Does it PASS is a question I ask myself every time somebody makes a suggestion to me. It is also a question that I'm trying to get my team to ask before they come to me with suggestions.
What does this question mean and why do I think that it is important?
Does it PASS refers to four different questions that I think need considering in business, every time you make a change or consider an investment.
It stands firstly for PROFITABILITY. What does the proposed change do for profit? Does it increase it/decrease it or have no effect? To calculate this I like to do a partial budget to consider the benefits (extra income and costs saved) and the costs (income lost and extra costs). This usually gives a good indication of the financial viability of the proposal, however it does not tell the full story.
The second thing I like to consider is ABILITY. Does the proposed change make the business easier or harder to run? If it's a tool that makes somebody's life easier (such as a weed cutter we recently purchased) it might be a good investment, even if on the surface, it doesn't look like extra profit will be achieved.
Thirdly - Will the proposal help meet the STANDARDS of the business. Every business has standards. These may be customer requirements or ways of working that help efficiency. If a proposal or change helps meet a standard, even though it doesn't directly improve profitability or ability, it may well be worthwhile.
Finally, is it SAFE. In our business, safety is the number one game. No amount of profitability will be worth a serious accident. Therefore, safety needs to be considered with every change or purchase.
So, there you have it - a short and simple template in which to consider any change or proposal. Next time you are given a suggestion, sit down with the person suggesting it and go through the steps of thinking - Does it PASS?