Management by Procedures
| by Chris Anderson |
Have you heard of Management by Objectives? It was first popularized by Peter Drucker in the 1950’s. This is basic goal setting, where you pick (or agree on with your employees) your objectives and then drive everyone to the result. Results are important, but so is keeping control of your organization. The problem with Management by Objectives is that we don’t want to become overly focused on the goals to the point where we begin to ignore the environment around us. What’s better than Management by Objectives?
How about Management by Walking Around? Management is a contact sport not an objective setting exercise. You have to get out into the field in order to see or “Check” what’s going on in your company (check is part of the Plan Do Check Act cycle of learning). Lean thinking managers naturally walk around to get ideas for new kaizen improvement events, to see the work being performed, and to understand if the right work is being performed. We call these Gemba Walks (Gemba is Japanese for the place where work happens). In a Gemba Walk you want to observe your processes in action and look for signs of lean waste that need to be removed.
Management by Procedures is how McDonalds or other successful franchises manage their business. You start by defining your process using a process map to build visual communication and understanding. Next, write down what needs to get done, by whom, and when. Then deploy and practice the procedure. Perfect the procedure until you have a consistent process just like a franchise would need to roll this out to hundreds of others.
Managing by procedures is not a paper exercise. It requires basic goal setting from the Management by Objectives crowd and also process checking from the Management by Walking Around group. What’s different is that you will have process documentation that includes a process map, policies, procedures, and objectives that are clearly posted. Systems are put in place to ensure your employees do not make mistakes. And as a manager, you are actively involved in making sure your systems are working.
A franchise is built with consistent procedures. Franchise owners are trained in the process and systems are put in place, by the franchise organization, to ensure that the franchise delivers the same consistent quality that the brand has built.
You too can start practicing how to Manage by Procedures by ordering the Office Procedures Bundle that is now on sale for 50% off during the month of December. You will save $300 and receive 110 procedures, 124 supporting forms, and other supporting Word files that explain how to write procedures and use the manual. You will receive this extensive set of policies, procedures and forms.
Easily editable policies and procedures for multiple departments:
- Accounting
- Administration
- Customer Service
- Disaster Recovery
- Engineering
- Environmental
- Finance & Credit
- Information Systems
- Manufacturing
- Personnel
- Sales and Marketing
- Security and Operations
- Shipping and Purchasing
Download a sample procedure template right now and see for yourself how this amazing bundle can help your business build greater consistency for success.
Categories:
Business Management & Operations • Process Management
Tags:
business communications • business process • Lean Daily Management System • Lean Thinking • organizational goals • PDCA • policy and procedure management • visual management
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Originally published in 2011 by Bizmanualz, Inc. under the title Management by Procedures. All rights reserved. Reproduction permitted with attribution only. www.bizmanualz.com








December 11th, 2011 at 7:54 pm
Good morning Mr. Anderson,
I am into rural banking business. I want to standardize procedures on different facet of operation in the rural bank environment. Can you help me?
Leonida
January 23rd, 2012 at 9:36 am
I would start your project with the Business Sampler. We also have a Banking supplement that comes free with the purchase of the Business Sampler. These two products will get you started with your Banking procedures project.