The Power of a Checklist: A Simple System that yields Great Returns

Little things in your business are robbing you of profit and sending customers to your competition. With one simple idea, you can create happier customers and rid yourself of unnecessary waste.

When I am wearing my "customer hat," I often get frustrated with the companies I’m trying to do business with. Far too many things go wrong as I engage with their business processes for selling and delivering products or services. The time and rework to get things right is an unnecessary hassle that discourages me from buying again, or recommending the company to others.

Deliveries or services are often late. Parts to assemble are missing. Products are flawed. Merchandise is not properly labeled or priced. Counts are inaccurate. Stores and restrooms are dirty. Clerks are uninformed or untrained, and so on. I remarked to my wife a few years ago that it seemed like 50% of the things we bought had one problem or another. Mistakes cost business owners dearly in lost customers and lost profit, but they are daily occurrences we have all come to accept and expect.

Nearly every summer, lawn service companies cut off sprinkler heads, leave the gates open, and don't blow the grass clippings from the driveways. Customers tell them of these problems, but the workers are inclined to forget from week to week. So, every year or two customers hire new companies, unfortunately with similar results. The owners of these businesses must wonder why their customers come and go.

If you are a Systems Thinker, you can put more money in your pocket every year by doing one simple thing—one system improvement. Have workers review and complete a checklist for each customer—the routine items and the special instructions. For example, close the gates—√ check. Blow the grass clippings off the driveway—√ check. Mow around the sprinkler head in west corner of the backyard—√ check.

Checklists can prevent mistakes in every type of business.

You would be amazed how many problems are solved, how many things are done right, and how many customers stick around when your workers use a simple checklist to ensure consistent quality. And the power of a checklist doubles when they sign their name and turn it in for review by their supervisor.

Systems Thinkers leverage little things like checklists to produce big results.

A few well-placed checklists can save you a lot of grief and lost profit. Go add some system checklists to your operating procedures right now, and you'll immediately see things get better.

Dr. Terry Jackson is Executive Advisor, Thought Leader, Solutions Provider, Organizational Acceleration Consultant and Change Management Architect. Dr. Jackson partners with Executives and Organizations to align Strategy, People and Processes to optimize and sustain Peak Business Performance. His methodologies increase Profit and Productivity, help manage change and reduce organizational cost.