GROWING PAINS.

Managing business growth

ECONOMISTS TELL US THAT 1999 WAS PART OF THE longest period of domestic economic growth in recent history. Whether one political party or the other takes responsibility for the boom is not as important as how business managers deal with the resulting growth of their companies.

In the past five years many companies, including ours, have suffered the "growing pains" of significant increases in business volume. While we are very pleased about this, the increases brought with them large demands -- not only on our production facilities but also on the infrastructure of the companies. From telecommunication systems to photocopiers, this economic development has changed the dynamics of how we do business.

Information systems

The ability to grow is directly influenced by the ability to communicate information quickly and accurately, starting with the customer's order through the production and shipping lines. The volumes of data and information required to support the growth are monumental. The simplest consideration may be to ask the question "Do we have enough telephone or fax lines to serve our communication needs?" The more complicated question may be "What size computer mainframe do we need to best serve our management information systems?"

Processing order information is a big part of how quickly a product can be prepared for delivery. Yet, no progress can be made if the order information is processed quickly and there's a holdup on the shop floor. When business information systems need to change, consider the influence the alteration will have on the ability to actually ship the product. That's the bottom line. The simple transfer of data may not provide the facts needed to weld a door frame, hand a lockset or prepare a wood door for hinges.

A complete information system should allow the order to be placed, generate a work order and a bill of materials, make inventory adjustments, schedule the task, apply the charges to accounts receivable, and note receipt of payment. The system that manages these tasks will likely be a combination of people and computers, and will undoubtedly have some challenges. Flexibility is of the utmost importance so that, as the needs of the customer change, so too, can the business. It could be said that our real business is information and the products we provide are evidence of our ability to process that information. This is true regardless of the size of the business.

Manufacturing processes

We all know the more times a piece of information is handled or interpreted, the more chance there is for an error to occur. Therefore, as the capacity to collect information from a customer increases, the need to transfer that information directly and accurately to manufacturing or shipping also grows. This completely changes the degree of information technology required to manufacture and ship products. The type of information required does not change. The way the information is processed and translated to manufacturing work instructions is what changes. Managers are faced with a make/buy decision and must determine if it is time to invest in technology specifically designed for their company.

The electronic transfer of information has revolutionized the way we communicate. In a manufacturing environment it forces us to be able to identify and classify each factor that may affect the process of producing finished goods. Completely new languages need to be created to instruct the production equipment and the operators about the requirements for filling orders. Through intricate systems of fiberoptics, photo-sensors, servo-motors and digital readouts the data representing the order is transformed into products. The planning and management of these systems and its processes is essential. It is also essential to recognize the relationship of each manufacturing process to the total production unit and the effect changing one process may have on the operation of the whole facility.

Training and retention of employees

In an era of low unemployment, managers must be even more acutely aware of the need to continuously increase efficiency among existing employees while encouraging them to stay with the organization on a long-term basis.

Improvements in internal and external communication capabilities necessitate the training of all personnel in the operation and effective use of those systems. The easiest way to facilitate this is to actively involve the existing users of the systems in the planning and design stages of the new program. This allows participants to have input and gain a working knowledge of the need for the new methods. This provides a nucleus of people within the organization who can train new associates so that growth can be met in an efficient and cost effective manner.

The development of training programs for each position in the office and on the shop floor is extremely helpful. In the face of fast-paced growth, it is no longer sufficient to only rely on traditional training. A structured in-house training program becomes the answer. This requires identifying the tasks involved, documenting work instructions, clarifying the relationship of the assignment to the whole operation, defining performance expectations, and developing tools to assess progress. The use of a formalized in-house training program provides a repeatable and dynamic tool for helping employees to become as productive as possible. This process also helps identify the duties that are essential and basic to the operation of the enterprise. Growth is based on the ability to meet the demands placed on the essential services of the organization and the organization's ability to repeat those services.

Retaining employees will continue to be a difficult challenge and the best resolutions come from within an organization. One of the best working solutions for this eventuality still rests with cross training of personnel to help bridge gaps as staffing changes occur. Cross training will help to diminish reliance upon a single key person. If the organization were to lose a key person, their contribution will certainly be missed but the company can continue to function effectively.

Another solution for retaining employees is to create and perpetuate a fair and friendly working environment. Perpetuate may be the most important word here -- it takes effort to ensure the work environment stays positive.

The future

Business managers all around the country ask themselves, "How do we deal with the current upward growth patterns?" and in the same breath must ask, "What happens when the growth stops or even declines?" Decisions made for spending become a balancing act. It is a compelling force to want to invest in resources for growth. Manufacturers know that customers want to feel secure that their supplier is making investments to handle their needs now and in the future. Still the possibility of a slowdown in the economy warrants caution. After all the risks are considered, manufacturers typically choose growth and make the expenditure -- it's good for business.