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Systemising for better results
We know we should systemise more of our business, but what does this mean and how do we do it?
What is a business system?
Simply put, a business system is a set of related activities that produce a consistent result.
It implies an ongoing or repeated process rather than a one-off activity. For example, your sales, time management or quality system.
Why systemise?
Initially systemising parts of your business takes extra time, effort and sometimes resources – so what are the benefits?
Improved quality – a proven way is followed so there are less errors
Increased independence – people know what needs doing and therefore require less supervision
Improved reputation – Customers and others that interact with the business are treated in a consistent and predictable way
Greater synergies – employees understand how their role affects other parts of the business
Captures and maximises the use of your intellectual property.
All of these result in increased profitability.
What should I systemise?
Important and regular tasks should be systemised. Before systemising anything always ask - “why are we doing this activity?” If the answer is, it adds value or it is crucial to our business systemise it!
Who should be involved?
At a minimum the person who does it. Also consider who else may be affected by this system, possibly administration, IT or operation staff? Maybe you can incorporate some synergies with other processes and systems by including them too.
When to systemise
For new activities…
Where possible take some time to plan how you will ensure a consistent result in this area. Set things up generically so you can customise where necessary. Link the system into other appropriate organisational systems e.g. filing, diary, planning, reporting, training. If it’s not possible to do this beforehand, complete the activity, and then diarise some time afterwards to review how to turn the activity into a system.
For existing activities...Take some time once a week, to work on systemising your business. Make it non negotiable as you are investing in the future success of your business.
How to systemise
- Make a list of the most important, ongoing activities in your business, e.g. selling, cash management, work scheduling, customer communication.
- Identify what results these activities are meant to deliver, e.g. profitable sales orders, cash surpluses, efficient workflow, confident informed customers. This is your why.
- Select one activity/system. Gather what information you have, involve the appropriate people and summarise the best way to ensure a consistent result – the who, what, where, when and how often.
- If you are making a significant change rather than documenting or streamlining what already occurs – trial your change, then review it’s effectiveness from each stakeholder’s perspective.
Some guidelines
Keep it simple – a system doesn’t have to be complex. Fat, wordy procedure manuals are NOT necessary. A simple form or MS Word template can be very instructive. So are checklists, instructions with ‘if & then statements” or samples. A flowchart is also a great way to illustrate the order and relationships between activities.
Focus on the result!!!!! Every system should have a result. For example the sales system is there to generate sales. It is easy to get carried away by making things too fancy and forgetting what the system is there to achieve. Make sure the expected result is clearly noted in the system documentation.
Involve the right people. All things in our businesses are interrelated. Think broadly about who needs to be involved. If it is the sales system, you may need to involve administration and operations people too. A sales system that is brilliant for sales but an administrative nightmare is not a good solution.
Make sure it fits. A system is only going to stick if it fits your business! One size does NOT fit all. Make sure what you are implementing fits with the needs and style of your business. If you have a fairly informal style of operating, then simple forms, checklists and colourful flowcharts may work better than wordy procedures. If you use technology a lot then consider using it in your systems for diarising, planning, templates, procedures, even using an Intranet.
Getting started. Not everything has to work perfectly to get started. Just pick one result or activity that you think needs attention and get to it. You will find the increased efficiency and time saved, provides more resources to tackle the next one, and then the next one….
Then, review periodically. Things change. The effectiveness of your business systems should be reviewed every year. Keep an eye out for repeated errors or problems, they may be the result of an ineffective system. Rather than use ‘band-aid’ solutions dig a little deeper and permanently prevent the errors or problems.
Save time while increasing your quality and productivity. What can you start systemising today?.
First published in the March 2006 issue of "Her Business" magazine
Business Systems Tools
River Empowerment Ltd provide the following Business Systems tools, training and consulting services:
Consulting Services
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