Introduction of Regular Management

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7 October 2019
Introduction of Regular Management

Regular management on Sevastyanov’s method

I have been introducing regular management since 2012. For me, regular management is the way to run a business at the strategy level. Operation management of the company I transferred to TOP-management using the regulations of the business process. Now I am doing the next renewal of the system of regulations of business-process 3.0 on my factory Himtrust.

We constantly update the regulations. Every 2-3 years I do the update of all regulations because my company grows 30% annually. Regular management gives me the following advantages:

1. For hiring employees

2. No addiction from employees’ stars

3. Scalability of business

4. Integration of business processes and cut costs

5. Unnecessary to spend a lot of time on operational management

6. Increasing efficiency

1. For hiring employees

I have studied a lot of methodologies HR and using my experience I created the method to hire employees for Department Sales and Client Service. I share with you the steps of this method:

1. Publish a vacancy and choose a CV for the first interview

2. First interview

3. If the candidate has passed the first interview so we give him/her the regulations of the business process to study for the second interview.

4. We meet with the candidate for the second interview after 2 weeks. We examine him/her how he/she studied the regulations.

5. If the candidate takes the examine, we hire him/her for the trial period 1-2 months. During the trial period, the candidate should show his/her knowledge of the practice. If the candidate can’t work under regulations in the trial period, we fire him/her.
If the candidate is working under the regulations in the trial period, it means that he/she gives the results and earns a profit.

6. After a successful trial period, each employee creates his/her career under the program of creating skills. This program I created in 2019 and I will share the results in 2020.

Thus, we hire only candidates who use and take the exam under the regulations of the business process. If the employee is working under the regulations, it means that he/she gives the results and earns a profit.

2. No addiction from employees’ stars

I would like to have the star’s team. But from my experience, “the stars” are more expensive several times and are moodier. They are known on the market. They are offered a job. The stars don’t get along with each other. They close a lot themselves and the company depends on their mood. Therefore, I made conclusions to hire common employees with the skills for my company. All other jobs I manage using the regulations of the business process and integrate all staff to achieve the goals of the company. For example, if we are looking for an accountant I don’t check the knowledge in accounting because our CFO asks two or three questions to understand the level in accounting. We give to account the regulations of the business process of the accounting department. The new accountant should know the business process such so when the company makes payments and who is the responsibility for payments and other processes of the company.

3. Business scalability

If the company grows and offers a new product for the market so it means that the company will be increasing its staff. Here, I take the regulations of the business process and added new processes in the regulations. After creating new regulations, I hire employees. I would like to note that the regulations are not a document for all life. The regulations should be renewed when the company grows and changes the business processes.

4. Integration of business-processes

The business process of a department is debugged, but there is no integration with other departments. It means that the business-process will not be working well without integration with other departments. For instance, the sales-managers sell good but the process of the transfer order to the production department is not debugged, so the customer doesn’t get the order on time. Who is at fault? I am to blame because I have not created the integration process between departments. One more example is from my company’s life. In 2019, we decided to open a new warehouse near our manufacture because our output volume grows 30% every year. In 2018, we built a new warehouse inside our manufacture, and we decided to solve the stock for our products and raw materials. The first decision was to open the new warehouse to stock production and keep in the warehouse of manufacture only raw materials. We did the review of our regulations of a business process for the warehouse and found the warehouse of manufacture has enough space to stock all our products and raw materials. There was a problem in integration between the supply department that buys the raw materials in the warehouse, sales department that sales the products from the warehouse and management of the warehouse. We changed the regulations of business-processes for management of warehouse, sales and supply department and did not spend money to rent one more warehouse.

5. Minimal participation in operational management

I spend only a few hours of participation in operational management monthly. Many CEOs spend much time on operational management and control. If you can create the working system of regulations of business processes and link it to the earning system, you will not have to manage your staff daily. You will have to intervene only for changes in regulations of business-process from the growth of the company and emergencies.

6. Increasing efficiency of business

All the points above help to increase the efficiency of the business, and it means that you can earn more money. My manufacture Himtrust grows 30% annually thanks to the system of regulations. I think this is not the limit of growth if using the modern tools of management.

Author: Denis Eganov
Russian entrepreneur
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