PRESIDENT’S MESSAGE: An unknown person once said, “There is nothing so useless as doing efficiently that which should not be done at all.”

When I first read this quote in one of my project management courses, I scratched my head and went, “hum.” Not only did this quote intrigue me, but it challenged me to ask the question, “What am I spending time on that isn’t efficient, or, as the quote suggests, should not be done at all?” In finding an answer to this question, I started down a path called process improvement.

By definition, process improvement happens when a process owner takes steps to identify, analyze, and improve existing business processes within an organization to meet new goals and objectives, such as better customer service, increased revenues, or decreased expenses.

There are many forms of process improvement, such as Six Sigma, Lean Manufacturing, Hoshin Kanri, Theory of Constraints, and Total Quality Management, just to name a few. All have a methodology that allows the process owner to benchmark, measure, and evaluate critical areas in a process. The theory is once a weakness is found, the process can be improved and made more efficient. In turn, this saves time and money.

I decided to use Six Sigma to look at the chamber’s accounts receivable process. My thinking was that every business has an AR section, and really, how hard can sending out invoices truly be?

The results of my simple study were jaw dropping. Not only was the method the chamber used time consuming, but it was plagued by duplicate invoicing and inaccuracies with addresses and points of contact. Further study suggested a solution: by switching to an annual invoicing process, we could save more than 300 hours of staff time while eliminating redundant and incorrect invoicing all together. The bottom line: I found 300 hours of staff time to better support the chamber’s members and mission without spending a dime.

I decided to ask other local businesses owners if they had done any recent improvement projects. Surprisingly, 3 out of 10 folks I asked had. Their outcome? All three — 100 percent — experienced results that saved them time, money, or both. I would like to share one of the more “astounding” stories with you.

A certain company, well established in the seafood industry, has been around for 20-plus years. When the company was in its startup phase, a contract to fresh freeze scallops at “x” amount per pound was made. More than 20 years later, this contract was still in place. The difference being, however, the company currently processed more than 2 million pounds of scallops per year instead of a few thousand.

Recently, a new general manager took over and decided to re-bid the fresh freezing process. The end result was — and still is — mind-boggling. By re-bidding the process, the company saved 31 cents per pound on its volume fresh freezing. That is more than $600,000 profit added directly to the organization’s bottom line.

The business I cited above is a profitable organization, and conventional wisdom states that if you are already profitable, there isn’t anything to fix. Yet by following conventional wisdom, the owners threw away millions of dollars in profit over the last several years alone.

The assumption this company made is not unique or, unfortunately, uncommon. Many startup companies that grow into a larger organization fail to update their processes and contracts. Often, it takes a “new” set of eyes to figure it out for them.

The question that begs to be asked is this: if as a small, nonprofit organization I can find more than 300 hours of manpower savings by updating one process, what can your organization do? If a profitable business can add hundreds of thousands of dollars to its bottom line by simply competitively re-bidding a critical process every couple of years, what about your business?

The Mid-coast region is made of literally thousands of small business. While the owner might be outstanding at providing a particular product or service, most are not experts in all of the areas required in running a business in today’s competitive environment. This is where the Southern Midcoast Maine Chamber can help.

The SMMC sponsors more than 40 business success seminars and networking events per year. We work with agencies such as the Small Business Administration and member consultants to provide business improvement workshops at no or lowcost. Subjects include marketing, social media, how to write a press release, managing your work force, time management, search engine optimization, financing and much more. To find out about the next workshop, visit our website at www.midcoastmaine.com.