One of the
business philosophies I’ve adopted for a number of years is that to be
ultra-successful, your business must be SYSTEMISED. Even before I read Michael
Gerber’s brilliant ‘E-Myth Revisited’ (if you haven’t read it, you need to—it
is required reading) I realised the importance of systemisation and what it can
do for a business.
As Gerber
rightly states, even if you are NOT going to franchise your business, you
should set it up as if it’s a franchise. In other words, create a business
model that can be easily replicated.
There
are many, many reasons why you would want to create a system for everything you
do in your business; for example…
-
It helps to create a ‘perfect’ business and significantly reduces
mistakes (note I said ‘reduces’ - nothing can be totally perfect when
people are involved)
- Because, figuratively speaking, you have a ‘peg
in the ground’ for every aspect of your business, meaning you can
quickly improve each part of the overall system thereby creating an
ever-evolving business
- It makes the recruiting, training (new staff can be ‘up to speed’ very quickly) and development of staff far easier
- It helps create a world-class business (without systems this is virtually impossible)
- It reduces the reliance on ‘staff’ and having to recruit and rely on ‘brilliant people’
- The system drives the business—not the people
- It helps you shape the business the way YOU want it
- Frees up your time, enabling you to work on your business, not in it!
- When
you come to exit (however that may be) you’ll sell it for a high-end
multiple. A systemised business is worth considerably more than a
non-systemised business
These
are just a few of the key benefits of systemising every aspect of your
business. When you see these written down, it makes you wonder why more people
don’t take the time to create a ‘business on autopilot’.
But
it does take time and effort. However, you don’t have to do everything at once.
Start with one aspect of your business, systemise it and then move on to the
next part.
Plus,
as long as your team are fully aware of what your standards are, then getting
them to create the systems and procedures makes your task far easier, gives
them buy-in and ownership and, believe it or not, makes their jobs more
satisfying.
When
they know they have a major part to play in the business, they are much more
likely to play a bigger role in improving it (the ultimate benefit of
systemising any business).
Better
still, if you think about it, you have no way of knowing how to do everything
in your business. Nor do you know how ‘best’ to do everything in your business.
But guess who does? That’s right—your staff. As business owners, we often
neglect staff in terms of asking them how to do things more efficiently and
better.
The
process I’m going to take you through automatically includes them in this
ever-evolving process.
So
how do you do it? How do you create a fully systems-based firm? There are 4 key
stages you need to follow to systemise your firm…
STAGE
#1:
List
all the high-level tasks in the business that need to get done (everything!)
This
is the most important part. You won’t believe how comforting and liberating
this is once you’ve carried out this first step.
Include
absolutely everything required to run your business, right down to the bins
being emptied!
Ideally,
do it by department (sales and marketing, finance, customer service, IT, etc.).
Getting
buy-in from staff, as I’ve already said, is critical to all of this, and
getting them involved in creating their own systems and procedures is key to
this.
STAGE
#2:
What
does perfect ‘look like’?
This
is important. For each high-level task, you need to write down what ‘perfect’
looks like. In other words, what is the optimal final result you’re seeking
from each particular high-level task?
Again,
this is how you, your department heads and staff keep control of the output and
delivery of each task, and it’s very comforting!
Notice how
this is very ‘team’-orientated.
STAGE #3: Break each
task down into precise steps
Now take
each high level
task and break this down into
individual steps. Again you’ll find this liberating.
This is the
‘nuts and bolts’. This is the step-by-step ‘system’ of doing each individual
task. Use screen shots, diagrams, checklists, even video. The easier you make
this—the better.
It’s this
stage that takes the longest, and it does require serious thought without
interruption.
You have to
create the steps so a person who has never done the task before can do it the
first time at the required high level of delivery you want.
Let’s use a
very simple example as illustration. The Task is ‘To Sharpen A Pencil’.
Now, clearly,
this is not something you would need to break down like this (you do have to
use your common sense) but it serves as a good example of the detail required
to ensure ‘perfect’ output.
Here are the
steps…
STEP
#1: Take blunt pencil and insert into pencil sharpener (the sharpener is
located in the top right-hand drawer of John Smith’s desk).
STEP
#2: Turn the pencil clockwise whilst applying pressure on the pencil so the end
of the pencil is pushed against the sharpener blade.
STEP
#3: After 6 or 7 turns remove the pencil and check to see if it has been
sharpened fully.
If
not, repeat tasks 1 and 2 above until you’re happy with its sharpness.
STEP
#4: Replace pencil sharpener back in top right-hand drawer of John Smith’s
desk.
As
long as you include each step in detail, then this will be easy to accomplish.
STAGE
#4:
Systemise
then automate
Now
look through each step and decide which steps can be automated and which steps
need manual intervention.
***
That’s
what it takes to create a systems-based business.
One
thing you must do if you are involving staff (and, as I’ve said, you should) is
to explain to them exactly ‘HOW’ you want them to create their systems and
procedures (take them through these steps). Ideally, you should create a manual
for HOW to create the systems and procedures
Then I
suggest you meet with your staff every month for 15 minutes to check on their
progress. You have to manage the process closely and carefully. Make sure they
allocate time each week to focus on their systems, otherwise they won’t get
done.
