Do Systems Run Your Business?
Do Systems Run Your Business?
Systems are often the most misunderstood area of business today. Yet they are easy to implement and make your life and that of your staff so much easier. Systems will make your business run smoothly, efficiently and profitably!
Another way to understand the importance of systems is to ask yourself this question: Do I work more ON my business than I work IN my business? Remember, the ActionCOACH definition of a successful business is a "commercial, profitable enterprise that can work without you." Systems allow your business to work without you. If you work more IN your bsuiness than ON it, your business will never grow and prosper, and it will not reach its full potential.
Here is wisdom! Your business is your product; it's what you are building, and it's where you are ultimately going to make your profit when you sell it. And, systems are the foundation of your business.
The basic principle is to "systematize the routine and humanize the exception." Anything that can't be systematized needs to be run by people. Always look at putting a system in place rather than employing more people. A systems means that things are done consistently, irrespective of which team member is responsible.
Therefore:
- Systems run your business
- People run your systems
- You lead your people
There are five basic steps to systemization:
1. Document your company structure by creating an organization chart. Then identify the critical areas or functions for your business to be a success.
2. Next, for each critical area or function, flowchart your processes. Describe with detail and accuracy exactly what happens in each area. Chart the path that works through each area.
3. Document how it gets done. Involve your team. Have the team member who is currently doing each job write down every step in performing a task. Then have a new person do the task with the draft written steps. If the team member currently doing the task has to step in and explain anything to the new person, then add steps or clarify. Once completed start again until any person can do the task without intervention.
4. Measure using key performance indicators. Typically, these will be the top measures that show system performance. Get these measures from the person doing the job. For example, for your sales system you can use the number of leads generated, conversion rates, or average dollars per sale.
5. Allow the system to change and grow with use. Ensure that the system is self-correcting and can evolve by itself. Make sure team members keep the system documentation current.
Some final tips:
- Don't overcomplicate systems or people won't follow them.
- Use lots of photos, videos, tapes, etc. This may be as simple as printing a computer screen or video taping someone doing the task at hand. This will make the systems much easier to follow.
- Document your system in a "policies and procedures" or "operations" manual in an easy to access format. And make sure everyone knows where it's kept!
As your business continues to grow, effective systems will be paramount to your long term profitability, good work-life balance, and a great lifestyle for you and your family. Here's to your continued success!
Do Systems Run Your Business - To learn more about this author, visit David Carter's Website.
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Do these issues look familiar in your business: Staff turnover, can't hire good people, missed due dates, reactive environment, poor cash flow, long and hard hours, poor customer retention, confusion, duplicative effort? If so, what do you think is the common cause? The answer is lack of systems in your business.
Systems are often the most misunderstood area of business today. Yet they are easy to implement and make your life and that of your staff so much easier. Systems will make your business run smoothly, efficiently and profitably!
Another way to understand the importance of systems is to ask yourself this question: Do I work more ON my business than I work IN my business? Remember, the ActionCOACH definition of a successful business is a "commercial, profitable enterprise that can work without you." Systems allow your business to work without you. If you work more IN your bsuiness than ON it, your business will never grow and prosper, and it will not reach its full potential.
Here is wisdom! Your business is your product; it's what you are building, and it's where you are ultimately going to make your profit when you sell it. And, systems are the foundation of your business.
The basic principle is to "systematize the routine and humanize the exception." Anything that can't be systematized needs to be run by people. Always look at putting a system in place rather than employing more people. A systems means that things are done consistently, irrespective of which team member is responsible.
Therefore:
- Systems run your business
- People run your systems
- You lead your people
There are five basic steps to systemization:
1. Document your company structure by creating an organization chart. Then identify the critical areas or functions for your business to be a success.
2. Next, for each critical area or function, flowchart your processes. Describe with detail and accuracy exactly what happens in each area. Chart the path that works through each area.
3. Document how it gets done. Involve your team. Have the team member who is currently doing each job write down every step in performing a task. Then have a new person do the task with the draft written steps. If the team member currently doing the task has to step in and explain anything to the new person, then add steps or clarify. Once completed start again until any person can do the task without intervention.
4. Measure using key performance indicators. Typically, these will be the top measures that show system performance. Get these measures from the person doing the job. For example, for your sales system you can use the number of leads generated, conversion rates, or average dollars per sale.
5. Allow the system to change and grow with use. Ensure that the system is self-correcting and can evolve by itself. Make sure team members keep the system documentation current.
Some final tips:
- Don't overcomplicate systems or people won't follow them.
- Use lots of photos, videos, tapes, etc. This may be as simple as printing a computer screen or video taping someone doing the task at hand. This will make the systems much easier to follow.
- Document your system in a "policies and procedures" or "operations" manual in an easy to access format. And make sure everyone knows where it's kept!
As your business continues to grow, effective systems will be paramount to your long term profitability, good work-life balance, and a great lifestyle for you and your family. Here's to your continued success!
Do Systems Run Your Business - To learn more about this author, visit David Carter's Website.
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Casey GollanCasey Gollan, Business Coaching & Mentoring Programs. Add $1 Million to $10 Million in the next 1 to 3 years. Since 1996 Casey has to added hundreds of millions of dollars to businesses. Watch a free video see client results Business Coaching website. - Visit Casey Gollan's Website |
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
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