Large corporations have long relied on the so-called "best practices". All initiatives such as ISO 2000 and Six Sigma began in the environment of large companies. In reality, however, small companies may need the best practices and can meet most of his disappearance in the absence of them. This is especially true in all key categories of financial management, information technology (IT) management systems, human resources, marketing and risk management. To better understand the basic principles and practices to follow in these categories and an overall operational is essential.

What is the best policy?

In short, a best practice is a political and / or process that improves a business process or a specific area of ​​operation. He is accompanied by benchmarking to ensure that practices are followed and to achieve its desired objectives.

The best practices are designed to achieve one or more of the following objectives:

- Improve accuracy and avoid errors

Increasing efficiency and productivity -

- Reduce costs

Where is the best practice is?

For small businesses, are often drawn from large companies or competitors. Unlike large firms with quality control departments for a best practices initiative is a natural affection, small businesses often have to engage their managers and key personnel in the areas of finance, marketing / sales, service customer and information technology. They tend to have a full plate and no longer has time to develop new ideas, especially on best practices can be taken from other organizations.

To begin, one area at a time.

So how does a small company started to develop best practices? A good place is the industry association. Often, some of the added value the association provides its members with market research, studies, special reports that take-and-white boost to the members. Many organizations screen their members for operational improvements. In addition, the network and direct discussions with colleagues in the industry can be very useful to identify common problems and solutions, which may have worked for another company. Trusted advisors and consultants of the company, accounting, legal, insurance / risk management, human resources, IT and marketing can also bring a lot of good ideas, which can develop best practices.

Finally, a general manager of small business should get their employees to make suggestions and own market research best practices in small business advocacy groups neutral, as the National Federation of Independent Business, Small Business Administration , SCORE and Business Development Centers.

Start a program of best practices, to take one area at a time. Consider first the parts that can be improved, how, and then to develop appropriate policies and procedures to help improve business processes.

Benchmarking is the key.

Create a metric to measure the results of improved practices. This calibration must be performed each quarter by month. Once best practices have been defined and implemented in a field, go to the next area and so on until all core business has gone through a consolidation of best practices.

Remember, the best practices of today may not be tomorrow. In addition, monthly and quarterly benchmarking, assessing all the policies that each year remain in the "best" practice in the field, or to consider new ideas or techniques to maintain maximum efficiency, productivity and profitability.

Best Practices area of ​​the base.

Start the best practices initiative, these following areas and basic measures recommended by leading groups in the sector, experts and consultants:

Financials

- Find a chartered accountant with experience in financing small business and tax matters. This person may be an external auditor or controller of the company. The role of accounting will include tax compliance, preparation of financial statements, projected cash flow, profitability analysis and assist in financial planning, all in accordance with general accounting procedures (GAP).

- Consider hiring an accountant to monitor accounts payable, accounts receivable, banking processes, and budget.

- Buy a program of financial management software to automate the management of books, accounts and transactions.

- Establish financial controls to ensure that all transactions are properly recorded and that records are maintained accurately. Such checks should cover all economic activities, making a list of items of the account checkbook, pay the bill, collect receivables, and financial controls.

- Create specific budget: operations, special projects, and contingency planning needs.

Information Technology

- Form a relationship with a reliable supplier of IT services in a system of periodic maintenance and monitoring in order to avoid unnecessary downtime.

- Using the common practices of network management and, if possible, use standardized software to facilitate upgrades, patches and access to support when needed.

- Institute a policy of distributing software for monitoring and verifying licenses, new versions and upgrades, and avoid unnecessary charges of copyright infringement.

- Back-up data on a regular basis and / or consider having a central data resources for this purpose.

- Take all possible steps to secure the network (eg, configurations to optimize the system's security, to maintain anti-virus software, the Institute for protection of passwords and restricted access policies site, optimize the configuration of system security, encryption of sensitive data, prevent unauthorized devices and control installation and removal of software, etc.).

- Development of disaster recovery / business continuity plan.

Insurance and Risk Management

- With the assistance of an insurance expert, to identify all business risks (eg, debt-related losses of property, business interruption, public or employee, key personnel, personal injury, automobile, and criminal activities ) and of insurance covering these risks (eg, property, and the victim, the recruitment practices liability, professional liability, business interruption, etc.).

- Create your risk management program includes a variety of risks, the use of insurance to cover these risks, and policies / procedures to minimize or prevent such risks.

- Avoid activities that are at risk (for example, can result in injury to employees or customers, may cause one third the risk that the use of the uninsured or under insured as subcontractors, etc.).

- To minimize the risks by implementing risk management procedures (such as installing a state-of-the-art smoke and fire, automatic sprinkler systems, security systems, and the lights, lock areas containing valuables, etc..)

- Buy the insurance, which transfers the risks and liabilities associated with the party (ie insurance company, one of the insured, as a supplier or subcontractor).

- Keep the insurance required by law, such as workers' compensation and auto insurance.

- Build on insurers offering policies designed to meet the needs of small businesses in the market seems to demand management, loss control and inspection bodies.

Human Resources

- Creating jobs that demonstrates that management values ​​its employees, recognizes the importance of work-life balance has adopted family friendly policies and strives to keep employees satisfied.

- You have an open door policy where employees have access to senior management and share their views on policies, procedures, challenges and concerns.

- Provide incentives and rewards for employees a strong work ethic and performance.

- Evaluate the performance of employees on a regular basis and feedback to share with the employee in a constructive and non-confrontational way.

- Make sure employee training, continuing education and supervision that facilitate employee growth, development and advancement.

- Sponsor of team spirit and camaraderie, strength events such as picnics and company retreats and off-site visits to improve communications throughout the department and the base through all levels of employees.

- Working closely with a lawyer in employment law to ensure full compliance with all safety laws.

Marketing

- Undertake an audit of your existing marketing materials, the headers and business cards to brochures, leaflets, website, advertising, trade show booth and signage.

- Look at all the marketing materials based on main criteria: It 'to communicate with our brand now? The market effectively to our target market (s) / customers? It is the master of our strengths, and that what separates our organization's competitors? Together with the materials we present a single brand, corporate identity and message?

- Establish an annual marketing budget by first taking into account all the costs of marketing materials mentioned above, the staff, the exhibition trade shows and travel expenses, membership dues to the association, mailing lists, market analysis and companions paid to marketing consultants. Review these costs related to the annual turnover and net profit to project a realistic marketing budget.

- With the support of a marketing professional (s), develop a marketing plan that uses a mix of marketing, including the use of affordable Internet marketing and public relations (ie, press releases free and features new publications, business and commerce, conferences, etc.) traditional advertising and direct marketing, and improvements to the website such as Search Engine Optimization.

The role of PEO in best practices

A resource for many small businesses find it necessary to help them comply with best practices in various sectors, especially in human resources and regulatory compliance, is a professional employer organization (PEO). PEO, who works with clients of the employer, employees, provides comprehensive human resources, including: wage and tax administration, employee benefits planning and administration, regulatory compliance and value-added performance.

The Alcott HR Group is a professional employer (PEO) that provides support and HR services to small and medium employer organizations. Our clients are companies that can not justify having in-house HR staff or need an affordable and effective HR resource. We are accredited by the Employer Services Assurance Corporation (ESAC) and a member of the National Association of PEO (NAPEO) and New York State Association of PEO (NYSAPEO).