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Increase Efficiency With Checklists
By Jennifer Elder, Tiffany Construction and Development Corp.
 With pennies hard to come by these days, every step you take to improve your productivity can add dollars to your bottom line. A simple way to increase your efficiency is to use checklists.
Checklists ensure that tasks get done the same way every time, in the shortest amount of time possible, and with a minimum of errors. They can help keep different departments on the same page. Checklists can even be used as a training tool for new employees.
The benefits of completeness, consistency and timeliness can be felt immediately.
When a Task Becomes Second Nature, We Can Get Complacent, Forgetful
It is easy to fall into the trap of saying, “I’m an expert. I don’t need a list to remind me what to do.” Unfortunately, that’s when you need a checklist most.
When a task becomes second nature to us, we can get complacent and forgetful. How many times have you gone to the grocery store without a list and forgotten the most important item you needed? Missing one thing won’t kill you, but it takes a lot more time when you have to go back to the store a second time.
A checklist should not be viewed as a crutch. It should be considered a useful tool that improves efficiency.
Production Schedule Is One Type of Checklist
Many builders already use one form of a checklist — a production schedule. A production schedule ensures that all steps are completed in the right order and in a timely manner. And it has the added benefit of letting everyone know where you are in the job.
If you see the benefits of using this form of checklist, why not apply it to other areas of your business?
Sample Checklist for Payment Processing
Checklists can enhance both simple and complicated jobs. In your accounting department, you can use a checklist for processing accounts payable. It might look like this:
- Code bill to company, job and account number
- Enter bill into accounting system
- Stamp bill as entered
- File unpaid bill in pending file
Sample Checklist for Project Start-up
On the more complicated side, you can use a checklist for starting a new project. It might begin like this:
- Prepare a timeline for closing based on signed contract
- Prepare list of items to be completed by buyer and seller prior to closing
- Secure financing
- Choose name for project
- Design new product to fit building pad
- Select standard features
- Prepare construction budgets
- Design brochures
- Determine selling price
- Update Web site for new project
Have Veterans, Novices Examine a Draft Checklist
To begin using checklists in your business, start with a complex task, or one for which steps are frequently forgotten. Ask those familiar with the task to write down the steps for doing it.
Have several people review the list — one familiar with the task and one who is not. The person familiar with the task will help fill in missing steps. The person unfamiliar with the task will help clarify steps.
If multiple departments are involved, have each department create their portion of the checklist. Then get everyone in the same room to consolidate into one master list.
Organize Lists to Suit Specific Tasks
A checklist should be organized to suit the task, often in chronological order. A production schedule wouldn’t make sense if it was in alphabetical order.
The new project checklist might make more sense if it were divided up by the departments involved; for example, estimating, finance and marketing.
A checklist should be all-encompassing, whether or not you perform each step every time. It is easier to cross off an unneeded step than to try to remember to add it.
Jennifer Elder is a CPA, certified management accountant (CMA) and the chief financial officer for Tiffany Construction and Development Corp. in Melbourne, Fla. For more information, e-mail Elder, or call her at 321-259-5001 x110.
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