The Powerless Business Owner

The powerless business owner

Dan is the owner of Foodie, a successful restaurant. He loves what he does and has a great team. It’s like a big family. Except for one employee, John.
If Dan is the father of the family, John’s the mother. Employee of the month for the past 6 months. The customers love him. He’s also able to whip the other employees into action. Very charismatic fellow, this John.
There’s one problem though. One a few occasions, John had blocked some of Dan’s ideas to implement in the restaurant.
Dan wanted to install fingerprint readers, so payroll could be streamlined. But John, pulling the strings of the rest of the team, vetoed it.
Another time, Dan wanted to restructure the shifts of the staff. That was shot down also.
The restaurant wasn’t as lively if John decided to take a day off.
Dan felt like he was at the mercy of John.
A few of Dan’s friends had suggested Michael, a consultant, as a solution to be free of John.
Michael was brought in to turn foodie into a systems-dependent restaurant (i.e., create an Operations Manual). And free Dan from John’s mercy.
So, Michael got to work. He observed and documented all the tasks and procedures of the restaurant.
Then he created the systems each of these tasks fit into.
After that, he created job roles and responsibilities and assigned the tasks and procedures to each role. This way, everyone was clear on Who does What, When, and How.
Finally, Michael created a company structure to give an idea of who reports to whom and who’s responsible for what.
Michael also trained Dan on how to use the Operations Manual and also showed Dan how to train his staff using this.
Dan then hired a new employee, Sam, and got to work on training the entire staff.
Little by little, John began losing his grip on the other employees, since everyone was being trained to a standard. Things would be the same, even if John threatened to leave, or take some of the employees with him.
A few months later, John was still there. But thanks to the Operations Manual Dan was able to get back control of his restaurant.
Dan can now, using his Operations Manual, make sure that the standards of his restaurant don’t drop should anyone decide to leave. He can also copy paste everything to a new outlet, running just like the original.
He could even sell (or franchise) the business, if he wishes.

Is your business dependent on you?


Huzeifah is the CEO of a packaging business. His father, Imtiyaz, started this business when Huzeifah was just a small boy. A few years ago, his father put Huzeifah in charge of the business.

There were around 40 employees working for them. They owned a store, a back office, and a few warehouses.

Huzeifah wants to build on the success so far. For the past 40 years his father did well, starting off from a humble shop in Pettah, to what they had now, but the business stayed just that: a business.

In this Era, where technology kept disrupting established businesses, Huzeifah knew that a business either adapted with the times or got left back, or worse, became redundant.

Not only was the business behind in terms of innovation, it was yet to function efficiently – like a company.

The staff, knowing that it was a ‘family’ business, treated their employment like working with a kade mudalali. No one came to work dressed like a professional. Some wore sandals on rainy days.

Samples and inventory were strewn about the office like they were expected to vanish magically. Finding out exactly, or reliably, how much stock they had at a given time was a guessing game.

Human Resources was only about paying employee salaries.

Orders and shipments were handled by Huzeifah and Imtiyaz, alone. Finding new customers were also their responsibility. Making sure payments were made and received on time, were also their responsibility.

In short, father and son were basically doing every job (title) you could think of except that of the ‘CEO’ – mapping out and guiding the business ahead.

This meant that both Huzeifah and his father were basically working IN the business, putting out operational fires and trying their best to make sure that there’s a business at the end of the day.

While this was the case, Huzeifah still had dreams for the business, and where he wanted to take it. This started with restructuring the business into a company.

He needed to systemize the operations of the business so that his 40 or so employees are doing what they were hired to do, leaving him the time and energy to work ON the business.

Using his contacts, he was able to find a management consulting firm to come in and do just that.

The 1st thing that was implemented, was the HR system. Immediately, Huzeifah began to see a noticeable difference in his staff and overall productivity. People came to work on time, dressed professionally, and followed protocol for things like applying for leave.

Next, Operations and Finance were mapped out and redesigned to reduce inefficiencies and improve workflow speed. Now, finding out how much stock was in inventory was only matter of a few seconds. The existing employees were reassigned to new roles and given clear specific responsibilities. In addition, each department had a large flowchart mapping out the processes each role was responsible for and who they were accountable to. This meant that finger pointing fell to an all-time low and task completion was at an all-time high.

