Operating Procedures
Restored from the Empower Network archive (2011–2017), lightly edited to meet our current advertising standards. Views are the original author’s.
During my years as a consultant to small business I personally, wrote, tested, and successfully implement these business operating procedures for my clients.
Now that I am retired I do not have a need to keep them and therefore I have decided to make them available to the public. I hope they serve you well.
Here is a description of each procedure:
Cash Flow Forecasting – The purpose of this Standard Procedure is to establish and define a new methodology and format for use by the company in projecting its Weekly Cash Position.
Profit Plan Preparation – The purpose of this procedure is to describe the development of the Annual Operating Profit Plan for the company.
Flexible Budget – The Budget Worksheet is on an Excel Spread Sheet which has been loaded into this Microsoft Word Document.
Breakeven Analysis – The purpose of this procedure is to describe the method of calculating Breakeven Points and using Breakeven Analysis for decision making.
Variance Report – This procedure explains the preparation and analysis of the Monthly Variance Report to ensure control of expenses.
Weekly Position Report – The purpose of this standard procedure is to define the method to complete the Weekly Position Report for the company.
Executive Review – Keep this list handy to remind yourself that you need to look into these areas on a daily, weekly, or monthly basis as needed by category.
Management Meetings – The purpose of this Standard Procedure is to standardize the company’s management meetings.
Mission Statement – This operating procedure offers a method of formulating a simplified mission statement to be used as a basis for Strategic Planning and as a communication medium for all who do business here.
Strategic Team Operating Plan – The strategic plan defines the foundation and the growth plans for the diversity desired by the Owner. It should include a Vision or Mission statement as well as budget pro-formas.
Organization Structure – The procedure is presented in such a manner that the Functional Organizational Structure, the related functions, and a resulting Position Organization Chart can be developed.
Delegation of Authority – The purpose of this Standard Procedure is to outline the principles of delegation and describe the method of putting this vital management tool into effect.
Position Guide Development – The purpose of this Standard Procedure is to outline the use and development of position guides for the personnel in the company. There should be a written guide for every management and supervisory position in the company.
Hiring Procedure – This procedure is a general guideline for finding the best qualified employees for the company.
Performance Evaluations – Appraising your employees’ performance is one of your most important responsibilities as a manager and it will be one of your most difficult jobs. As you will learn from this operating procedure, the appraisal program is a critical link in a series of steps that move us toward company goals and objectives.
Progressive Discipline – In order to achieve and consistently maintain a good climate of employee relations, all supervisors need the tools to do the job, and must understand the nature of the disciplinary process…what it is, how it functions and the consequences if appropriate and prompt actions are not taken.
Employee Compensation – This Standard Procedure will outline the Employee Compensation policies and administration at the company.
Profit Based Incentive System – This procedure provides an outline for an incentive compensation plan for the company’s eligible employees.
P.S.: You can get your copy of Business Operating Procedures here now.