Today, we are going to look at the third operations fundamental. If you have missed the first two, please watch the videos from these links (Part 1, Part 2)
The third operations fundamental is rational business rules.
Business rules are policies and constraints that dictate how you operate and make decisions.
Example of business rules: sales discounts over 10% require a sales manager’s approval, all material purchases must go to pre-approved suppliers, a response time of one business day for all email inquiries.
Each rule requires time and effort to process. So you want to keep the number of rules to a minimum.
Be mindful that rules that you put in place months or years ago might not be applicable anymore as your business evolves. So you need to be actively eliminating rules that are not necessary.
Otherwise, you bog down operations. Frustrations and poor morale result. Not to mention the avoidable cost associated with “dumb” rules.
There you have it, the three operations fundamentals are clear business outcomes, streamlined workflows and rational business rules. When you are able to master those three, your operations would be light, effective and efficient.
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