The Three P’s: Process And Policy Lead To Profit – Episode 1 – Part 2
In this segment of The Three P’s: Process and Policy Lead to Profit, former U.S. SBA Entrepreneur of the Year, Clay Clark, continues discussing with Jack Nadel the details that have made Nadel such a big success in business and life. Walking through Nadel’s book, The Evolution of the Entrepreneur, Nadel continues to break down his concept of the Three P’s.
Clay asks a question concerning the lack of written processes and policies in the average entrepreneur or business. Many of these businesses are able to get away with having everything in their heads versus a documented process or policy. As a business scales, you must have documented processes.
Nadel’s solution to a lack of documented processes and policies was to publish a new manual every year for each of its employees. From Nadel’s perspective, if you have a job, it is your responsibility to focus on that part of the process. This eliminates any ambiguity between branches of a company and also keeps the team on the same page. With a written document that outlines what can and cannot be done, a team can grow and follow the intentions of the business owner. Without the written policies or procedures, Nadel continues, there is no standard way of doing things. Nadel’s experience of seeing FedEx really impressed upon him the need for the process.
Nadel also touches on a common question he was asked while working in his business about how much revenue his company did. Nadel recounts that the revenue, doesn’t matter as much. It’s a good question, but no matter the number, it should not have as big of an impact as the amount of profit his companies were able to produce. The profits come as a result of the implemented processes and policies in a business. Nadel mentions that in his career, he has negotiated many deals. He provides the mind blowing notable quotable, “You have to give something when you get something.”