Often for Micro Business the running of day to day operations is done by the business founder(s) or partners. When the business is growing, profits are increasing and contracts are pouring in not a lot of organizations with the above structure of hierarchy prepare for the improvement and future development.With limited number of employees such organizations are able to show good revenues by stretching their capabilities and furnish orders to customer’s satisfaction which is good because that’s what businesses are for to make money is to develop a good management . So why does this cycle come to hurt when times are tough.
Answer is management very simple. Scope creep comes into picture here. The basic requirement are definitely met and since every management take a lot of pride in the products and services they provide, fulfilling the customer requirements is done in best possible way. The scope creep/plateau form comes in after 7-8 years of being in business. This is also because the economic recession and inflation cycles exhibit the same nature. To make and keep up with the same profits more is required from every employee. With the variables already known, either sell more products/service, management make processes leaner, make quality improvements, get more clients/contracts or find new ways of making products/delivering services and so on.
This is the time when quality becomes the most critical. Your product/service is already established. Now management wants to reach new markets and that really comes with great employees and equally good deliverables. Hence the dilemma comes in.
- Which quality improvement accreditation, compliance, affiliations to choose from?
- Will we need to hire employees to keep quality compliance?
- Either hire consultant or take help from internal nomination of employee for reaching quality objective.
- Is basic day to day activities directly or in-directly affected?
- Are the least possible requirements to be met?
- What would be the effect of this on the process and increase in bottom line of products/service?
- What would be the long term impact, is cost justifiable if few of your clients want these quality improvements and others do not care one way or other?
- Is there room to increase cost per product if this route is considered? Will clients be accepting the new cost structures?
My blogs to follow will provide answers to some of these questions.