In last month’s magazine, I focused on the first part of step #2, listing and organizing all of your firm’s procedures to create a blueprint of your business in terms of its processes. Let’s continue:
Process Identification – Running the Business (Admin, Finance, HR & IT)
We refer to his quadrant as running the business because it includes all of the processes that are happening ‘behind the scenes.’ These are the back-office procedures and operations – all of the processes that are not directly related to delivering on your promise to your clients. Processes in this key function typically fall into four different sub-functions:
1. Administrative Processes
2. Financial Processes
3. Human Resources Processes
4. Computer Related, IT type Processes
Hint: Once again, if you log into your TouchStone account, click on the four key functions running the Business, and click on the [Library] button, you can view a list of sample processes for this Key Function.
Administrative Processes: This sub-function is usually pretty obvious – processes like organizing the office, filing, email handling, office supplies inventory, garbage, opening, and closing the office, for example. But sometimes this section may include processes that deal indirectly with your clients or prospects. The keyword is ‘indirectly.’ Greeting clients when they call or visit your office, for example. This probably isn’t something you promised them during your sales process. What are all of the administrative processes that are happening in your business? Think of processes like; answering the phone, office organization, filing, greeting clients.
Claim your Free Law Firm Growth Strategy Session
Financial Processes: When you are thinking of your financial processes, consider the obvious ones like invoicing, collections, purchasing, payroll, completing a travel expense report. But also remember to include the financial reporting processes such as cash flow, budgeting, and financial statement generation.
Claim your Free Law Firm Strategy Session
Claim your Free Law Firm Growth Strategy Session
Human Resources Processes: If you only have a few employees, or even if you’re a solo practitioner, you may think you don’t have any Human Resource (HR) processes. If and when you hire someone, you’ll follow your processes for recruiting, hiring, and on-boarding. If your employee has a complaint, you’ll follow your process for employee complaints. If you have to let an employee go, you’ll follow a termination process. For that, you may also want processes for verbal and written warnings. And how are you going to handle increases in salaries or pay? You’ll want a process for that as well. These are all HR type processes. What are all of the employee-related processes that are happening in your business? Think of processes like; hiring, benefits, employee problem resolution, firing …
Claim your Free Law Firm Strategy Session
Computer Related, IT type Processes: Similarly, you may think you don’t have any IT processes. But you do. You probably have a process for backing up your data, for purchasing new hardware and software, for installing and uninstalling software, for disposing of hardware. And a process for hacked or phished email is helpful for your team. These are all IT type processes.
Remember: All of the activities listed for this Key Function should be the processes that are happening behind the scenes; admin, HR, IT, and financial. The list should also include all of the processes that deal with your employees other than management type processes. These will be part of the next Key Function.
Process Identification –
Guiding the Business (Strategy and Management)
To be able to create the business that you want, you need to have a well-defined description of that future business. In this way, you can guide the business from where you are today to where you want to get to.
This key function holds all of the processes for guiding and managing the business, and in our work with businesses both big and small, we have found that this area is often the most deficient.
Most entrepreneurs do very little in the way of Visioning and Strategy. They simply don’t make the time for it. They’re too busy working in the day-to-day operations of their business, (probably because they don’t have the processes in place to be able to delegate and manage more effectively). Little if any thought has gone into a clear and distinct understanding of the size and shape of the future business.
Additionally, they and their managers have no idea how to manage. If you think about it, how can we manage other people when we can barely manage ourselves? The answer lies in having management processes to follow – a set of instructions explaining how to have more effective and meaningful relationships with our staff as well as how to hold them accountable for what is expected of them.
Processes in this key function fall into two, sometimes three, different sub-functions. Organize your list into these three categories:
1. Strategy
2. Management
3. Board
Hint: If you’re finding it difficult to think of processes in these categories, not to worry. This happens to be a key function that is rather generic from business to business and industry to industry, and we have a good list to assist you. Log into your TouchStone account, click on the Key Function Guiding the Business, and click on the [Library] button. You can view a list of sample processes for this Key Function.
Strategy: These are the processes used to guide the business forward towards its goal. This includes establishing, documenting, and communicating the firm’s goals. It also includes enrolling your people in those objectives and tracking and communicating the progress made. You’ve probably heard the phrase, “Start with the end in mind.” We call this Your Strategic Vision, and there is an excellent exercise included below to help you in the development of your own Strategic Vision.
• What strategic and management processes do you have in your firm – all of the processes for guiding the business from where you are today to where you want to get to?•
• What are the strategic processes that are used to control how you develop and grow your business? Think of processes like;
› Strategic planning,
› Setting and tracking the progress you’re making on your strategic goals
› Annual and quarterly strategy and goal setting meetings
› Monthly check-ins with department managers
Remember: All of the activities listed should be the processes that are used to guide the business from where you are today to where you want to get to in the future.
Management: Processes in this sub-function ensure the company’s procedures are developed and implemented accurately and efficiently, that all activities are done as consistently as possible, and that expectations from reporting employees are monitored and reported.
• What processes are used to manage people?
› Do you have sales meetings or manager meetings?
› Do you have guidelines for making these meetings meaningful, effective, and efficient?
• What processes are in place to manage the development and implementation of your business processes?
Remember: All of the activities listed should be the processes that are used to manage the development of the business as well as its employees.
Board of Directors Processes: If your firm has a Board of Directors or an Advisory Board, you’ll want to have a separate set of processes in this sub-function for creating some consistency for these meetings as well as to ensure the corporate shield is maintained
• If your company is a corporation, are you familiar with your articles of incorporation?
• What systems are in place to ensure you are following these guidelines?
• Are there any other governing or advisory boards in play at your company? What are the processes required for these?
• What are all of the processes used to create effective meetings and consistent reporting with your board?
Remember: If you have a Board of Directors or an Advisory Board, list all of the processes that are used to manage these boards and keep them informed, including the board meetings.
Michael Mills
Managing Partner
Business Design Corporation
How to Create a Strategic Plan – We have a number of processes in TouchStone General Process Library on the topic of Creating a Vision & Strategic Planing. If you’d like to watch a video log into your TouchStone account, click on the RESOURCE CENTER tab in the top right section of your screen, then click VIDEOS > Process of the Week > Strategy & Management.
PS: If you need help with listing the processes of your firm, please reach out to us. Send me an email: mmills@ businessdesigncorp.com. We’ve done this for hundreds of firms just like yours. ◆
