Errors In Business Systems

One mechanism that can help a business owner in identifying error is a Feedback Mechanism.

Business owners must consciously build a feedback mechanism into the system.

Business owners must hear directly from customers, employees and vendors.

Another mechanism that can help in identifying and eliminating deviation is Audit Mechanism.

Business owners must ensure regular audit of all the business transactions and activities. Records should be checked for accuracy and currency. There should be different levels of audit:

1. Level 1 Audit – individual staff recheck and update all records on a daily basis

2. Level 2 Audit – unit managers check and correct all records on a weekly basis

3. Level 3 Audit – business owner verifies all records and process performance on a monthly basis

4. Level 4 Audit – business owner brings an external body to inspect all records and give recommendations on the business performance.

Information received must be measured against business objectives. And where there are deviations, corrective actions and recommendations must be actioned immediately.

“Deviation in a business will be amplified at the velocity of its transaction.”

The faster your business activities, the more pronounced are the errors in the business.