Brent Hodgson, Copywriter

In a recent blog post, I mentioned an outsourced PHP development project that I’d estimated at 3 hours, that blew out to 21 hours, skyrocketing the costs for this task from US$35 to US$288!

Who is responsible for this screw-up?

Well, as “head system designer” for my business, when something goes wrong, it’s my responsibility.

Regardless of what happens, when a system fails, it’s my responsibility to solve this failure in the system.

In the example of the software development cost blowout, my system failed.

In fact, it failed spectacularly!

My system should have had a mechanism for formally limiting the cost of the project.

It could have achieved this by formally capped the development time allowed for this project, using a fixed-price development model, or at least required a formal estimate from the provider before work commenced.

But it didn’t.

So when the provider delivered a sub-par result, I was responsible both for fixing the immediate problem (i.e. the big bill!), and for improving my system to avoid similar failures in the future.

This isn’t the only time my system has failed spectacularly recently…

In fact, I’ve identified system failures in every one of my business procedures - everything from paying a provider a downpayment on work to be delivered, to requirements not being clearly outlined. Combined, these failures have cost me several hundred dollars already.

“Ouch!” you might be saying.

Well, actually, it’s great news!

It tells me that my most important system (process improvement) is working!

In fact, if you read the standards for quality systems (ISO 9001), they assume that there will always be defects, inefficiencies and ineffectivenesses in any system. But the ISO 9001 quality management systems require businesses to check output for defects, review individual processes regularly, keep records and receive regular audits - all to keep the systems in a state of constant improvement.

Do you have systems and procedures for every task in your internet business?

If so, are your systems in a constant state of improvement?

Brent

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