7-Step Approach to “Surviving” Rapid Growth
July 25, 2010
by Avik Roy
Nothing pleases small company CEOs more than an oncoming wave of customer demand. When the wave hits they often discover the force can disrupt and derail their business. It can overwhelm overworked employees; push ad-hoc processes to the verge of collapse; and quickly exploit vulnerabilities of fragile systems.
Sustaining rapid demand growth requires flawless operations. Yet seemingly random choke points pop up, undermining important levers of performance. Product or service quality erodes. Timelines slip. Irritable customers complain about service and support. Renewal rates and repeat orders slow and maybe decline.
Human capital, the most critical resource in a crisis, buckles. Front-line employees are pulled concurrently in several conflicting directions without a coherent action plan, clear guidance, or essential resources. Stress levels rise. Collaboration and teamwork is frayed. Mistakes proliferate. Unless arrested quickly, this negative swirl spawns other challenges.
What should leaders do when rapid revenue growth is accompanied by rapid operational decline? I recommend focusing first on people and process to turn such moments of adversity into strength within a relatively short period of time. Here are seven steps on how to do just that.:
- Define Objectives and Pinpoint the Right Metrics:
Make explicit the business outcomes that will frame success. Translate business outcomes into 3 to 5 measurable performance endpoints. Ask what will delight the customer. Most small businesses either measure the wrong things, or pour through a “data-dump” in lieu of real performance yardsticks. - Embrace Transparency:
Share the right metrics up and down the organization. Everyone on the team must know where the “ship” is headed and important markers of progress. Metrics or performance data in most small companies is shared only by a few people at the top. - Make Simple Process Improvements:
Review existing operations quickly to identify improvement opportunities. First, use the 80-20 rule. Identify the few key tasks that use up 80% of employee time. Ask “How does this help achieve our performance metrics?” or simply “Why do we do this?” These questions will pinpoint opportunities for the organization to improve effectiveness. Second, focus on finding easily implementable changes to existing work processes that will improve operational efficiencies. Think faster-better-cheaper. - Review & Modify Job Design:
Identify jobs impacted by these process improvements. Think through, modify and document job design changes. Use “Before” and “After” snapshots. Sit down with each individual and make sure they understand what they need to do differently and how. Address skill gaps with training, mentoring or coaching. If staff needs to be reassigned or removed, this is the time to do it. - Personalize the Metrics:
Help each individual understand how their actions “move the needle” in achieving the targeted measures of success. Show how points of contact roll up individual action into teamwork, and impact other key metrics. This creates self-awareness, helps change behavior, and provides a framework each person can use to prioritize their actions. - Invest in Building Confidence:
Instill self-belief and restore lost confidence within your organization. Like in sports, an organization’s “mental game” gets dented in the face of questions and doubts about performance. Celebrate successes, use verbal persuasion, build positive imagery, and induce a state of “relaxed concentration”. Work from the individual up. - Track, Monitor & Tweak:
Build a self-reinforcing culture of performance. Not a one-time fix.
Small companies don’t have the time, resources, or temperament to apply classic Six Sigma, LEAN, or other rigorous techniques. This 7-Step approach will harness the positive energy of employees and associates to improve performance in ways that delight customers. It will also create strong alignment between what the business aims to achieve, and how the organization directs and manages its attention.
American Clean Energy
July 14, 2010
Thank you for the support over the last few months as I transitioned from a “traditional” business to a start up entrepreneurial role. … While I know the road to success will be challenging–as it should be–the support of the great staff at Res Partners has prepared me for the journey in a way that I feel confident will lead to success for me and my company. The insights and advice gained have been invaluable and I highly recommend that anyone seeking to embark in this direction take advantage of the services and expertise of Res Partners. Your friendship and professional counsel have been instrumental in my progress and I appreciate your efforts on my behalf.
- Steve Morgan, CEO American Clean Energy
Pharmaceutical Regulatory Services
July 14, 2010
“I have been using Res Partners’ on-demand suite of highly experienced executives since September 2009. The complexity of my business had grown beyond my own knowledge, and those of my key employees. I needed the skills and wisdom of battle-tested senior executives across a mix of different disciplines to make better-informed decisions, mitigate significant risks and help improve my business. Now, with one phone call to Res Partners, I can quickly pull in the right combination of executives, at the right time and for just the amount of time needed, at a fixed price I can afford. Res Partners is the only company I’ve found who can offer this unique style of service.”
– Dr. Jurij Petrin, CEO Pharmaceutical Regulatory Services, Inc.
