Is Your Success Insured?
Don’t worry, I’m not misusing the word “ensured”. I understand the difference and I do mean “insured”, not “ensured”. First, let’s define “insurance”. According to Wikipedia, Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss (from Wikipedia).
Look at it this way: We insure our businesses, homes, health, even our pets. Some of us even purchase Business Continuation Insurance that covers the losses incurred in the event of the untimely death or disablement of someone key to the business. Money, though, cannot replace those critical to our success – and everyone in our organizations, when well-run, is critical to our success. So, why not insure our business’s continued success and company value in that same instance? You can’t financially insure every one!
If someone who is critical to your success leaves your business, for whatever reason, and what they do every day is not documented, your business’ success is threatened (period). All that they know, every system, process, and procedure, if not documented, is lost forever when they walk (or drive) away.
Insurance: Preparing for the unexpected
Part of being an entrepreneur is preparing for the unexpected (potentially contingent, uncertain loss). In this case, it is just a case of being prepared for anything…expected or unexpected. Documenting how your business operates – your Master Template – is insurance against exorbitant employee turnover costs, accountability questions, and the potential loss of critical information key to your success. It also “insures” the asset value of your organization – it can continue without any key personnel, including you.
I talk about this often and I witness the chaos of the companies without this “insurance” when something unexpected happens. The fact is, uncertainty, is a bi-product of a lack of documentation. When everyone is doing the same thing differently, or, when the same process is “recreated” over and over again, it is like reinventing the wheel. The stress and lack of productivity is obvious.
Let’s look at this scenario…Imagine that you started your business with stars in your eyes. It has grown even beyond your initial (wild) expectations. You have lots of employees and have lots of sales. Okay, so maybe it’s a little chaotic at times. Maybe you spend a little too much time putting out fires. Perhaps employee turnover is high, but you blame that on the fact that you have high expectations. You think everything is okay because there is a lot of money coming in. But, and this is a big “but”, you are incredibly stressed and it is just not any fun anymore. Guess what – it’s no fun for your employees, either!
I know a few in this position. And, from the outside looking in, we think they are so lucky to be so busy. In reality, their business and chaos is due to a lack of clearly defined structure that is documented and utilized in daily operations. The fact is, each of the issues described above can be easily remedied through “Success Insurance”:
- Creating efficient and effective systems, processes, and procedures
- Documenting them
- Implementing (training employees and creating accountability around them)
- Updating them as needed.
By insuring your continued success, you will ensure that your “change the world” attitude will grow and continue to make a difference!
GROW, GROW, GROW YOUR BOAT!