Huzeifah, nor Imtiyaz, didn’t need to worry about accounts receivables or payables, anymore. Accounts reconciliation was done then and there, and they could easily stay on top of things using their ERP software provided by the consulting firm.

They had regular meetings with the respective heads of each department to keep them abreast of how the company was doing. Not that they needed to, but this reminded their employees that they still had to report to them.

In just 10 months, the entire business was systemized and an Operations Manual drafted, and they were trained on how to train their employees to run the systems.

Towards the end, both Huzeifah and Imtiyaz found the experience of not having much to do at office a little strange. But they soon got over that, and focused all their energies on growing and expanding their company.

Ant & Bee Stories can help you to create a systems-dependent business, which includes an Operations Manual. Check out how we do this. Or Contact us if you want it already.

An Operations Manual for Your Business (and Why You Need One)

Having an operations manual may not be glamorous, but preventing the disasters caused by human error and bad processes can save your business and even (in extreme circumstances) millions of lives.

A perfect storm of 6 human errors — culminating with staff thinking it was ok to turn off the emergency cooling system — caused the Chernobyl disaster, costing an inflation-adjusted $720 billion, 30 deaths and an extreme amount of unsafe radiation.” – Ben Brandall, How Processes Protect Your Business From Crashing and Burning

The truth is, the only way to prevent such errors is to document workflows and processes, and the only way to make sure your employees know what they have to do, how to do it, and have the resources to do it is to create your own operations manual.

What is an operations manual?

An operations manual is the backbone of your company – the encyclopedia for your business. Your employee handbook may introduce your team to your mission, various policies (benefits, holiday leave, security), and culture, but the operations manual will show them how to do their job and give them everything they need to do it.

Typically the manual is either a book or folder of printed documents containing all of your standard operating procedures (SOPs), your hierarchy, contact details and emergency procedures. Whenever an employee wants to know how to do something or needs to know how to contact someone, they can look it up in the manual.

Imagine a manual for a car. In it, you’ll be told what the model is, what the tire pressures need to be, and a myriad of other useful facts which are important to know, but not necessarily off by heart. An operations manual is exactly that, but for your company.

It’s a way of making sure that your team can reliably and efficiently carry out their tasks with consistent results. Human error is reduced to a minimum and everyone knows precisely what they need to do, who they might be waiting on, and who might be waiting on them to deliver results.

Why is having one important?

Think of the last time you or a team member had to complete a task, but they had no idea how to do it. In all likelihood, the task was completed only after either researching how to complete it (and wasting time in doing so) or by disrupting someone else to get them to explain.

With an operations manual, you avoid all that hassle and just get down to what you need to do, letting you make the most of your time rather than working at half-pace. Think of it as an employee knowledge base – a place that anyone can go to when they have a question or need something explaining, rather than bothering somebody else.

Processes are documented clearly

One of the biggest advantages of having an operations manual is that it forces you to have fully documented processes for every task you do more than once. This might sound like a pain to set up, but the long-term benefits for having them are massive.

Aside from increasing your efficiency and highlighting problems in your current processes, the consistency your business achieves is at the core of why processes are important. By having a method which can be executed perfectly time after time you’re standardizing your business model, making it easy to find problems and dealt with them.

It allows you to scale

Without a consistent and reliable business model, it’s next to impossible to scale your business. By having an operations manual to store your SOPs and important internal data, you can easily onboard new employees and identify the factors limiting your ability to scale.

Not only that, but having documented processes in the first place will mean that your operation runs with less wasted time and money, making it able to rapidly expand

Everyone is accountable

A major part of reducing human error is to make everyone accountable for their actions. By detailing the company hierarchy, job descriptions, and parties involved in a given task, you’re effectively keeping everyone accountable for what they need to do, and who they need to talk to if there’s a problem.

In other words, nobody can argue (with someone else or themselves) that a task or duty isn’t their responsibility, and the fact that anyone can access the operations manual means that everyone else will know it too. The knowledge that everyone else knows what you’re responsible for is a brilliant motivator, so your team’s output should also increase.

