Sometimes when my computer gets sluggish, I defrag the hard drive to fix it. Defragging is a process that cleans up your hard drive. It does this by finding stray bits of information, re-organizing them to leave more free space on your hard drive, which enables the computer to operate more efficiently.
After using the defrag function on computers, I came to understand that we also use a similar process in our business. In fact, we're defragging some element or aspect of our business at any given time. If you are in business you will know what I'm talking about. You know those processes in your business that just break down, fall apart or become redundant over time? They get slower and more noticeable. At a certain point they begin to irk you; that's usually the time to defrag. For example, consider the process of building a piece of furniture. Once you build a few chairs, you will most likely notice parts of the process that can be improved, innovations that will streamline the process and save you time and money. This is probably your clue that it's time to defrag.
Another way to look at defrag is to compare it to a tune-up on your car. If you don't go through and tweak at least the air and fluid functions, your engine will get sluggish and eventually quit. Defragging vehicles is more commonly known as repairs and maintenance. For someone who works at a desk, defragging might consist of a reorganization to make it more efficient to work there. For a business there is always something begging to be defragged.
Here are a number of areas of your business you might wish to scrutinize for their potential for defragging:
A) Business Concept - your vision, your corporate mission, the products and services that you offer, your short-term business goals
B) Marketing - market area, customers, competition, how you sell your products and services, advertising and promotion, pricing
C) Operations - computer hardware and software, how you manage your people, policies on safety, banking procedures, invoicing, trade accounts, your telephone service, insurance, and staff training
D) Financial - sales forecast, costing, operating expenses, asset management, how you collect your receivables and how you manage your payables
If this list looks suspiciously like the parts of a business plan... it is. Improvements in any one of these areas can mean the difference between business survival and crashing.
Here is a suggested process for managing defrags:
Identify and understand the overall process.
Identify the weaknesses or problems in the process.
Consult with all the stakeholders in the process.
Brainstorm and research solutions.
Identify the effects of your solutions (ripples).
Develop a plan to defrag.
Do it - try it - fix it - run it.
It seems that some of the better systems endure the test of time and change, while others beg more attention. Whatever the process, be assured that you will be defragging it occasionally. Most important of all - have fun with it!
Dan Boudreau is Author of Business Plan or BUST! and hosts the RiskBuster Practical Business Planning Oasis at http://www.riskbuster.com
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