“You can’t manage what you can’t measure” – W.Edwards Deming
If you are new or even a veteran in business, you may have come across this quote. This quote by W. Edwards Deming, a statistician and quality-control expert, reminds us that we need to look into processes, procedures and standards of the business to make sound business decisions. Audits are a measure of how those processes, procedures and standards are being maintained. There is check and balance through the audit process. Through the audit process, a decision makes like you, can measure and consequently, manage your business more effectively.
Entrepreneurs learn through the process of their daily operations. Basic processes, standards and procedures are created before a business begins and gets adjusted over time when the need arises. This approach however is very reactive. You want your business to be proactive and progressive with an audit system in place.
There are many benefits as to why you should start auditing your business now and here are the following:
- Through auditing, you are able to DOCUMENT the business process, procedures and standards. Documenting these factors are vital for staff development and onboarding programs, as well as for managing Human resource programs like tracking Performance standards.
- Having formalised processes and procedures for your business can SAVE TIME AND MONEY by increasing productivity and efficiency. Cutting down on haphazard actions allows your team to can get more done in less time, and allows you to scale the business at a faster pace.
- By creating standards and policies for your business, you SET BENCHMARKS and triggers to steer your business in the right direction. Processes and procedures can also improve the consistency of product and service delivery by your staff.
- Through audits, every member of the business is held to a STANDARD and PROPER COMPLIANCE. In order to do this, an audit plan that is properly designed is needed to be implemented across the company.
Auditing can sometimes be viewed as a painful process and an additional step that does not add value. However, being able to track progress is important to maintaining and improving standards. Automating of an audit program to take away the hassle of collating audit outcomes is the key that can save a lot of redundancy.
It’s important to create processes, procedures, standards and audits for your key business activities. Depending on your individual business, these may include:
- customer service (including a customer service program and after-sales service)
- Food safety practices
- Onboarding of new business partners
- Financial audits
- sales practices and sales policies
- staff training and performance reviews
- management responsibilities
- record keeping, privacy laws, reporting and money management
Contact firstname.lastname@example.org if you need help creating effective procedures, processes, standards and audits for your business.