Important resources and processes are centralized

You could document your processes, hierarchy, job descriptions, emergency procedures, and more all without creating an operations manual. After all, it’s only once they’re collected in a single location that they turn from random files into a coherent document.

However, by centralizing all of this information you’re making sure that everything is available for anyone who needs access at any time. There’s no question about whether the process you’re following is the most recent version because everything is always up-to-date and stored in the manual.

Admittedly, this will depend on the format of your manual. A physical file (a book or folder) will need to have items reprinted with corrections or potentially even a complete re-issue to avoid lengthy and confusing appendixes. Digital operations manuals do not suffer the same problem, giving them an advantage over physical copies.

What to include in your operations manual

Much like with an employee handbook, the challenge here is to include enough detail in your operations manual to serve as a comprehensive knowledge base for your team, but not so much as to bore them into complacency.

If you go into unnecessary detail, you’ll either make them want to skip the instructions or leave them more confused than when they started, making the entire thing pointless. Not enough detail, however, and your team won’t have enough information to correctly and consistently perform the task.

To this end, you’ll need to include sections for your:

Company hierarchy

Job descriptions

Contact details

Documented processes

Emergency procedures

To give you a better idea I’ll tackle each of these sections in turn

Company hierarchy

Here you need to explain the layout of your company, kind of like stating the “family tree” of who reports to who. There’s not much to explain here in terms of content (since it will greatly vary depending on your size and layout), but you do have a couple of options for how to present it.

For example, you could create a text document and use subheaders to separate the various teams, with a brief description of who reports to who. I’d recommend using a visual flowchart to do this instead though, as all you really need to show here is the order of things, and a single chart is much easier to follow than a long-winded document.

Try to focus more on the job titles than specific people (eg, managing director), as then you won’t have to go back and make changes whenever your hire someone new or someone changes position.

Job descriptions

If the company hierarchy is a scannable chart, your job descriptions list is the information to back it up. While not necessarily job descriptions (although fee free to use them), here you should be going through each role in your business and laying out their responsibilities, skills, who they answer to, and who answers to them.

In other words, give an overview of what the position is in more detail, but keep it in context of the hierarchy. That way if someone isn’t sure as to who to contact about a particular issue (or wants to collaborate over a specific task), they can skim the hierarchy to get an idea of who to contact, then confirm it through the job description.

Contact details

Here you need to provide contact details for everyone in your company, and those outside who are in close contact. Easy.

You could combine this part of the operations manual with the job description section if you want to have a more compact document, but having a separate list of contacts can make it easier to skim through and immediately get the correct information.

Documented processes

Your documented processes will be the largest section of your operations manual, especially as your company grows. The trick is recording them in a way that’s comprehensive, but easy to follow.

Whether you’re using a word processor or a better piece of process documentation software, you’ll ideally have a set of checklist templates which give basic instructions to complete various common tasks. These are best separated into categories (such as “accounting processes” or “editing checklist“) since you should be documenting anything that you need to do more than once to make sure you have a consistent approach to it.

Emergency procedures

Finally, any emergency procedures should also be stored in the operations manual. “Emergency” could mean anything from a server security breach to an onsite fire – if it’s possible and could result in damage to your company, product, and/or staff, at least take note of it and draft out a procedure for dealing with it.

You don’t have to cover every situation under the sun, just the most likely ones to occur, and give the best way to limit the damage.

Don’t let your operations manual bore your team to death

The cardinal sin I’ve seen by scouring Google for useful operations manuals is that everything is dull to the point of being useless. Doing this is a one-way ticket to invite disaster once more, as your employees will be more likely to ignore your processes in favor of relying on memory.

So, rather than invite a Third World War, make your operations manual detailed enough to be useful, but simple enough to follow without sending the reader to sleep. Your company (and the general population) will thank you for it.

Originally published in Process Street.

Ant & Bee Stories can help you to create a systems-dependent business, which includes an Operations Manual. Check out how we do this. Or Contact us if you want it already.