The 4R Approach to Small
Business Management and Planning
This simple concept can boost your personal productivity and profitability, slash your stress levels and give you more free time to enjoy the results of your efforts
A comprehensive study of decision makers in the USA by Dr De Woodt found that members of this group are in truly productive mode for only 3% of their time. In other words, 97% of their time was spent doing things that could be done faster, better and cheaper by other people.
The “Faulty Solenoid” Syndrome
In our productivity seminars and workshops we refer to a condition we call the “Faulty Solenoid Syndrome”. We observe it in many people who have difficulty deciding their priorities.
A
solenoid is a simple electromagnetic device found in thousands of everyday items,
such as vehicles, household appliances and machinery. When power is fed to a copper
coil surrounding a cylindrical magnet, it reverses the polarity of the magnet, sending
it to the opposite end of the coil. This is used to trigger on/off and open/shut
switches.
However, when the solenoid is faulty, the magnet jams in the centre of the coil, unable to decide at which end it should be. It vibrates furiously. creating heat, smoke, noise and, sometimes, catching fire. It’s useless… fit only to be thrown away.
Unproductive people are often
just like faulty solenoids in their behaviour. Because they’re unable to effectively
prioritise their activities, they worry about the things they’re not doing.
They may even feel guilty choosing one thing over another. They become stressed,
unable to focus on one thing because, if they’re doing this they’re not doing that, but if they do that, they’re neglecting this — so they
jam up in the middle of an ever-growing pile of tasks and activities, vibrating furiously,
unable to decide what they should be doing, generating lots of friction, noise, heat
and smoke, busy being busy for the sake of being busy.
Sound familiar?
The critical difference between people in this state and faulty solenoids is that people can be helped. They don’t have to be tossed aside or replaced.
Here’s a simple management approach that can simplify assigning priorities, enhance your ability to focus, and boost your productivity (and reduce stress levels) dramatically.
|
Process (Action Plan) |
Result |
This simple formula is a chain reaction of cause and effect. And, like any process, the secret is to start at the finish(!)
4. Results
Decide on the result you want to achieve. Quantify it in terms of specific achievements. What will happen when the result is realised? What will people be doing? How many sales will be made? How much profit will be generated? Be specific.
Next, identify the specific activities that will be needed to create this result. This identifies the process involved. But this is only the starting point. Flowchart these activities into a detailed Action Plan showing the stages and steps involved.
The trouble with Action Plans is that they often become the crisis trigger. Unless you can give proper priority to the various components, the “Faulty Solenoid” Syndrom looms as a major threat to the project. So we need to take a step sideways and look at other ways of managing the process.
3. Resources
You now need to identify the kinds of resources you’ll need to complete each part of the process (activities). These may include things like money, equipment, skills, knowledge, people, time, permits, licences, facilities… even intangible things like the kinds of attitudes and perspectives required. Remember — success lies in the details.
Having identified all the resources you’ll need to create the desired result (cause and effect), it’s time now to identify the sources from which those resources will come.
2. Relationships
Any resources you don’t already have will come through relationships of one kind or another. For example, why do you have employees? Bankers? Suppliers? Advisors? Sub-contractors? Because they provide resources you lack.
That’s business!
Business is nothing more than the exchange of resources for profit. The process of exchange is the relationships involved. Relationships are essential to every aspect of business (see “The Goose or the Egg?”). They’re the one HUGE competitive advantage that small business has over BIG business — and which conventional BIG business planning methods exploit as little more than a means to an end. BIG business simply doesn't understand or value personal relationships. If you’re uncertain, ask any employee or customer of BIG business!
Once you’ve identified the relationships you’ll need to provide the required resources, plan strategies to manage those relationships — to initiate, maintain and enhance the relationships themselves, always with the perspective that any results they produce are a BONUS! When people perceive that the relationship itself holds true priority over any results, you’ll be deluged by the results they’ll give you. It’s one of life’s ironies.
Put contingency plans in place, too, in case unforeseen circumstances threaten these relationships in any way. Remember the “Supposition” Principle… that it’s as important not to be misunderstood as it is to be understood in any relationship. Think through all possible implications of your decisions beforehand.
1. Roles
Group these relationships into managable roles for yourself. This gives clarity, focus, cohesion and cogency to the process.
Define your roles clearly, then manage your time and activities under those headings. When planning your weekly/daily schedules, allocate blocks of time to each role. List your tasks and activities under the appropriate roles. When it comes time to focus on a specific role, you can now focus on the relevant tasks and activities without worrying about all the others, since you know that time has been allocated for them in your schedule. Keep it flexible, too.
At the end of each day, review what you’ve accomplished. You’ll be amazed at how productive you’ve become — and how little stress you experience.
As a bonus, you’ll also find you have more free time for the relationships that normally end up neglected in the “Faulty Solenoid” Syndrome… family and friends.
Role management is the best way I know for reclaiming your life.
Remember, though — the 4R Approach is a TOOL. It’s not a process. It’s a way of managing processes in a more productive, prioritised way.
Teach it to your people.
And teach it to your kids!
