You hear every business owner saying that they need systems.
There’s no argument there. Everyone knows that they need them and that healthy productivity of the business depends on them. Problem is, few know what they really look like or how they work.
Before you can begin to create systems, you need to understand the thought process which will help you develop effective, trouble free systems in your business.
To do this, we should first look at the definition of a system.
In business, a system is a way of getting the same result or outcome repeatedly.
Try giving five staff members a task and leave them to it. They will all put their own slant on it and you will more likely than not get five different results by way of five different processes. Not because they’re not bright, I’m sure they are. But they will all hear and interpret something different, make their own assumptions, put their own spin on it, or fill in the gaps as they see fit.
If you want five people to do the same thing with exactly the same outcome, consistently, then you need to develop a written set of instructions with clear steps, standards, responsibilities and timing.
That is a system.
Some people refer to these things as systems, others call them action plans or processes. It doesn’t really matter what you call them. It matters that you have them.
A business is a set of systems and sub-systems that all work together. Much like the human body.
We have the oxygen intake system, the oxygen pumping system, the food processing system, the waste elimination system and a host of others. These systems are run by key organs such as the lungs, the heart, the liver, the kidneys and so on. They are all interrelated and if one breaks down or stops we are in serious trouble.
Think of your business as an organism that has a product or service delivery system, a customer fulfilment system, a marketing system, a sales system, a financial payment and collection systems and so on.
If the sales system breaks down and there is no new business coming in, the organism is in trouble. If the invoicing system shuts down, there’s no money coming in, if the bill payment system falls apart, supplies will dry up. If the people management system isn’t in place, there will be no consistency and you’ll end up with dissatisfied customers.
You get the picture – all your business systems are interrelated and interdependent – so to keep your business healthy and growing you need to first of all make sure that the right instructions (read systems) are in place, so that people don’t have to keep running to you when there is an exception or they don’t know what to do next. You don’t have to keep your eye on every department so if something breaks down, it’s up to you to address it.
Now you might say, my business doesn’t really have any or many written systems, and it’s going along quite well. I would ask you how your stress levels are. I would ask what happens when someone leaves and they are the only one in the business who knows how to do a particular set of tasks? How often do you as the owner have to step in and ‘fix’ stuff? And what happens when you aren’t there for any extended period of time? Sorry, I forgot – you can’t leave the business for more than a day at a time.
Your business is going really well if you can leave it for an extended time and new business continues to come in and if someone leaves, a new person can be recruited and simply step in and follow the systems seamlessly. Customer complaints rarely occur and when they do, there is a process for following up and handling the complaint. Invoices still go out on time and there is a system for chasing up late payments. Quotes get done whether you are there or not.
Does that sound like heaven?
Start thinking differently about the way you would like your business to operate without you being there all the time.
Until next time…
P.S. Learn more about working ON your business–talk to the coach! Click here to connect with me!