Avoiding Single Points of Failure

Ever wonder why there are multiple elevators in a hotel? It’s not just to decrease the wait time for guests. There are usually at least two elevators in any hotel to avoid a single point of failure (SPOF). If one elevator isn’t working, there is a backup. Same for offshore boats with two 150 HP motors instead of just one 300 HP motor. But the best example is probably skydivers who always—always—pack reserve parachutes. A SPOF is any part of a system that if it fails, it will stop the entire system from working. SPOFs are undesirable in any structure with a goal of high availability or reliability, be it a business practice, software application, or other industrial system. At CBS Medical Billing we find SPOFs to be a common pain point for clients. Because so many O&P practices are small and medium size, they often do not have more than one key person in charge of essential procedures. A typical call comes into our office where a client says things like, “My office manager left abruptly, and our ability to do any billing has come to a complete halt.” “I can’t even log onto anything.” “My human resource specialist left, and I don’t know how to do payroll.” I’m writing about this because it is all too common in our profession. I’d like to challenge all my readers to look internally at your practice and identify what possible SPOFs exist in your practice? Often the key employees who are your SPOF are the people who helped you get where you are today. They are usually your experts, and the person your staff would go to when they have a problem. Many times, these key people become SPOFs because they confuse being indispensable with job security. Consequently, if you’re waiting for employees to come to you and say, “Hey boss, maybe I should share my job knowledge with someone else,” you’re probably waiting in vain. What if that one employee won the lottery and hopped on a private jet, never to be heard from again. While that might an unrealistic example, whatever the reason for that key employee’s departure, be it voluntary or an unexpected demise, your continued success cannot depend on one employee’s action and knowledge. You must have a succession plan in place for any crucial employee. How would your daily operations function if that employee never showed up at the office again? I strongly suggest that all possible SPOFs in your practice have a written operating procedure on how to do their jobs. This should include details of what they do, and how they get it done. If only one person knows billing or payroll, this process should be in writing and easily accessible to the management and/or the owners. It will do you no good if that person is the only one who knows where it is. All computer and software logins, usernames, and passwords should be on a shared document that the owner and/or another reliable entity can immediately access. It is also important to have the answers to the security questions often established when accounts are set up. Written operating procedures should exist for specific business tools, including: ■ QuickBooks or other accounting software ■ Your clearinghouse ■ All portals for insurance companies ■ Microsoft 365 ■ Purchasing ■ Payroll company If you have a person whose absence from the company is a SPOF, it is recommended that you explore obtaining a key person insurance policy. This is life insurance that covers the company in the case of a sudden loss of a person critical to running the business. The policy helps a company financially while replacing a high-level SPOF. It is the role of any leader to identify, train, and empower other leaders who can perform on our behalf. Putting procedures in place to ensure business continuity through identifying and addressing SPOFs is part of that responsibility.

Avoiding Single Points of Failure

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Prosthetics Research Wins Physics Challenge

Partner and Member Feedback Help the Academy Plan FOR O&P’s Future

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