In my work as a Business Growth Strategist, one of the single most common issues I see that prevents growth for businesses has to do with systems. With start-ups and newer businesses, it is the LACK of systems. In more established businesses it is OUTGROWN or OBSOLETE systems.
Large companies understand the value of systems. The ones that have good systems have good results. The ones who’s systems have been allowed to become obsolete begin to fail. It’s easy to see which ones have good, properly functioning, systems and which ones do not based on the experience you have with them and the quality of their goods and services. If you start to pay attention in your travels through the world, take note of your experience with large companies and look for their systems.
What do I mean by systems?
A system is a(n):
- Documented
- Effective
- Efficient
- Consistent
- Repeatable
PROCESS that allows for the execution of tasks or operations within a business.
Why do systems matter? At its core, a business is no more than an array of processes that produce a particular result or outcome that is an income generating ‘thing’. A system is a documented process. Without systems, businesses are largely disorganized and unable to consistently recreate the income generating ‘thing’.
It may seem that all businesses are unique and complicated, right? They may have employees or maybe not, offer different types of products or services. They seem to have a lot of layers and moving parts, right? This is true but, interestingly, there are more things that are ‘similar’ within businesses than there are ‘different’. One of the similarities among all businesses, large and small, new and old, is the inherent need to have systems in place to grow. It is what I call a ‘universal principal of business’.
In order to grow your businesses, everything needs to have a good system. Everything. Every role. Every task. Every operation. Every function. There are 3 primary business functions. While there are others, nearly all businesses have at least these three main functions within their organizations:
- Administrative (the work of maintaining the business itself)
- Sales (the work of obtaining clients and contracts for the income generating activity)
- Operational (the work of producing the income generating activity)
All three of these areas must have good systems established and maintained for them to function at maximum efficiency and allow for growth.
Good systems are made up of the following 5 things:
1) Documented - the process must be written down in a procedural format
2) Effective - it must be a practiced and proven as a means of execution. In other words, it works. It gets the job done right.
3) Efficient - it can be done in the least amount of time and with the least amount of effort and expense
4) Consistent - it can be done consistently over and over and produce the same result each time.
5) Repeatable - it can be repeated or reproduced over and over by more than one person (if only one person can do it... it’s not a system)
Think about it this way. Large companies that we encounter all the time have systems. Right? They understand the value of systems and they have invested in having every process documented and systems created. They don’t leave things to chance. From the smallest things to the largest. They have a system for everything. Why? Because it’s the difference between success and failure. Profit and loss. Everything has been analyzed, the best ways of doing things have been established and documents, and then that becomes their practice.
When businesses have great systems you can easily see it. Think about Chick-fil-a as an example. You can go to any of their locations and get the same thing and it’s consistent. Their people are pleasant, they’re trained to say and do the same things, and your experience is consistent, right? They have great systems.
Think about an airline like Southwest. They have systems for everything. Everything they do is universal and consistent across the board. They allow for the individual personalities of their employees to come through which is kind of unique among large businesses... but the employees all still ultimately do the same things over and over. Every employee, every flight. Good systems.
I challenge you to start thinking of your business as an array of systems. Where they are lacking... build them. Where they are ineffective... fix them.
Contact us today to discuss options for help in developing a strategy for the growth of your small business. We can help you create a roadmap to quickly and confidently grow your business in a focused way. Don’t grow it alone.
https://www.s-b-services.com/get-started
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