Two Types - Internal & External
My client rescheduled our time twice in a row due to emergencies. It got me thinking that there are two types of emergencies. To over simplify (a little) one type is internal. A machine breaks down. Or you run out of cash.
The other type is external - things happen outside your company that you need to deal with. Often these are unforeseen problems that customers call on you to fix. In either case, don't stop by fixing the problem. Work to prevent it from happening again.
For Internal Problems
Prevention starts with the 5-Whys. Ask why it happened. Then ask why that happened, & why THAT happened. There's no magic about the number 5. Ask till you get to the root cause.
Usually the root cause is a person problem. That’s good news because it’s fixable. Someone wasn't trained properly, didn't communicate, didn't have the tools or the ability. Something like that.
Then develop better procedures to make sure that root cause is corrected. Schedule maintenance on the equipment and have backups if necessary. Check your cash on a time table and know what to do before it becomes a crisis.
For External Problems
You're like a fire department or emergency room. An emergency is not an interruption – it’s what you do. Fixing problems is part of the value you provide even though you can't schedule them. You need three things.
Thing 1 The resources to handle the expected load even when you can't predict the details. That means sometimes those resources will be sitting around. That's not waste. You have to strike the balance between just in time and just in case inventory levels.
Thing 2 Good procedures and training. An emergency room can't function if things aren't stored in the right place so everyone knows where to find what they need. Or people haven't practiced how to deal with certain situations.
Thing 3 Make sure you're charging for the value you provide when solving customers' problems. You can build this into your original price, charge for ongoing support, or charge on a case by case basis. Your value doesn't end when your product is delivered.
Just because you can't predict the details of an emergency doesn't mean you can't prepare. Make a list of recent emergencies and note which are internal & which external. You’ll know what to do next.