Successful New Industry Expansion
July 7, 2010
by Andy Mangano
Client Situation:
A tier one automotive supplier was looking to diversify their revenue stream and product offerings by expanding into the fulfillment of sample medications and literature for the pharmaceutical industry. Their expansion was enabled by partnership with a third company. 
The challenge was to maintain the company’s preferred supplier status within the automotive industry while cost effectively setting up the processes and procedures to support their expanded business plan. Res Partner’s led the identification and implementation of the new business process and associated regulatory filings needed. This included the initial filing within the controlling state along with supporting the filing of licenses within all 50 states.
What We Did:
In order to establish a base understanding of what tasks needed to be implemented an audit of the facility was conducted along with their existing procedures (the organization is ISO certified). In conjunction with the senior management team a project plan with key deliverables was drawn up and agreed upon. The Res Partner’s Consulting Principal then conducted a training program in order to educate the organization on:
- the new business process for fulfilling pharmaceutical samples and literature
- what the regulatory agencies would require; and
- a perspective on pharmaceutical clients would expect.
The next step was a detailed physical audit of the location, which resulted in recommendations to corrected noted deficiencies in the facility. These recommendations were approved and implemented within the building. In addition, the current organization and its competencies were reviewed and subsequent recommendations were made for required organizational changes. Once this was accomplished the organizations current process flows were reviewed to ensure the organization continues to maintain their ISO certification. We then established a base of required process a flows and Standard Operating Procedures (SOP’s) that had to be written and approved. The Res Partner’s Consulting Principal generated these necessary documents to maintain the ISO certification. Once completed these documents were reviewed and approved by the company’s management team, they were communicated and implemented throughout the organization. Our last set of steps was to submit the proper paper work with the state, which was coordinated by the Res Partner’s Consulting Principal, and the actual audit scheduled for the organization.
Results:
The organization successfully passed the audit conducted by the state and they were granted their pharmaceutical distribution license, at the end of audit, by the inspector. The state inspector made a strong recommendation that other organizations should follow this company’s lead on how to operate. A Res Partner’s Consulting Principal coordinated the filings for the other state licenses’ and the company is in final negotiations for their first supply agreement.
Improving Compliance At A Global Life-Science Client
July 6, 2010
by Chris Wubbolt
Client Situation:
A large, global pharmaceutical company determined its product complaint handling program was inefficient and considered a significant compliance risk by the Global Quality Management organization. Over 1000 product complaints were past due and the existing organization did not have basic tools in place to maintain a compliant quality system. The instructions describing how product complaints were to be handled were split into 12 different, often contradictory Standard Operating Procedures (SOPs). The product complaint group did not have a method or system to track due dates for investigating and closing product complaints, and the personnel within the department did not work together as a team to assure organizational objectives were met.
The client asked us to analyze their existing processes, systems, procedures, and personnel; provide recommendations for improvement; and implement the recommendations. The project required us to meet tactical business needs (e.g., investigating and closing new and existing product complaints) as well as address strategic initiatives, such as implementing a sustainable, effective product complaint management program.
What We Did:
We first focused on assuring existing product complaints did not pose a threat to product quality or patient safety. Therefore all existing complaints were assessed and prioritized based on their potential severity. Next, we prioritized based on the “age” of the product complaint. All product complaints were entered into an interim spreadsheet that was used to track their status. 
In parallel, daily “stand up” meetings were held to discuss the status of new and existing complaints and to assure product complaint team members were working together to reduce the existing number of overdue product complaints.We then developed functional flow charts to identify the “AS IS” product complaint process. Using appropriate metrics we identified inefficiencies within the existing product complaint process, which may adversely impact product quality, patient safety, and compliance. A “TO BE” functional flow chart was developed based upon input from the various stakeholders involved in the product complaint process, including manufacturing, distribution, quality control, and regulatory affairs.
The TO BE functional flow was used to develop a single, unified SOP which defined the new product complaint handling process. The functional flow charts were also used as input into a User Requirements Specification (URS) for a computer system which was implemented for entry, tracking, trending, and reporting of product complaints. A URS is required by regulatory agencies and identifies the “intended use” of the computer system. The computer system was implemented and validated in a manner fully compliant with regulatory requirements. A second SOP was developed to describe the operation and maintenance of the computer system.
Results:
The project resulted in some pretty significant results:
- Within 4 months of project completion the product complaint backlog dropped from 1000 overdue complaints to 100 complaints (open 30 days or less).
- The myriad of existing, contradictory and non-compliant SOPs had been reduced from 12 to 2.
- A new, fully compliant computerized system was implemented to manage the product complaint process. This system later became a model for the global product complaint handling system.
- Most importantly, the product complaint team gained new work skills and practices which allowed them to sustain the levels of compliance achieved.