind of looks like a daisy.

The circle in the middle contains one specific job position on your organizational chart. The circles that are around it are the other key positions in the company that this person would interact with.

Except for the circle in the middle, each other circle has a very brief description of when the person in the middle would need to contact them and for what reason.

Example: Technician is in the middle. The A/P (accounts payable person) circle would say: Payroll, Vacation, Benefits.

Each page has another position from the organizational chart in the middle and the circles around change to whomever the position in the middle would need to interact with.

For more questions and answers with Al, visit www.myplumbingportal.com under “Ask the Experts.”

 
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